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Traps of Car Insurance In the UAE

Written by Huma

Traps in car insurance can turn out to be your biggest nightmare.

One can agree that insurance policies are not always easy bedtime stories, that at one go, you understand all the terms and conditions and monthly car premium installation.

Dubai is the economic hub of the UAE. Boosts the number of footfall in terms of visitors and working migrants, but the roads are getting busier, and accidents are happening more often.

Therefore, the government had to formulate a law where every individual having a car should have auto insurance no matter how big or small the car you have.

This, in no way, was a bad decision. Auto insurance protects not only you but others driving on the road. However, it does give insurance providers an open season to trap unaware customers.

Some auto insurance providers, you will find, take full advantage of this and trap their customers through the use of complex jargon and pages of legal documents and lists of exclusions. It’s no wonder many buyers find them confusing and sign the policies without proper understanding. As a result, they end up with expensive and rigid vehicle insurance.

We have compiled a list of 10 traps that most people should look out for when purchasing auto insurance in Dubai.

Trap#1

Driving Another Car:

One of the common misconceptions that everyone has is that they drive someone else’s car.

In unfortunate incidents, the driver insurance provider will cover the expense if they have comprehensive motor insurance policies. Typically, this permits you to drive under third-party insurance.

But that’s not the case all the time.

There are several strict legal regulations that stipulated;

  • A driver under the age of 25 cannot avail of this cover in any situation.
  • A driver aged 25 or more can avail of cover but has to ask the insurance company to add this to their policy. The driver usually has to give some extra payment.
  • Their insurance provider will pay a definite amount, and the driver must pay the remaining payment.

Trap#2

Don’t get attracted by the Marketing campaign:

Be alert to all those extensive marketing content and campaigns done by the auto insurance companies that show you the world is a beautiful place with the help of their insurance service.

Do your research and learn by going through online insurance car quotes, understand the UAE’s legal benchmark for auto protection law, and then make a good decision.

Trap#3

When you hide your car history

It’s better to come out clean about your car history, driving license, etc. while signing the auto protection policies forms.

Some vehicle insurance providers are very particular about their client’s background or driving history.

  • Also, specify the driver details who will be riding the insured car to avoid any significant issues at the time of the accident and get claims
  • Some chances of hiding out any information, particularly regarding the history of your car, may lead to rejection of your claim at a time of need.

Trap#4

Car Premium and quality service:

If your monthly auto premium is high, it doesn’t mean you will have good quality or high service/coverage from your auto insurance policies.

The same goes for low premium doesn’t always indicate you are saving a lot of money.

This kind of trap is established when the clients see the prices and make an estimate that high/low insurance fees determine the car premium and claims.

But surprisingly, it has nothing to do with that. Your car type and requirement set the premium and the quality service needed at a given time.

Trap#5

Ignoring Add-Ons

Auto insurance companies are always working to attract a high target audience. That way, they create several packages and deals that can be very lucrative for you in the long run.

Before ignoring it, look at these supplemented value-add-ons and see the pros and cons it has for your car and, of course, for your pocket. These add-ons might boost your protection and coverage plan.

Trap#6

When you get a high deductible.

Picking out the high deductible in your insurance policy can reduce your monthly car premium but look at the bigger picture; you put yourself at high financial risk.

In case of accidental car damage, you may have to pay a large amount of lump-sum monetary expense that disturbs and jeopardizes your savings from a cheap premium, which all goes in vain.

Trap#7

Saving money from auto insurance coverages

To get an ideal coverage plan for your car, always evaluate the covers given in third-party and comprehensive insurance to suit your car’s needs.

  • Third-party coverage means an accident caused by you, and then one having liability coverage will aid the person in paying for the other person’s expenses.
  • Comprehensive coverage, also known as full coverage insurance, covers your car from major and minor accidental events like vandalism, theft, repair, maintenance, etc.

Certain factors like your financial criteria and what kind of driver also help you to choose your insurance plans.

Trap#8

Having Incomplete Automobile History

Your car history greatly affects fulfilling the legal and insurance requirements and setting car premiums.

Maintained complete documents of your vehicle manufacturing date, model and specification, and inspection report before making the payment. Auto insurance providers set high premiums for expensive cars like BMW and sports cars due to the high risk of accidental history found on them and the expense it would take to repair them.

When you have the proper knowledge of the history and conditions of the vehicle, you can make the right decisions regarding auto insurance policies.

Trap#9

Repair and Maintenance Cover:

Many insurance companies talk in circles. For instance, it’s wise to check the policy in case of accidental car repair damage, and maintenance would be taken care of by the agency or outsider/non-agency.

Agency repair can be expensive and automatically enhance your monthly car premium, whereas opting for non-agency maintenance, your premium rate will be cheaper.

Now, this depends upon you. Are you willing to trust and take confidence in the internal agency or non-agency repairs?

Trap#10

Sticking to one Insurance Provider for a number of years

You fall into this trap when buying multiple or revising your renewal insurance from one auto protection provider. It makes your overall package expensive and rigid.

  • That’s why many insurance providers provide good deals to those clients who switch to their companies.
  • You can be the real player and money saver genius, as you can avail the discount after the one or 6-month period of switching.

Learn from your mistakes and the knowledge gained over the previous year and move on to better options.

FAQ’s

Where can I do the car insurance comparison?

You can compare and select the best car insurance quote on BuyAnyInsurance.

How many car insurance types are there?

There are four main types of car insurance, Comprehensive, Third Party Fire and Theft, Third Party Property Damage and Compulsory Third Party Insurance (CTP).

What is car insurance 3rd party?

A 3rd party car insurance is a type of car insurance that covers the damages to your car done by other people.

What does car insurance not cover in UAE?

It does not cover the car owner’s damage, including car damage, but covers the bodily injury or property damage of the third party by the insured vehicle. The Policy also does not cover loss by fire or car theft.

How many types of car insurance are there in the UAE?

They can choose from the two main types of auto insurance available in the UAE: comprehensive insurance and third party insurance.

What are the two types of motor insurance in the UAE?

There are two types of car insurance available in the UAE:

  • Comprehensive Insurance: As the name suggests, a comprehensive car insurance policy will offer you a wider protection of cover. …
  • Third Party Liability (TPL): Third Party Liability car insurance will only cover damages caused by you to other people’s car.

Is car insurance mandatory in the UAE?

Under the UAE law it is required that every vehicle on the road is insured. Vehicle insurance provides you with security and financial protection against third party liability claims in case of an accident. With Comprehensive Insurance, you will also be protected against loss or damage to your own vehicle.

Conclusion:

Our content always wanted our audience to be more well-informed and beware of these significant traps that can make your auto insurance policies very costly.

Related Articles:

Secure & Cheap car Insurance in the UAE: Secret Revealed

Reason Behind Motor Insurance High Rates

Buy Car Insurance Online in Dubai & across UAE


Originally published Oct 20, 2019 13:34:40 PM, updated May 07, 2024

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