Used Car Insurance in the UAE – A Guide
Used car insurance is easily available in the UAE. But does it seriously impact the bottom line of your premium?
The used car market is huge in the UAE. It is common knowledge that the UAE is not a cheap place to live in. Many families opt for used cars to meet the damned of a family vehicle while keeping things within budget.
But how does this translate into car insurance? What factors determine the premium for used car insurance? Is it worth buying a used car for or should you just save up for a better option?
We’ll discuss this and much more in our blog today.
Benefits of Buying Used Cars
There are many reasons why buying a used car is beneficial:
- Cheaper – As we mentioned before used cars are a cheaper option compared to brand new cars fresh off the assembly line. They are budget-friendly and can stretch a small savings account.
- Practice Run – Many residents in the UAE are ex-pats. Some come from countries where they drive on the left side of the road. Therefore, it is wiser to buy a used car until you get the hang of driving in the UAE.
- Minimum Risk – With a used car you can expect a minimum risk of great damage. It won’t be as costly to repair a brand new car. This fact can shave a lot off your premium. Used cars are also less likely to get vandalized. Minimum risk is also helpful when buying used car insurance.
- Second Car – If you’re a big household you’ll require two vehicles. But not everyone can afford two. So used cars are a great second car option. While the brand new car can be used for longer trips, the used car is great for school runs, and managing tight inner-city streets.
Common Problems With Used Cars
If there are benefits you can bet there will be problems with used cars. The most common problem is you’re not entirely sure what you’re going to get. There are no guarantees with a used car. Here are some of the most common problems you should look out for when buying a used car.
- Repainted Panels – Repainted panels are an indicator that there has been damage that was repaired. Unfortunately, you can’t really tell repainted panels with the naked eye. There are certified paint meters that can assess the difference by measuring paint density.
- Dented Rims – Dented rims are easy to spot. However, they don’t always determine how bad the damage is. Damaged rims can seriously affect the alignment of your car. To get an idea of how bad the damage is you should take the car on a long test drive. These can have a major impact on your used car insurance.
- Brake Pads – Worn out brake pads can be a moderate to a serious problem. Let us explain. In most instances, worn-out brake pads aren’t serious problems, but if the pads stop functioning properly it can cause trouble when you’re driving. It is also an expense you’ll have to bear if you find out about them after you purchase a car.
- Battery Damage – Battery damage is something you should look out for. If it is still under the manufacturer’s warranty you’d be advised to get damaged batteries replaced from the manufacturer. This can be an expensive undertaking. Replacements can cost around AED 2500 and effect your used car insurance.
- Engine/Transmission Leak – This is one of the worst damages. It is hard to determine where the leak is. Repairmen will have to disassemble the engine or transmission. This takes time, energy, and can cost a hefty amount.
Used Car Insurance – The Details
It is a common misconception that used car owners are charged a lower car insurance premium. This isn’t always true. Your car isn’t the only factor that determines your premium.
Your Choice of Used Car Insurance
If you choose to purchase an expensive policy your premium will be higher despite your second-hand car. Third-party liability insurance is a cheaper option. But if you want to mitigate the risks of buying a used car with Comprehensive coverage you can expect a rise in car insurance premiums. Incidentally, Comprehensive coverage is usually 10% over and above the value of your car. This can mean a lot especially when you’re trying to save on premiums.
When determining the value and risk of your used car, insurance providers look at a list of factors:
- Vehicle history – Whether the car has been through any accidents and the seriousness of the damage. It will also look at the repairs done after.
- Availability of parts -It is important to be sure that parts are easily available in the market for your car. Used cars tend to need more maintenance and replacement parts. Used car insurance providers will need to see if the parts are available easily.
- Safety score – Saftey scores are very important. If your car scores high on the safety score you can be awarded a lower used car insurance premium. However, if the score is too low the company might not cover you at all.
- Theft rate – Another misconception is that old car rarely get stolen. Thieves find old cars easier to disassemble and sell for parts.
Antiques and Used Car Insurance
Antiques, on the other hand, are considered luxury items. They are costly to insure. Their parts aren’t easily available, and they are mostly used as collector’s items. You can’t expect cheap used car insurance for antiques.
The best way to get cheap used car insurance is to shop around. Conduct online used car insurance comparison to get access to competitive quotes. You can get better deals and more efficient policies when you compare online.
Originally published Mar 22, 2020 17:20:45 PM, updated May 04, 2021