Busting 6 Car Insurance Fallacies in the UAE
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There are many blogs and articles out there on the interweb discussing and constantly dissecting car insurance in the UAE. They expound on topics of general awareness, as well as complicated procedures. However, there are still some car insurance fallacies that surface in our customer queries. Confusions about what exactly is included in their policies. A misunderstanding of what they can actually claim. A firm belief that your insurance sales rep has your best interest at heart.
These widely held misconceptions are interesting, to say the least, but they are also dangerous if not busted with cold facts.
Car insurance fallacies usually persist when a concept is not fully understood. Misinformation coupled with partial information makes you ill-prepared to recognise insurance policies that are great for you. Yet the worst is when you are deliberately left misinformed by those who should be making things clearer for you.
To shine a light on myths is the only way to tackle them. Here are some car insurance fallacies that are popular in the market. And the truth, dismantling the myths, so you’re clear about what you’re buying when in the market for car insurance in the UAE.
Your car dealer will give you the best insurance deal as well.
This car insurance fallacy derives more from the inherent human need of convenience than anything else. In a world where you can go to Walmart, or Target and get anything and everything under one roof, it would make sense to look to your car dealer to provide you car insurance.
Yes, car dealers can provide car insurance as well, but is it wise to put all your eggs in one basket? And what makes you think your car dealer has your best interest at heart? Trusting any individual or organisation with your financial decisions doesn’t seem like the clever thing to do.
When you turn to your car dealer for insurance you might look forward to a discount. But how do you know they chose the best policy? This lack of information will backfire in the event of a claim. For proper car insurance that you’ll need to some online comparison yourself. BuyAnyInsurance.com is a great platform to compare car insurance in the UAE. It provides comparable quotes within seconds. You can find a great policy without relying completely on your car dealer.
You should give a higher valuation of your car on the policy
Car valuation is basically appraising your vehicle to determine its monetary worth. Brand new cars, with the latest features, have a high value. Expensive, luxury cars will also have a higher value. The car insurance fallacy is that the higher you value your car on the policy the better it is. The thinking behind this is that the higher the value the more you can claim as a result.
Here’s where this car insurance fallacy is warped – A higher car valuation only means higher premiums. It will not allow you to make higher claims on your vehicle. In fact, you can’t claim your car’s total worth unless the accident resulted in the vehicle becoming a total loss. This is rare. So what will end up happening is you will pay a higher premium for no reason.
The best bet is to get your cars actual value noted in the policy so you only pay what needs to be covered. No one wants to pay more when they can save money. Incidentally, giving the wrong value of your car can also be misconstrued as lying on your insurance policy and can result in rejection of claims. We would strongly advise against it.
Accidental cover pays for all medical bills in case of an accident
Car insurance, like any legally binding document, can be tricky. That’s why its best to read the small print before signing. The personal accident cover is an added feature promoted by most insurance companies. It ensures that in case of an accident your medical bills will be covered. Sounds great, doesn’t it? It is, and it isn’t.
If you don’t read the fine print you will be under the impression that any and all accidental damage is covered. This is not true. Insurance providers are very clear about exactly what kind of injuries are covered in personal accident cover. If your injuries don’t fall into that neatly outlined criteria then it will not be covered by your insurance.
This will come as a blow to many. It is by far the most widely believed car insurance fallacy. However, it does not need to remain so. Check with your insurance provider what exactly is covered in your personal accident cover. If you think it isn’t enough, insist to have more criteria added.
Agency-repair is better than non-agency repair
We can see the appeal. It doesn’t stretch the imagination to think that the manufacturer that made the car will be the best option to repair it. This line of thinking is why so many insurance providers market agency-repair as part of their comprehensive coverage plans.
What they don’t tell you is how expensive agency repair actually is. It bumps up your premium by a huge margin. And who’s to say they do a better job than non-agencies? Non-agencies do as commendable a job as any but at a lower premium.
At the end of the day, it comes down to how much you’re willing to pay in premium. Cutting down on agency repair can help you save a lot of money.
All mechanical repairs are covered in the policy
The car insurance fallacy is that all mechanical repairs in the event of a breakdown are covered by the insurance policy. This is not true. Insurance policies only cover mechanical repair in the event of an accident. Regular repair in case of breakdowns, or the general disrepair of the vehicle, are not included in the policy.
If this is something you feel should be included, talk to your insurance provider and insist upon it. It will add to your premium but you will get the resources you need.
Oman cover means you can drive in that country
Oman cover, also known as the GCC (Gulf Cooperation Council) cover, was initiated to make travel from one GCC country to the other easier. Majority of insurance companies in the UAE provide this feature with their comprehensive coverage plans.
The myth is that you can drive in Oman if you have an Oman cover. This is only partially true. The Oman cover does not authorize you to legally drive in Oman. It only protects you in case of personal damage or own damage. It does not include third-party liability.
To buffer Oman cover you have to purchase third-party liability at the border from a local insurer.
Now that you’re armed with the truth it should be easier for you to navigate car insurance in the UAE. But keep an eye out for any other car insurance fallacies and let us know. Our team of experts would love to clear up any misconceptions.
Originally published Oct 15, 2019 11:00:55 AM, updated Jan 06, 2020