Buying car insurance in UAE can seem to be a mammoth task, especially for first-time insurance buyers. People tend to believe various myths and end up making wrong insurance decisions. It is high time that these myths are busted. In this article, we will bust top 5 myths about auto insurance in UAE.
Myth-1 If I have Personal Accident Cover, my Medical Bills will be Covered in Case of an Accident.
Truth- At the time of purchasing car insurance and opting for additional personal accident cover in order to fulfill your insurance needs, you may suppose that it will take care of your medical expenses in case you get injured due to a road accident. However, this not completely true.
Once a diagnosis has been confirmed, here are a few payouts that will be given to you in a lump sum.
- Personal accident coverage offers in the event of pre-decided specific injuries. God forbid, if you succumb to injuries due to a road mishap, personal accident cover will provide a sum insured to your family up to AED 2, 00,000.
- In case you go blind due to the accident, you’ll be eligible to get up to AED 1, 00,000 for each lost eye.
- In case you lose a limb, you’ll be eligible to get up to AED 50,000 for each limb.
Your Takeaway- If you’re injured due to an accident, you can’t just show your policy document at the hospital and get medical coverage. You will have to rely on your health insurance plan (if any) to take care of the medical expenses.
Myth-2 GCC Cover Offers Comprehensive Coverage.
Truth- GCC cover is quite a common feature offered by major (gold) car insurance plans. However, it only covers you partially. It doesn’t make you eligible to drive to another GCC country. This feature covers financial safety against ‘own damage’ only.
Your takeaway- As per law, it is mandatory for every car owner to buy vehicle insurance for his vehicles. GCC cover doesn’t legally allow you to drive in any GCC country. It is because it doesn’t cover your third-party liabilities. TP insurance can be bought at the border for as cheap as AED 90 for 5 days.
Myth-3 My Comprehensive Plan doesn’t Cover Mechanical Repairs.
Truth- The most common myth surrounding vehicle insurance in UAE that a comprehensive plan doesn’t cover mechanical repair costs in case you’re car breaks down.
Your Takeaway- Don’t believe everything you hear. Your insurer won’t cover depreciation and mechanical wear and tear due to usage. However, if your vehicle breaks down, automobile parts will be covered in accordance with the rate of depreciation.
Myth-4 My Car Dealer will give me the Best Insurance Plan.
Truth-While purchasing a brand new car, it sounds very convenient to buy your insurance from the car dealer. This might not be a good idea. When you buy car insurance offline from insurance agents, insurance brokers or car dealers, you don’t get the best deal. You get what they want you to buy. Instead of letting others choose for you, search, compare and buy your policy online.
With the world going digital, insurance industry has adopted certain technological advancements. Now, the best way to buy insurance is online. Doing so offers plenty of benefits like ease of buying, more transparency, wide variety etc. It is also time-saving as well as money-saving.
Insurance is something that you must deal with directly. When you buy insurance from dealers, they get a ridiculously high commission. The commission they receive goes from your pocket. On the other hand, when you buy insurance online, you come across various plans and compare them to land the best deal. You can compare their features with their premium and pick the plan that suits you the best.
Your Takeaway- You can enjoy maximum insurance coverage without paying a bomb. The price you pay is for your benefit, not for the dealer’s/broker’s.
Myth-5 Agency Repair is a must-have Feature.
Truth- Agency repair is the highlight of comprehensive car insurance plans. It covers accident-related repairs (if any) at the authorized garage of the official dealer. Since agency repairs enhance comprehensive coverage, they come at an enhanced premium. The decision of opting or not opting for agency repair is completely up to you.
If you have a luxury car and you specifically want genuine spare parts installed in your vehicle after an accident, you can opt for agency repairs. But if you have a generic car with easily available spare parts, then paying for agency repairs may turn out to be sheer foolishness.
Your Takeaway- Evaluate and learn if you require agency repair option in your comprehensive car insurance. Remember that most insurers’ network garages are as good as any premium garage.
Summing it Up!!!
Before you buy vehicle insurance in UAE, analyze your insurance expectations and thoroughly read the fine print of your insurance plan. When you know exactly what your plan offers and where it draws a line, you are less likely to fall for these myths.
In addition to that, knowing your policy inclusions and exclusions diminishes the risk of claim rejection.
In this article, we busted 5 insurance myths but there are plenty of floating around in the insurance market. Unfortunately, people tend to believe these assumptions and make bad insurance decisions.