Buying car insurance in the UAE can be a confusing chore, especially if you’re doing so for the first time. However, it’s not something to be afraid of or daunted by. Whilst there are some fairly obvious do’s & don’ts, there are a lot of car insurance myths & misconceptions too. The fail-safe formula is to do your homework and ask the experts.
Luckily, securing the best car insurance in the UAE is a relatively simple, straightforward process, with a wide range of providers and plans to choose from. This blog busts the top car insurance myths to set you on the road to finding the right car insurance for your needs and budget.
AUTO INSURANCE MYTH #1: You Can’t Transfer Your No-Claims Bonus
FACT: You absolutely can! Your no-claims bonus belongs to you as the driver as it relates to your auto insurance driving history. So, if you’re changing your vehicle or changing your insurer, provided you have official bonus proof, your NCB is portable. The only time NCB is not transferable is when you are trying to shift it to another person.
AUTO INSURANCE MYTH #2: Older Vehicles Don’t Need Insurance
FACT: Car Insurance in the UAE is mandated by law meaning it’s compulsory for all cars irrespective of age. Failure to have a valid insurance of least Third-Party Liability coverage means you are committing a criminal offence punishable by law. It’s entirely down to personal choice whether to cover your car itself for accidental damage, theft etc by way of a Comprehensive Motor policy but as a minimum, Third-Party Motor Insurance is a must.
AUTO INSURANCE MYTH #3: Comprehensive Car Insurance Covers Everything
FACT: This is probably the biggest car insurance myth! Like all insurances there are some types of loss, both physical and financial, that won’t be covered, so don’t be fooled by the name “Comprehensive”. Always check the policy for what’s not covered under the section called “Exclusions”: these typically include things like depreciation in value, wear and tear, consequential losses and driving whilst under the influence of alcohol or drugs.
AUTO INSURANCE MYTH #4: Car Insurance Covers for Road Traffic Accidents Only
FACT: Another car insurance myth is that if you purchase a car insurance policy it only covers you when you are driving on the road and have an accident. This is true to a certain extent if you have Third-Party Motor Insurance but even then, it will only cover you for the damage you do to someone else’s vehicle and not your own. If you’re involved in an accident for you which you are judged to be at fault, your own vehicle’s damage will only be covered under a Comprehensive Motor policy. The good news with this type of policy is that your vehicle is covered both on and off the road for other risks too, such as:
- Fire
- Flood
- Malicious Damage
- Accidental Damage
- Theft
That’s why we always recommend taking out a Comprehensive Motor policy as it really offers peace of mind for not much more money!
AUTO INSURANCE MYTH #5: Buying Car Insurance Is A Big Hassle
FACT: Searching for the right car insurance is no longer a difficult or time-consuming task. The advent of online platforms, comparison websites and friendly call services make it altogether a much simpler experience than ever before: especially if you use one of the larger, respected car insurance providers in the UAE. In just a few clicks or a quick chat, you can secure the product that best suits you and get your policy documents delivered to you by email within minutes.
