Car Insurance

Car Insurance Myths in UAE

October 8, 2018

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Cars are highly preferred in UAE rather than any other vehicle, and therefore the car insurance market has a massive increasing activity at present.

The price of insurance varies depending on many factors along with the money cost used as the compensation during the period of unlikely issues or events.

Choosing the right car insurance in Dubai is strenuous substantially for the new insurance buyers, people believe in wrong myths from various people and result in wrong decisions, but this is one of the essential topics that shouldn’t be ignored when you are spending much money on the car insurance policies.

Related: Apply For Car Insurance from Compare4Benefit and Get VAT FREE Car Insurance.

List of Car Insurance Myths in UAE

Today we will check for a few myths regarding the car insurances that everyone should be aware of it.

Medicals bills are covered for a significant accident or other issues in the case of the applicant having a Personal Accident Cover.

Many First time buyers of car insurance in UAE has a belief that getting a Personal Accident Cover while purchasing car insurance will take care of their medical expenses occurred when they get injured in a road accident, and this is not true entirely! Moreover, here are few payouts which will be provided to the people in a lump sum once confirming after an in-depth diagnosis.

- Personal Accident covers are provided in the case of any preconceived peculiar injuries or damages, and if you capitulate to any lesion or any other injuries in a road accident, then Personal Accident Cover will offer a total amount of money that you have insured to your family and the maximum sum is about AED 200,000.

- If you have lost your eyes and gone blind due to the accident occurred in the road then personal accident cover will provide a maximum sum of about AED 100,000 for each eye lost in the road accident.

- If you lose a limb during a road accident, then you will be provided with the maximum amount of AED 50,000 for each limb.

Your Takeaways: If you got injured during an accident, you would not be able to get the medical coverage just showing your insurance policy documents at the hospital. You need to have a health insurance plan if you need to skip paying from your pocket.

Comprehensive Coverage is Offered in GCC Cover

Most of the gold and car insurance companies provide these universal feature GCC cover for their customers, but it has the capability of covering just the partial benefits.

You will not be eligible to drive to any other GCC Country if you have this GCC cover in your insurance policies. You need to face the drive only at your own risk as they don’t cover financial safety.

Your Takeaways: Every car owners should have to get the insurance for the vehicle they buy according to the UAE law, and therefore the insurance policies have become a mandatory one. GCC cover does not cover any third party liability, so you don’t have permission for driving off to any other GCC country.

You will be required to get a TP insurance on the border at a rate of AED 90 for five days.

Comprehensive Insurance plans do not cover mechanical Repairs:

The standard and most natural myth around any car insurance are that mechanical repair costs are not included in any comprehensive programs in the case of any injuries or during the car breakdowns.

Your Takeaways: The critical thing every car insurer need to have in mind is that you shouldn’t believe everything you hear from people saying regarding the insurance plans. Any of the car insurance agents will not cover mechanical tear & wear and depreciation in their plans. Automobile parts are included based on the depreciation rate when your vehicle is damaged in an accident or during your car break down in this comprehensive insurance plan.

Your car dealers will provide best Insurance Plan

When you are purchasing a new brand car, everyone thinks that they can get the best insurance plan from his or her car dealers, but this is never a good or best idea.

You will not be able to get the best deal if you are purchasing any insurance plans from any car dealers, insurance brokers or insurance agents offline.

They will change your mind and make you get the one as per their preference, the best thing you need to do before purchasing a car insurance plan is to research, compare and then get the best insurance plans for your vehicle.

The technology advancement has brought an enormous change in the digital insurance field too, and the best way is to get the insurance is online. You will be able to avail many benefits like more transparency, ease of buying, wide varieties of insurance, etc. and also save your time and money by getting online.

Insurance for your vehicle is something you need to check out directly rather than purchasing from offline or other ways. If you are getting insurance from your car dealers, then you might need to pay a high commission for them.

If you are purchasing insurance online then you will be able to get multiple benefits as there are various plans available, you can compare and choose the best deal.

Your Takeaways: You will be able to enjoy maximum coverage for your insurance without paying from your pocket, the price you pay should be useful for you not for the dealers or brokers.

A Must have Feature- Agency Repair?

The critical specification included in the comprehensive insurance plan is the Agency Repair, this will cover maximum accident-related repairs from the official dealer at the authorized garages. The premium is high for the comprehensive coverages as per the enhanced support, and you can opt or not opt to agency repair as the decision belongs to you.

If you need any spare parts installed in your car or any other vehicle after any accidents in the case of a luxury car, then you can prefer agency repairs. If you have the spare parts available for your generic vehicle then paying for the agency repair is mere foolishness.

Your Takeaways: Before you go for any agency repairs you need to check whether you need them in your car insurance plans. More than the premium garages, the insurers’ network garages will be the best option.

Before opting for any UAE vehicle insurance, make sure you analyze the insurance needs and then check out the insurance plans fine print. If you have a detailed understanding of the plan, you never have to fall for these myths.

Knowing about the policy exclusion and inclusion declines the claim rejection risks.

Want to know more about Car Insurance, Read Our Complete Guide on Car Insurance in UAE

Any other myths regarding the Car Insurance Plans.

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