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The Pitfalls of Buying the Cheapest Car Insurance

The UAE has an amazing global traffic safety rating in recent years. In fact, for five years the UAE has ranked number one for road quality. Traffic accidents are down 24.1 per cent from 2014 to 2018.

So why not go with the cheapest car insurance in Dubai that ticks all the boxes? While we advocate saving money where you can, “cheap” doesn’t mean inexpensive. It might seem you are saving money upfront with cheap, reliable car insurance. But in the end, it’s you who loses.

Do you know the top pitfalls of cheap car insurance? Keep reading to find out.

Your Car Insurance Doesn’t Cover Agency Repair

Major car accidents are down, but many more accidents go unreported every year than you might think. One of the biggest contributors is using a phone while driving. This accounts for over 27% of all car crashes.

Not having agency repair as an option is a huge pitfall. Car dealership service networks (agency repair) ensures that you get the best service and repair for your car.

Not having agency repair could reduce the resale value of your car. If people can’t guarantee that you are getting OEM parts, they wouldn’t want to pay OEM price for your car.

Agency repair is no longer required to keep your warranty as of 2016, according to the UAE’s Ministry of Economy. But since cars (especially EVs) rely more and more on proprietary technologies and software, it isn’t a bad idea.

The long and short of it is that going with the non-agency repair will hurt your bottom line on resale.

No Off-Road Insurance

The chances are high that if you have a 4-wheel-drive vehicle, you want to use it the way the manufacturer intended you to use it. Rest assured that Tokio Marine Insurance has your 4WD cover.

Dubai is full of fun-loving people like you, who can’t wait to go and hit the dunes. As you know, though, it isn’t all fun and games. Sometimes the road becomes the off-road, and you’re simply prepared.

Don’t wonder if your cheap insurance is worth it and argue with them about if you were on- or off-road during an incident.

Make sure the policy clearly states what is and isn’t allowed with your 4WD excursions. With Tokio Marine Insurance, the cover is only excluded if the accident occurred in competitions, safari activities, or events.

In general, wadi-bashing or dune-bashing isn’t covered in anyone’s policy. Travelling on unmarked roads shouldn’t be a nailbiter, though.

No Clear Compulsory Excess Statements

Some cheap insurance providers end up being more expensive than you thought. Why? Because they aren’t upfront on the excess or deductible.

The excess or deductible should only apply during an accident where there are no third parties responsible, according to a traffic court judgement or police report. In other words, where the accident is your fault.

Some insurance providers are a little sneaky about how they present and apply this. The premium you pay to the insurance company is there to cover the total value of your vehicle. The company then adds the excess on your schedule for every accident that meets the criteria.

If they don’t make their deductibles clear, you could owe a lot of money before any work even gets done. Having a higher level plan could reduce your deductible by nearly 60%.

Roadside Assistance Isn’t Included

What happens if you’re broken down on the side of the road with only sand dunes to keep you company? If you find yourself stranded between Abu Dhabi and Al Ain, you’ll be happy you bought insurance with roadside assistance.

Roadside assistance is one of those things you never think you’ll need until you do. A flat tire, an unseen object in the road, a sudden lane change, or just forgetting to put petrol in the auto—it’ll eventually happen to you.

No need to fret, the tow truck is coming. Petrol is on its way. If you get locked out, we’ll call a third-party service provider to get you back in.

Not to mention national ambulance cover. Not having ambulance cover should be the last thing on your mind in case of a major accident. Insurance with value will cover emergency services like this.

If there is a serious accident that includes the injury or death of the driver or passengers, your insurance should cover it. This protects your family against the loss of income and other expenses that a serious accident can incur.

Does your cheap insurance do that? Probably not.

Cheap Is Cheap: Don’t Skimp on Car Insurance in Dubai

Now you know what to avoid, do you still want to go with cheap car insurance?

Instead of thinking “cheap,” consider the value your policy will be bringing you. Many insurance companies bring a lower rate to the table because they have little or no practical help to offer when you need it most.

You need a car insurance policy and the best insurance company you can trust.

Tokio Marine & Nichido Fire Insurance Co., Ltd. has been a trusted name in the UAE market since 1976. It’s one of the largest and oldest insurance companies in Japan, going back to 1879.

Go with a highly valued provider. Trust us with your car (and your health). We invite you to contact us today to learn more