Even before you drive out in your brand new car from the showroom, you pay a hefty amount for car insurance considering it will cover unexpected expenses for you and will not put a dent in your pocket later. However there are a lot of questions you aren’t clear about the car insurance. So here are the top 6 car insurance myths busted and answered for you. Read on!
Car owners in UAE pay certain amounts annually in registration and insurance costs. However, some myths prevail among vehicle owners like: will the insurer pay medical bills? Will the insurance cover things like Oman coverage, agency repairs, etc. Or, should you buy insurance directly from the dealer?
Here is an analysis from the comparison website yalla compare that strives to clear the air for car owners about car insurance.
- Do accidents cover your medical bills?
Unfortunately the answer is no! Because your car insurance policy won’t cover your hospital charges like your health insurance policy will as there are only few injuries that occur due to a car accident are covered under car insurance. So when you tick the box for additional personal accident cover when purchasing car insurance, it will only cover amounts to lump-sum pay-outs in the event of very specific injuries.
- Oman cover doesn’t entitle you to drive in that country
GCC-wide cover is a common feature of most gold car insurance packages, but what most people fail to realise is that this type of cover doesn’t actually allow you to legally drive in another GCC country. This feature only offers you protection against ‘own damage’ – i.e. damage to your car that you’re responsible for. However, with this sort of cover, you’re not insured for third-party damage, which is what makes driving in another GCC country with no other type of cover illegal. So if you’re going on a road trip to another Gulf country, you should buy basic cover from a local insurer at the border.
- Mechanical repairs aren’t covered by your insurance policy
Another common misconception about motor insurance in the UAE is that your fully comprehensive policy will cover the costs of mechanical repairs in the event that your car breaks down. Unfortunately, that isn’t the case! Mechanical repairs may be covered if they’re needed after an accident. What’s not covered, though, are general mechanical repairs that are needed if your car breaks down or has fallen into a state of disrepair. For that, you’ll need a warranty from your dealer.
- Your car dealer is very unlikely to give you the best insurance deal
We all fall prey to comfort where we don’t want to run around and wish everything is done for us and such a convenience is given by a car dealer who supposedly arranges car insurance too. But insurance is one thing you should keep under your own control, as the margins that dealers charge on these insurance policies are out of this world and if you do it on your own you could be saving a huge amount of your insurance.
- Agency repair isn’t all it’s cracked up to be
One of the most sought-after features for fully comprehensive policies is agency repair, which means that if any repairs are needed for your car after an accident, the insurer will pay for the official dealer of your car to carry out these repairs. The problem with this, of course, is that policies featuring agency repair tend to be more expensive than non-agency repair policies. There are plenty of good non-agency repair offerings — you can even opt for a premium garage add-on.
- High valuation on your policy document isn’t always a good thing
It may be tempting to insist to your insurer that your car is worth more than the number it has been valued at, but in reality it’s not correct to value the car at the number you bought it for. Firstly, if you’re insuring a car at a higher value, you’ll end up paying more for your policy, and secondly, the car value mentioned on the policy document only comes into play in the event of a total loss – which is a rare occurrence.