There are a whole host of car insurance companies in the Emirate of Dubai and each one differs significantly in their strengths, abilities and target markets. This also therefore leads to differences in the covers offered and the pricing points. This article is an informative piece that describes the differences, the rationales behind them and how the policyholder can make sure that they find the best possible product for themselves.
Firstly, it is worth clarifying that a car insurance company is one which is the end-risk-taker – they may not necessarily carry out the sale to the end client – and usually the policy issuance and claims service is taken care of by an independent broker and advisor that guides the car owner towards the appropriate policy based on their profile and requirements.
Essentially, there are over fifty-five insurance companies in the UAE – and a vast majority of them do offer motor insurance. There are some well-known multinational giants like AXA, Chartis and Zurich while there are some much smaller lesser-known local companies. There are also some giant local companies such as Arab Orient, ADNIC and Oman Insurance whom together cater to over a quarter of the UAE insurance premium market share. Recently, a whole host of Takaful companies have come up with unique Islamic insurance (i.e. Sharia compliant) products – some names include Salama, Aman, Methaq and Noor Takaful.
However, when it comes to car insurance, only a few companies focus on their offering as a key target market. Indeed, each insurer would also have their preferences in terms of driver profiles – some, for instance, like only Western expatriates with transferable licenses while others would only quote competitively if a No Claims Certificate is provided. Some insurance companies work well with certain make or models of cars while some have a broad preference towards four-wheel drives rather than sedans or coupes or vice versa. Indeed, there are some insurance companies that don’t quote for drivers aged under 30!
As a result, when buying car insurance in Dubai or anywhere in the UAE for that matter, it is strongly recommended to approach a trusted insurance broking company that specializes in car insurance (i.e. they must have a dedicated team for advisory services and claims; with an appropriate infrastructure, garage network and service proposition/commitment). They would make sure that you are recommended the right policy at the best possible price (because of their bulk buying powers) and would usually provide prompt service to get your policy to your email inbox at the earliest so that you may register your car at the RTA. The right insurance broker would also take you through a comparison process highlighting key differences between products – which would help you decide your route in minutes.
In terms of performance, car insurance companies in Dubai have recently struggled with their profitability as a result of falling rates due to increased competition. Worryingly, this means that in order to sustain themselves, many insurers are now looking to control claims cost rather than provide better service. In such a scenario, also known as a ‘soft market’ in the insurance world, it is generally found that quality of repairs largely tend to deteriorate significantly and the time lags in processing claims or other documents also increase – making things inconvenient for the policyholder.
As a result, it is always recommended that a right insurer is chosen when purchasing car insurance in this part of the world and more importantly it is crucial to have a responsible insurance broker by your side to represent you and appropriately serve you at the time of a claim. A good insurance broking firm would use their technical expertise and experience of the business to protect the policyholder and have their claims paid when the insurer’s are busy ‘digging’ to find ways not to pay as a result of the ‘soft’ market challenges.
Alfred’s Insurance Market is a great way to buy car insurance in Dubai. As the online channel of the reputed AFIA Insurance Brokerage Services LLC, in business since 1995, we independently and rather promptly serve you with various trusted options for your requirements and also represent you and protect your interests at the time of a claim. Please visit us on http://www.insurancemarket.ae now! Follow us on Twitter.