What, Where, Why, Who – Car Insurance in Dubai

Image source: livingindubai.org

Image source: livingindubai.org

Here are a few frequently asked questions about car insurance with quick and easy answers:

  • What is the difference between renting a car for your pleasure or renting a car to use because of an accident?

The rental vehicle is usually paid for by the insurance company. The pleasure rental is paid for by you.

  • Why are the rates for young men usually more than young girls?

Men usually show off a lot more than the girls do and rack up more speed tickets and accidents. That being said, woman drivers are getting more traffic offenses than ever. Depending on the Country, distraction offenses are rising on cell phone use.

  • Why is a Ferrari so expensive to insured?

Price, make, model, all the accessories and the top of the line materials used for each and every car

  • Tell me what is the difference between an Insurance Agent and an Insurance broker?

A broker has many companies that have access too, an agent works directly with one Company. 

  • What is the difference between a CSR and an Insurance Broker?

A CSR usually works in the office writing new business and assisting client with questions. An Insurance Broker does basically the same job, but they are on the road most of the time looking for business outside the office.

  • What’s the difference in rates if you are a young driver and don’t take a driver training course?

The course itself is around AED300 and up.

A young driver in the first year of being licensed may have to pay AED3000 with no experience or no driver training.

A young driver in the first year licensed with driver training would probably pay $1500. There are other factors however, just this one example, pays for the course the first year. 

  • Who sets the rates, the CSR, The Insurance Broker or the Insurance Agent?

None of the above. Insurance is regulated by a Government Authority. The people above must use the rates set by this rates approved.

  • What is the rate difference between a 2 door and a 4 door vehicle?

The 2 door models are normally higher as they tend to be  more of a sporty design which young drivers are attracted to buying.

  • What is the difference between an uninsured driver and a person being under insured?

Uninsured is when there is absolutely no insurance on the vehicle. Minimum amount required to drive. This is a problem if you are involved in an accident with this person and your injuries and damages exceed the coverage carried by the third party.

  • What happens if I have tickets for speeding or any other  driving infractions on my license?

Depending on the number of tickets, the company could charge you a higher premium.

  • What is the difference between the lessee shown on the policy and an lessor?

If you are leasing a vehicle from a dealer, the lessee is you, and the lessor is the Company leasing you the vehicle.

  • On an auto application it asks ‘has the vehicle been modified’. What does that mean?

If you have modified your vehicle, as an example, put in a higher HP of motor, or put the off road tires on it, or changed the vehicle from way the original vehicle was built.

Come and visit InsuranceMarket where your dedicated personal shopper can help you with any queries pertaining to your car insurance in Dubai.

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Questions to ask your Broker when shopping for car and home insurance in Dubai?

Image source: dubaimetro.eu

Image source: dubaimetro.eu

Auto Insurance Dubai:

  • Why have my rates gone up when my vehicle is older than last year?

The premiums are not only based on the vehicle itself, they are based on driving experience, driving record and previous accidents.

  • What can I do to bring the cost down?

Ask your broker about any discounts you are qualified for this year or  if you can change any type of coverage like a deductible.

  • Am I qualified for any additional discounts this year?

If you have you home insured with your auto, you can get a multiline discount and possibly more.

  • Why are the rates so high for my son?

Most statistics show that young drivers, are involved in more accidents than those with more experience.

  • My car is only worth AED 10,000, why is my comprehensive insurance AED 1000? That is a 10% rate.

Comprehensive insurance in Dubai is subject to minimum premiums which must be charged regardless of car value. This is usually around the AED 1000 mark.

  • What are these new medical benefits? Are they mandatory? If you only had one question you could ask your broker, this would be it.

Accident Benefits are a very complex and you will find there are    different layers consisting of injuries, medical care, long term health issued. You should call and make an appointment with us for a breakdown of what coverage you have.

  • Can I increase the limits and the deductibles on my policy?

Yes to both, sometimes any additional premium is wiped out by the credit you will get increasing your deductible.

  • Does the alarm system on my vehicle lower my rates?

Yes, but in two different ways, first, the alarm system put in the vehicles by the manufacturers; have already been taken into consideration when originally assigned a vehicle code. Secondly, alarm systems you put in the vehicle will probably give you a discount. It is wise to check with your broker to find out the make of the system, as some do not qualify.

Home Insurance Dubai:

Image source: emirates247.com

Image source: emirates247.com

  • Does my coverage allow me “new for old” personal belongings

Yes within reason. It is best to video your inside belongings and keep receipts for high value items.

  • Do I have the highest Liability Coverage in case someone sues me?

This is very important. If you feel you need more coverage, and you are already at maximum limit, inquire about an “Umbrella or an Excess Liability” policy.

  • What if I have to leave my home because of a fire. Would my temporary living costs be covered

Most homeowner polices do have that type of coverage built in to the policy. That coverage is worth the premium in itself.

  • Are there any discounts on the home policy?

Yes, if you insure your home and auto with the same Company. Each company has its own.

  • I have expensive jewelry. Is there a limit on the policy.

There are limits with different insurers, your broker will be able to give you the advise you need to insure jewelry properly.

  • Do I have the best rates or is there another company that has lower rates that I can move to?

We provide the best coverage and rates of any insurance company in the area.

  • If I have an alarm, do I get a discount.

Yes most insurers will offer an alarm discount with receipt of an Alarm company certificate.

  • If I am traveling, should I have someone checking my home?

Yes, you should not leave your house unattended for more that 4 days. Other than the obviously reasons, the concern is the water pipes are not leaking.

Liability Insurance Dubai

  • My dog bit the guy next door, he said he may sue us. Do we have coverage for that?

This is the type of situation that you need the personal liability insurance.

  • I knocked over a glass of red wine on my neighbors carpet – can i pay for the cleaning under my policy

This would fall under your homeowners personal liability for property damage.

  • I drove my car into my neighbors garage, he is not happy.

Yes there is coverage; it would be paid through your auto policy.

  • The tree in my back yard fell on the same neighbors pool, and now he is really unhappy.

Yes, you can inform him that your insurance will take care of the damage.

You can visit insurancemarket.ae to learn about the best deals on your car or home insurance in Dubai.

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Being Frugal Rocks – Saving Dirhams on Auto Insurance in Dubai

Image source: thenational.ae

Image source: thenational.ae

What is my car insurance premium?

Those six words are probably said everyday by someone when they open their auto insurance renewal. It comes as a complete shock if it has increased because they have had no accidents, no traffic tickets or no claims.

Many say, it is, what it is. Well it’s not. There are consumers who are to busy to worry about it. They just let the payments come out of their bank account each month. There are others who do call, and are given that global excuse that the rates have gone up everywhere. Many consumers get angry but do not inquire any further. This is the point that you should start asking questions. Don’t ever feel intimidated or inferior when calling your broker, they will explain the legal jargon to you. It is their job.

Having had hundreds of people call me and ask me that question over the years, I probably have saved people enough money over the years to buy a car, a boat, maybe both. Here is a list of the questions you need to ask your broker.

  • Do I get an age discount?

Many Insurance Companies are starting to offer age discounts at 50yrs. The rate usually starts at 5% and it increases every 5 years. When you turn 55yrs, it should increase to 10% .

  • How is my policy rated?

Insurance premiums are set with many variables. One is the cost of driving to and from work. If you are not driving to work, be sure to ask about that. There are low mileage discounts are available for you.

  • We only have one car, but my son lives at home and has a car

Each Company differs, however they will usually give you a multi-car discount if he is insured with them, plus he will get the same discount plus an additional multi-line discount.

  • We have a home policy with you, do we get a discount for that?

Yes, discounts for insuring your home and auto together is usually about 10%.

  • My husband and I are retired, is there a discount for that?

If you are retired, there is a retiree discount that you should get on top of the age discount.

  • Do I have to pay a service fee to take advantage of the monthly payment plan?

Yes, the service fee is usually around 5% of the total premium. That can be a lot of money if your premium is high. There is usually an alternate pay plan which is set up 40/30/30. You would pay 40% when it is due, 30%,three months later and the remaining 30% three months after that.

  • Is there any coverage we don’t need on the policy?

Yes there is optional coverage, but get your broker/agent to explain all the pros and cons before deleting anything.

  • Do we have an accident protector endorsement on the policy?

Ask to make sure you do have this coverage. If not, ask them to add it to the policy. It may cost $50, but if you have an accident, without it, your rate will drop and you will pay hundreds over the years.

  • We have been with this Company for many years, do we get a loyalty discount?

Yes, there usually are loyalty discounts and new business discounts if you go to another Company.

At insurancemarket.ae we work very hard to get you a better deal!

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Auto Insurance Secrets

Image source: reaach.com

Image source: reaach.com

If your vehicle stops working and its time for a new one, notify your broker. If it is a short term situation where your new vehicle purchased will be delayed for 6 weeks or so, you may be able to suspend your coverage until the new one arrives. The reasoning is that you should never have a lapse in your insurance policy. You do not want to cancel your insurance and then have to write up a new policy. If you do cancel your policy, you would have to start all over again with all the paper work and payment plans. One last important issue, if you have had an accident over the last year, you will have to declare that accident, which could result in a higher premium.

If you have an at fault claim, there is usually a deductible that you will have to contribute for the repairs. If you agree to have the vehicle fixed in a way that it is going to save the Company money, the adjuster may agree to lower the deductible for you.

If you have a claim which effects both your home and automobile policy at the same time, ask about being able to pay only one deductible rather than one for each policy.

Add your son or a daughter to your policy as an occasional driver, it would be well worth the money to do so. Once they get their own vehicle, they will have the experience behind them which will result in a lower rate once they purchase a vehicle of their own.

***If you work for an employer who offers a benefit package, review and compare the coverage that they both offer. If there is an accident, your benefit package at work will be the first to respond to coverage. After that has been used up, your auto insurance coverage will then kick in to provide the coverage available from your auto policy.f you are a young male driver, it pays to look into the rates before purchasing a policy. Rates come in different classifications. A 23-24 year old is much less than a 21-22 year old rates. If you are 22yrs old and your birthday is the following week, there could be a big different from 22yrs and 23yrs. You probably should wait that one week.

The same idea for traffic convictions or accidents. The date is going to make a huge difference. If you have a traffic violation that will be off your record in a week, delay the insurance until after it is gone. The premium will be much lower.

The rates for a male driver under 25yr is less if he is married.

Having an approved driving course makes a noticeable difference in your rates. If you do not participate in one, the rates will be higher.

If you have two vehicles, the rate will be different if you are driving to and from work, drive the less expensive car to work to save on the premium.

Sometimes, you can approach an insurance company about making a change mid term. This is not like a vehicle or address change, this would be something like lowering your rate because you have turned 25years old or because a traffic offence has been removed. The Insurance Company will probably agree to the change.

There are always way to save on your auto insurance rates. You just need to keep on top of it and always speak to your broker. They are your friends in the Insurance Industry and will always have your back.

*** Corporations and business offer excellent benefits to their employees. The Insurance Company is aware of this medical package so they partner with the employer to offer discounted rates to their employees. They agree on the terms and start up offering Group Auto and Home Rates

Why this works. – An example would be – The Auto Workers have their own benefit package. It offers thousands of dollars for care, illness, and accidents. If you are involved in an accident, your employee benefits kick in to start your coverage. Once those funds are exhausted, only then will the Insurance benefits continue to pay the cost needed up to your limits.

Come visit insurancemarket.ae and we’ll use our several secrets to help you maximize the benefits from your auto insurance in Dubai.

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Commercial Automobile Insurance

Image source: thenational.ae

Image source: thenational.ae

If you are using a vehicle for use in your business, you must carry commercial automobile insurance. The coverage on a commercial vehicle, is almost the same as the insurance provided by a personal vehicle.

Commercial Insurance is required all vehicles used in your business. If you have more that 4, you would probably qualify for Fleet Insurance. It insures all the vehicles on one policy and depending on the insurance company, the premium for the policy can be much lower than insuring them separately.

Type of Vehicles

There are many types of vehicles that can be insured under a fleet policy. A few examples of these would be, delivery trucks, dump trucks, tractor trailers, cars, tow trucks and the list goes on. If you have a large company with various types of vehicles, it may be worth splitting them up in groups. An example would be – all tractor trailers on one policy and all your delivery trucks on another policy. This is a great way to make the most of all the discounts being offered on a fleet policy.

What is the Difference – Commercial or Business Vehicle?

If you own a business and drive your vehicle everyday for work, it would be considered business use. This would also include any cars driven by the owners, sales people, managers etc. If you need to make use of a vehicle (s) to complete the work you have been hired to do,  it would be classified as a commercial vehicle.

What Kind of Coverage is Available on Commercial Auto Insurance Policy? 

Commercial automobile insurance is really no different than personal insurance. The vehicles are rated differently because of their use.  All the mandatory laws set out for personal insurance applies to a commercial vehicle.  There are different endorsements that can be added to the policy to extend the basic coverage to include your needs. Mandatory coverage would include-

  • Third party Liability -This is the most important insurance you need to operate your vehicle. It is mandatory but without it, one accident could cause financial ruin for both your business and your personal business. You need to carry the highest limit of liability available. It insures you for any damages or injuries that you have caused another driver.
  • Accident Benefits coverage – Accident Benefits coverage is mandatory coverage which provides compensation for any type of injury that may be needed after an accident. It does not matter who is at fault, your insurance company will automatically respond to any need required for injuries. It would include medical and rehabilitation, loss of income, disability or death. Accident Benefits vary by location, and may be unique to your area.

Uninsured or Underinsured

The uninsured  – If you are involved in an accident with someone who has no insurance, your policy will pay for what ever coverage is required. Underinsured is being involved with another driver who carries the bare minimum coverage available. There are endorsements available that can be added to your policy to increase the coverage to the limit you have on your policy.

Direct Compensation – Property Damage

Direct compensation is coverage is used for an accident that is not your fault. There is no deductible required for repairs.

Collision coverage

If you are involved in an at fault accident, you would use your collision coverage to pay for repairs of your vehicle. It is subject to your deductible. This is an optional coverage, unless you have financing or are leasing a vehicle, then it becomes a mandatory coverage.

Comprehensive coverage

Comprehensive coverage, like Collision, is optional unless you have financing or leasing on the vehicle. It protects your vehicle against loss or damage resulting from something other than a collision like,  Fire, theft, flying objects, vandalism and windshield.

Family Protection coverage

This is the endorsement required to extend your coverage up to your own limits of coverage if the other party has base limits.

Commercial – EXTRAS

There are specialized endorsements that can be added to your policy depending on what the use of the vehicle. An example would be – cargo being shipped across the border or additional rules on machinery and/or equipment.

Meet Alfred to learn more about our solutions for business vehicles.

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How Insurance Companies Are Trying To Save Costs

Image source: dubaicity.olx.ae

Image source: dubaicity.olx.ae

Why is it so expensive to insure a high priced vehicle in Dubai. For the most part, it is the make of the vehicle and the cost to repair it or if it has shown to have a high injury rate.

Insurance Companies are trying to reduce their costs as much as possible for the consumer. There are a few ways behind the scenes that most do not know about, but it is making a difference.

  • They have partnered with various auto dealers and repair shops. If  they need a vehicle repaired, it would be sent to  one of their approved shops for repair. The cost of repairing a vehicle would be less than if they sent it to an independent repair shop.
  • Double Dipping – If a vehicle is involved in an accident, the tow truck drivers on the road, are ready to swoop in to be first in line to assist the driver. They will hook up the vehicle and take it to one of their  repair shops, for repairs.

A scenario would be, someone has had an accident on the highway, say Emirates Road. A tow truck driver shows up and waits for the police to come, the police take a report and release the vehicle. The tow truck driver offers to help you take your car to a repair shop that does excellent repairs. Sounds good, you agree and the driver hooks up the vehicle and tows it to the shop that they use. If that repair shop is not an insurance approved shop, the Insurance Company may want it towed over to one of their shops. Hence, double dipping or double towing charges.

It may not seem to be that much money, but over a year, it does add up.  If you look at 15,000 accidents over a year at AED 200.00 a tow, that would be AED 30,000. If the car had been taken directly to a Company sponsored garage, it would have saved the Company AED 15,000 to be used elsewhere. A small note here, check for storage fees if the vehicle has to stay where it is overnight.

The same reasoning behind having their own Garage affiliates, it saves huge amount of money and they can give their customers a guarantee on the work. It also allows for a quicker response for repairs and immediate rental vehicles if needed, by the customer.

One other way that all insurance companies are saving money is on the processing of documentation. All Company websites have been set up so the brokers have access to their portals. The can write up new policies, changes, claims, or cancellations. They have streamlined their work flow so the brokers are actually doing all the processing.

It is a good business decision. A large portion of the processing is now being done off site, which leaves them more efficient in staff hiring, or for future endeavors down the road.

You can meet Alfred if you wish to benefit from the most efficient way of buying car insurance in Dubai and across the UAE.

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Car Insurance Myths – True or False

Image source: telegraph.co.uk

Image source: telegraph.co.uk

Auto insurance can be very complicated for most people. Like many legal documents, there is a lot of small print on the application. My guess is even if you could read it, you probably wouldn’t understand most of it. It is just legal lingo. This is where your broker or agent can be very helpful. Here are a few myths, some have been around for years.

Myth: Red cars are more expensive to insure

False: It does not make any difference in the premium. High performance cars always seem to be the color red. The price for that type of vehicle was high. You could have a silver corvette and a red corvette and the rate would be the same. 

Myth: If you’re under 25, shopping around for car insurance is a waste of time

False: Each Insurance Company has their own rates. There are some that do charge a higher premium for anyone under 25 years of age, and then there are some that do not.

Tip:  There are Insurance Companies that will add your kids under 25 to your policy. This is great platform for them. It gives them a written insurance history. Their experience driving periodically with your vehicle, will allow them the best rates when they take out their own auto policy.

Myth: Your insurance covers you when you use your car for commercial or business

False: – If you are using your vehicle for any type of commercial use, you would not be covered. Your policy will state  ‘personal/private use”. That is what you signed on the application. If that changes, you need to talk to your agent.

Myth: Your rate will go up if you get into an accident

True:  If you were in an accident that was not your fault, then no, yours rates should not increase (significantly). If you were at fault, yes your rates can increase. Check with your agent. * Some Companies will offer to give you the option of buying an additional rider, that would allow a free accident. That means, the first accident does not count.

* This would only be useful to you with your present insurer. If you move your insurance to another Company, they would base your rate on your driving record.

Myth: If your friend borrows your car and wrecks it, his insurance covers it

False: It is your Insurance. Not your friends insurance. You will have to take care of the damage using your own policy. Be careful who you lend your car too. If they happen to be unlicensed, been drinking or drive carelessly, you will be responsible for all damage or injuries to another party.

Myth: An Auto Insurance Company can charge what they want because auto insurance rates aren’t regulated

Image source: dubaicity.olx.ae

Image source: dubaicity.olx.ae

False: There is a regulator watching closely and moreover it’s a competitive market in the UAE so even if they could charge whatever they wanted they’d need to make sure that they’re in the right range if they want to win any business!

Myth: My rates will be similar to my neighbor’s rates

False: Definitely not. There are to many variables involved determining the premium. An example, make, model of car, your age, your driving record and much more.

Myth: “Comprehensive” coverage protects drivers in all situations 

False: Comprehensive coverage does not protect drivers. It is the coverage available for fire, theft, vandalism and a few more.

Myth: If you swerve to avoid hitting an animal on the road and go into a ditch, it is classified as being a not at fault accident 

False: Though unusual in Dubai, this does actually happen! Unfortunately, it is classified as an at fault accident.  While I hate to say this, and totally do not understand the reasoning behind it, they say you are better off hitting the animal. You will still have to pay your deductible, but the Company will consider it a not at fault accident.

**Just a little sidenote – If you have seen the damage that a camel standing on the road can cause to your vehicle, I would take the ditch. The heck with the insurance issue.

Myth – It does not matter if I go to an Insurance Agent or an Insurance Broker, my rates will be the same

False: An Agent works directly with one insurance Company. A broker works as a representative of many Companies. They have more options to offer their clients.

Everyone has an opinion about car insurance in Dubai. Some are correct in their assumptions, other do not have a clue what they are talking about. As a driver on the road, it is your future you are putting at risk. Be prepared and keep yourself informed with all aspects of Insurance. If you have a question, call your broker for the correct answer. The guy across the road is probably just blowing hot air about his rates. Or, come see us at insurancemarket.ae!  

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