car insurance trends in the time of covid-19The global pandemic has impacted almost all aspects of life. Even car insurance has been affected! 

Primarily, due to the COVID-19 pandemic, motor Insurance rates have dropped across the board. Most insurance providers are now offering very competitive premiums, discounts, and different vouchers on comprehensive and third-party coverage.

With fewer cars on the road and fewer accidents, insurance companies don’t have to pay out as many claims. This has been a boon for the insurance companies. 

With prices at an all-time low, it’s a perfect time to choose great value for money propositions, and we’re here to help you decide.

 

Third-party Liability / Comprehensive Insurance, Which is the Right Option?

 

  • Third-party liability covers you against death or bodily injury to any third party/person and damages to third party property arising out of the use of your motor vehicle. More importantly, for clarity sakes, this policy does not cover any damage or loss to your car. Third-party is the minimum mandatory cover in Dubai, and it doesn’t provide coverage to your vehicle if it is damaged or stolen.
  • Comprehensive car insurance is one of the most preferred types of car insurance policies.  As it covers not only third-party liabilities and losses but also covers:
    • Own Fault, 
    • Fire, 
    • Theft, 
    • Riots, 
    • Natural Calamity, 
    • Earth Quake and 
    • Third-Party claim/damages, 

 

In essence, as more cars are on the road, the risk of accidents and injuries also increases significantly.

Since we all are gradually getting back to normal in the UAE and have started working from the offices again and people, in general, are using the car more – we highly recommend our clients to proceed with Comprehensive Car Insurance instead of Third Party Liability.  This is especially with the fact that it’s at a lower premium these days than in previous years and may not be this low for years to come. 

On top of that, there’s not much difference in the premium and spending a bit more can save them from paying from their pocket at the time of their damage claim.

We also noticed that many clients renewed their car insurance with Non-Agency repair instead of Agency Repair to save some money – where there isn’t a significant increase in rates. 

 

Why Do We Recommend Agency Repair?

We, as brokers, always recommend clients to go for a policy with agency repair where necessary.  In the world of car insurance, the term ‘agency repair’ provides you with the assurance that repairs are being done at the service network of the car’s dealership in the event of any damage to your vehicle. 

In some cases, the insurance company’s agency repair option inflates the cost of car insurance policies, and this additional cost has to be considered by the policyholder, and we can accordingly negotiate and advise. In addition to this, the insurance companies have certain conditions on accepting a vehicle for agency repair. This is often based on the age of the car, and in most cases, 3 to 5 years is considered the age limit.

The rates for agency repair increases every year as the car gets older; for example, if the vehicle is two or more years older, only a few insurance companies would offer agency repair rates.

With all these changes globally and locally, it’s essential to stay up to date and be on the edge of a great customer proposition.  There are opportunities everywhere, and it’s our job to find for our clients.

 

ihsan ullah motor insurance specialist

 

Ihsan Ullah

Motor Insurance Specialist

Fascinating Car Insurance Trends In the Time of COVID-19 Fascinating Car Insurance Trends In the Time of COVID-19

 

 

 

We promise to bring clarity to our clients, and we will, and we are here to help you get a new policy or even help with an existing claim. You can call us at 800-PETRA or drop us a line here. You can also reach us on FacebookInstagramTwitter and LinkedIn.