All drivers in the UAE are required by law to have car insurance. Each policy has to cover third party damages at the very least and more than 60% of drivers hold comprehensive car insurance policies covering damages to their own car as well. Buying the right policy is crucial in big cities such as Dubai and Abu Dhabi because, unfortunately, accidents are far too common a part of our road experience. It is important to be aware of the common reasons why car insurance companies in the UAE, and indeed anywhere in the world, would reject claims. Here is our list of top 5 reasons why an insurance company could decline to pay:
Hiding the Truth
Declaring false details to get a lower premium or get a policy in the first place is never a good idea. Examples include declaring a car as GCC spec (built to be sold in the Gulf region) even though it is an imported vehicle, declaring a wrong model/type or inaccurately stating that the driver has not caused an accident in recent years. All of these declarations will be checked at the time of an accident and every insurer has the right to refuse payment if important information of the car and the driver are found to be incorrect.
Check What You Pay For
When buying insurance, UAE residents often focus on price. However there are significant differences as to what each policy covers and up to which limits an insurer will pay damages. Customers often do not check their car insurance details until they have a claim. Depending on the insurer and product you might not be covered when driving off-road or driving across the border to Oman/Qatar. Even comprehensive car insurance policies can exclude damages to your windscreen (if no other part of the car is damaged), damages caused by storms and floods or theft of personal belongings from your car.
Breaking the Law
A car insurance company is highly unlikely to accept a claim if at the time of the accident the driver violated the law, for example by being intoxicated, driving without a driving licence or driving on a road closed to traffic. Not only can accidents caused by irresponsible or impaired drivers lead to large fines, arrest and even a prison sentence. The offense will also be on the driver’s record, making it hard or very expensive to buy car insurance in the future.
Exceeding Limits
Every policy has its limits and even if you are covered for a certain type of risk, the insurance company will not pay for the full loss if a particular limit mentioned in the policy has been exceeded. Benefits such as rental car cover and key replacement will typically only be covered once during the term of the policy. There are also considerable differences among insurance providers when it comes to limits for covers such as emergency medical expenses and personal belongings in the car.
Time Is Money
If you find yourself in an accident, you are well advised to claim the damage from your insurer as soon as possible. Some car insurance policies have clauses that will allow the insurer to decline a claim if it wasn’t reported in a timely manner. Also, damages caused by accidents can lead to further mechanical problems over time if the initial damage is not fixed quickly. Insurers are likely to decline a claim if the damage isn’t directly caused by a reported accident.
To sum up, when buying car insurance in Dubai, it is important to check the covered risks and limits upfront to avoid surprises when filing for a claim. And providing accurate information about yourself and your car is as important driving responsibly. Still, most comprehensive car insurance policies in the UAE will provide coverage for a wide spectrum of risks and you can drive with peace of mind if you stay within the terms agreed with your car insurance company in Dubai.
