4 Common Reasons Why UAE Insurers Might Not Cover Your Car

Why UAE Insurers Might Not Cover Your Car

Hundreds of UAE residents visit ServiceMarketΒ every day looking for car insurance deals online. While most customers will receive dozens of quotes instantly, owners of certain types of cars might find it more difficult to find comprehensive insurance for their vehicle in the UAE. We have put together a quick guide below on which factors UAE insurers consider when providing car insurance quotes: Β 

Your Car Is Not β€œGCC Specification”

A β€œGCC spec” car is a vehicle that has been built to be sold in the Gulf region. Before buying a car in the UAE, it is highly advisable to check on this not so minor detail as most insurers categorically decline to provide comprehensive car insurance for non-GCC cars in Dubai, Abu Dhabi or any other Emirate.

But why? If the car that you are looking to buy was imported as a used car from the United States or another non-GCC country, there is a risk that the vehicle was involved in a serious accident and declared a total loss in its country of origin. In the past, many such cars have been imported and sold to unsuspecting UAE clients after basic repairs. Although these so called β€œgrey imports” have recently been banned by the UAE government, a considerable number of salvaged cars are still on sale in Dubai, Abu Dhabi and Sharjah. Getting an inspection report before buying a car is the best approach to avoid surprises. A quick look on the speedometer will also help to make the right decisions since GCC spec cars won’t show miles per hour!

Your Car Has a High β€œLoss Ratio”

All UAE car insurers analyze their claims data on a regular basis and many insurers look at losses on a car make and model basis. If certain car models are found to have been involved in a significantly higher number of accidents, insurance companies will either blacklist these models or quote only on case by case basis. This means that they will provide comprehensive insurance cover only if the car was never involved in an accident and only if the driver can prove a no claims driving record in the UAE.

So which are the least popular models with car insurers in the UAE? Based on acceptance criteria provided to us by insurance companies, we see that affordable high performance cars such as the Dodge Charger or Ford Mustang as well as US-made pick-up trucks such as the Ford F-150 or the GMC Sierra are the least popular models when it comes to car insurance in the UAE. In contrast, cars such as the Porsche Cayman or Cayenne will be relatively easy to insure in the UAE although these vehicles generally come with high performance engines as well.

Your Car Has a β€œGap In Insurance” Β Β 

If the car that you want to insure does currently not have comprehensive insurance, either because it is insured with a third-party only cover or because the previous comprehensive insurance has already expired, then this will be considered a gap in insurance. Such cars can be insured without issues as long as they are in good condition. It will be the customer’s responsibility to prove this however. Some insurance companies will accept pictures of the car as prove together with a self declaration form while other insurers will request an inspection at their premises. In any case, it is advisable to fix smaller damages before buying new insurance for your car to avoid problems with policy issuance. Β 

Your Car Is β€œToo Expensive to Repair”

You might find it difficult to buy comprehensive car insurance in the UAE if the cost of repairs is high compared to the overall car value. This will often be the case with older cars first registered in 2009 or before since the car value decreases over time but the cost of repairs doesn’t for most models. In addition, certain models are also less common in the UAE, so finding spare parts can be difficult and costly. This is particularly true for discontinued models or cars that are rare in Dubai and Abu Dhabi even though they might be more common in other parts of the world. The Hummer H2 or Saab 9-3 are good examples of such cars.

At ServiceMarketΒ we are committed to find the right insurance policy for every customer. Staying away from cars that could have been involved in accidents and maintaining a clean driving record will always make it easier to get the best coverage possible on the market. And where the value of the car has decreased over the years, a basic third party liability policy might be the better product to choose.

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