First-Time Buyer Mistakes to Avoid When Choosing Car Insurance in the UAE

Car Insurance

In the UAE, the motor insurance market is rapidly expanding due to the country’s growing population and strong economy. Two of the most essential factors influencing its expansion are rising car ownership in the UAE, along with increased road accidents. Did you know that in 2025, the car insurance market in the UAE is expected to acquire a market size of US$1.45bn? (Statista: UAE Motor Insurance Outlook). This fact indicates how rapidly this sector is expanding in the UAE and especially in Dubai.

So, are you looking to buy a new car? Then you must be spending hours researching the latest model, but like most people, you might be forgetting one of the most crucial aspects of purchasing a brand-new four-wheeler: to buy car insurance in the UAE. While there is very little knowledge or awareness about getting insurance, it is the need of the hour and an “absolute essential” to keep you and your vehicle secured during unforeseen circumstances. This blog will highlight the importance of car insurance and what major mistakes to avoid while purchasing the same. 

Is having car insurance important?

Whether you have faced an accident or need to repair parts of your car, insurance protects your vehicle from any undesirable situation by covering the costs you need to bear. In addition, it reduces your legal and financial liabilities if you get involved in an accident and cause harm to a third-party individual or vehicle.

• In such a case, the insurance provider protects you from any legal repercussions arising from the accident. Moreover, if you suffer some serious injuries, a valid vehicle insurance policy will bear the medical expenses required for the treatment and provide essential financial support.

So yes, it is paramount to buy Car Insurance in UAE and is no longer a “nice to have” but an essential that saves you and your vehicle at times of distress.

What are the mistakes to avoid while selecting car insurance?

Did you know that a valid car insurance is equally vital as your driving license and can save you from bearing the brunt of paying hefty fines?. This fact states that as a car owner, you must own insurance, as it is important, just like your driving license. But how to buy the right one? Here are the common mistakes to avoid while purchasing car insurance:

Neglecting coverage needs

Are you someone who overlooks the importance of what kind of coverage you need? While insufficient coverage can put you in uncertainty, excessive insurance can lead to unnecessary expenses. Moreover, different types of coverage protect against various risks; therefore, it is important to understand the differences to find coverage that suits your needs.

Overlooking the insurer’s reputation

Yes, the policy’s cost and coverage are crucial, but verifying the insurance provider’s credibility is even more essential. Let’s say you opted for a company that provided positive yet false claims initially, but showed their true colours later. Nobody would want to fall prey to such a situation. So, ensure the company is properly registered before trusting it.

Ignoring the provider’s expertise

Professionalism is key to customer satisfaction, and when it comes to your insurance provider, verify whether they have a solid experience and proven expertise in the respective field. Moreover, check if they provide round-the-clock roadside assistance across the UAE.

Selecting based on price alone

While it is natural to be attracted to the cheapest policy, it is rarely a wise decision. Lower premiums often come with limited coverage or high deductibles, putting you in undesirable financial situations in the long run. Therefore, it is crucial to choose a policy based on coverage, not cost, so it can provide the necessary protection for a specific situation.

Ignoring insurance add-ons

Are you among those people who skip optional add-ons in their car insurance? Whether it is accidental damage or personal belongings coverage, these inclusions can be crucial if something happens out of the blue. From natural calamities like floods or storms to loss of the car or theft, your insurance should be able to offer coverage for any unforeseen situation.

Overlooking liability coverage

In times of crisis, such as an accident, the insurance company shall be liable to compensate for the third-party losses. Besides covering damages, your liability insurance should provide you with legal support in case of a third-party death or severe injuries. So, while purchasing car insurance, do not overlook the importance of third-party liability coverage.

Ignoring additional services

Want to purchase car insurance that can offer protection in all types of scenarios? Besides covering loss and damage, the insurance should provide hassle-free and cost-effective repair and towing services in times of accidents or mechanical breakdowns. For a quick and safe travel, check whether the insurance also offers battery boosting and lock-out service assistance. In addition, you can include fuel delivery and tyre fixing services to ensure a hassle-free and seamless ride.

To wrap up

Yes, selecting the right car insurance in the UAE is not a piece of cake, but with proper awareness and knowledge, it can be hassle-free and seamless. So, are you the proud owner of a car looking to invest in reliable insurance? Reach out to the team at The New India Assurance Co. Ltd today and stay rest assured!

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