Twenty per cent of cars in Dubai are under insured, with owners of high-end cars - Toyota Land Cruiser and the Nissan Patrol – opting for third party liability policy, according to a new report.
The 'Top 10 Cars' infographic, compiled by Qatar Insurance Company (QIC) Insured and MoveSouq.com, reveals the above two cars are the most under-insured cars in the emirate, at 49 per cent and 58 per cent, respectively. Buyers of Toyota Corolla, Toyota Camry and Nissan Sunny generally opt for comprehensive insurance.
Under-insured cars are those covered only by a third party liability policy, despite being eligible for comprehensive insurance.
Comprehensive insurance provides coverage for damages to the driver, passenger and vehicle resulting from collisions and other causes (e.g., fire, vandalism), regardless of who is at fault, while third party liability insurance provides minimum coverage allowed by law and will only pay to repair the other person's car or cover his or her medical bills.
Frederik Bisbjerg, Executive Vice President Mena Retail, QIC Insured, says: “Drivers who own larger, high-end cars tend to make riskier insurance choices. They often think, ‘I won’t cause an accident…I’d rather save on the insurance and just get third-party.
This line of thinking puts the vehicle owner at risk, since they will be on the hook for fixing (or replacing) their own car or paying for any outstanding car loans if they cause an accident.”
MoveSouq.com CEO Bana Shomali gives two tips for those shopping for car insurance.
“First, if you have a car loan, you should check with your lender (bank, dealership, etc.) because your financing conditions will most likely require you to have comprehensive coverage. Second, find out what your car is really worth. This will give you an idea what it will cost to fix it if something happens. If your car is a recent model, buying comprehensive insurance might be a smart investment. However, with older cars, you may be confident that you could afford to pay to repair or replace it.”
The UAE market typically offers comprehensive insurance on car models from 2009 and later, but if your car model year is 2008 or earlier, one may face difficulties getting a comprehensive policy, adds Bisbjerg.
The report has been complied based on data from over 45,000 car owners.