Dubai: Insurance experts have urged motorists to look beyond the price of vehicle insurance policies and compare the actual value of coverage before making a purchase decision.
They said significant differences in premium prices often reflect variations in coverage limits, benefits, deductibles, repair options, exclusions and claims services rather than differences in insurer profit margins alone.
Industry specialists stressed that the cheapest policy may not necessarily provide the best protection when a driver needs to file a claim.
Compare value, not just price
Toshita Chauhan, Chief Business Officer at Policybazaar, said insurance companies use different risk assessment and pricing models, which explains why premiums can vary significantly for the same driver and vehicle.
She noted that lower-priced policies may include restrictions such as higher deductibles, repairs through external workshops instead of dealerships, limited roadside assistance or reduced coverage for natural disasters and personal belongings.
Chauhan said motorists should assess what is included in a policy before focusing solely on the premium.
"Use the premium amount as a starting point for comparison, then review the details of what the policy actually includes in terms of coverage and additional benefits," she said.
Watch the fine print
Experts said policyholders should compare:
- Value of the insured vehicle
- Deductible amount or percentage
- Agency versus workshop repairs
- Total-loss compensation methodology
- Roadside assistance benefits
- Replacement vehicle availability
- Geographic coverage
- Natural disaster coverage
- Glass and windscreen protection
- Personal accident cover
- Protection of no-claims discounts
They warned that some policies marketed as comprehensive insurance may impose lower compensation limits on specific claims.
Coverage differences explain price gaps
Banking and financial expert Amjad Nasr said differences in insurance premiums are normal in the UAE's competitive insurance market.
He noted that while the Central Bank's regulatory framework governs vehicle insurance, insurers still have flexibility in setting prices based on coverage levels and benefits.
"There may be two policies that appear similar because both are comprehensive insurance, but they differ fundamentally in coverage, exclusions, deductibles and additional benefits," he said.
Nasr added that customers should ask what they receive for the price they pay, rather than simply choosing the cheapest option.
Total-loss valuation matters
Saeed Ahmed Al Muhairi, CEO of Gulf United Insurance Brokerage Company, said one of the most important factors for motorists to examine is how compensation is calculated if a vehicle is declared a total loss.
He also advised consumers to compare repair options, workshop networks, roadside assistance services and the insurer's reputation for handling claims.
"The value of a policy becomes most apparent when it is needed," he said.
Reputation counts
Adnan Elias, Sales Manager at Fidelity Insurance Services, said consumers should evaluate insurers based on claims handling, customer service and response times, in addition to policy terms.
He stressed that the correct comparison should combine price, coverage, deductibles, exclusions and services rather than focusing solely on premium costs.
"The cheapest offer may be less valuable in the event of an accident," Elias said.
Experts agreed that informed comparisons help consumers make better decisions while encouraging insurers to compete on service quality and coverage, not just price.