4C's of Motor Insurance

October 21, 2020

Choosing the right insurer depends on the 4Cs:


1.      Coverage

2.      Claims Service

3.      Claims Paying Ability

4.      Cost


Coverage is probably the most important aspect of your motor insurance. Coverage determines whether the damage to your car is payable or not.

Make sure to look out for the following features in your policy:

1.      Type of repair: This can either be Agency or Non-Agency. Agency repair would allow you to repair your car at the dealer’s garage (For example: Mercedes at Gargash, Nissan at AW Rostamani, Audi at Al Nabooda etc). This option is recommended for vehicles which are less than 3 years old. Non-agency repair allows you to repair your car in the panel of garages given to you by the insurance company. This panel may vary from insurer to insurer and the list will be provided to you at the time of a claim.


2.      Excess: Excess is the amount that you will have to bear in case you damage your car due to your fault. The excess is as per the unified motor insurance policy of the Insurance Authority therefore the excess may be same across all insurers. However, if you would like to reduce your premium you may have the option to opt for a higher excess.


3.      Natural Calamities: Thankfully in the UAE we have not faced much Natural Calamities however there are some areas in the UAE which are prone to flooding. Therefore if your car was damaged due to flooding, this cover would enable you to claim from your policy.


4.      Replacement Car: This benefit is to ensure no disturbance in your schedule, when your car is at the garage following an accident. Make sure to check the number of days of rent a car coverage that you get from your insurer as some insurers may give 5 days and some may give up to 10 days of car rental.

Roadside Assistance: Roadside Assistance is a life saver. It is an essential cover that gives you a peace of mind in case anything happens to your car while you are driving somewhere. Roadside assistance is not necessarily an insurance, but more of a value added service that provides you with essential services such as battery replacement, towing in case of breakdown, tire change etc. Most roadside assistance companies have an app which can be used to call for their services.

Off road cover: This is important for all you desert enthusiasts. Traditional motor insurance policies for SUVs or 4X4s do not cover damage sustained when not driving on a legal road. Therefore, check your policy for this cover before you head off with your vehicle to Hatta.

Claims Service: The only tangible element in an insurance policy is the claim. Therefore in the unfortunate event of a claim, a customer looks for an assurance from the insurance company that the claim will be settled and on time. The parameters to define claims service are: ease of claim intimation, turnaround time for approval, turnaround time for repair.

Claims paying ability: Insurance is a promise to pay therefore it is important for the insurance company to have the ability to keep up its obligations of claims settlement. Due to the stringent regulations of the Insurance Authority, insurers’ solvency have been strictly monitored. However it is always a good practice to see the credit rating of the insurer from whom you are purchasing the policy.

Cost: This is probably the most critical factor in purchasing a policy. Motor insurance policies are not cheap and therefore have to be budgeted. A cost and coverage balance needs to be achieved in order to make sure that you do not compromise on your coverage for lesser costs.

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