Beware: Pitfalls of Opting for the Cheapest Car Insurance

Ever since PitStopArabia has started offering car insurance in the UAE, we have uploaded different blog posts on how to get the best and cheapest car insurance. We have also done reviews on various UAE car insurance companies that might help you get a better deal. That’s not all. We have also uploaded numerous posts on different aspects of car insurance.

For instance, we have discussed the types of car insurance along with which one is best for a car owner. However, we feel that we have let down our readers and customers. Why? The reason is that we have always focused on getting the cheapest car insurance, but we have failed to inform you about the pitfalls of buying the cheapest car insurance. Recognizing our failure, we have decided to rectify our issue.

In this blog post, we will discuss the drawbacks associated with opting for the cheapest car insurance. Before we do that, let’s review some fun facts regarding car insurance.

Fun Facts about Car Insurance

• The internet has made car insurance cheaper because it allows for quick comparison of insurance premiums. Due to the increased competition and ease, insurance companies have had to reduce their premiums.
• A person’s credit rating matters the same as previous driving record and claim history.
• The insurance rates are the highest for people under 25.
• The type of vehicle has a considerable bearing on the insurance premium.
• Your job occupation has certain perks and drawbacks. Usually, people associated with law enforcement agencies get discounts, while people working in the transport sector are charged higher premiums.
• If you have a poor credit history, it is better to stick with your current provider and improve your credit score before switching to a new one.

Now, coming back to the original topic, let’s discuss the drawbacks associated with cheap policies. Although we might be using the words ‘car insurance in UAE’ or ‘automobile insurance Dubai’, the below information is applicable worldwide. The only reason we use words like UAE or Dubai is that we are currently catering to people in the UAE.

Pitfalls of Buying Cheap Car Insurance

Before we begin our discussion, we would like to highlight that cheap isn’t necessarily bad. At times, cheap might be precisely what you need. However, issues only arise when the policyholder has different expectations from the policy. In order to avoid such problems, it is better to read the policy carefully.

No Roadside Assistance

99.99% of the car insurance companies in the UAE will not offer roadside assistance in their cheapest car insurance package. After all, they have no reason to because roadside assistance can turn out to be very expensive for the company. Imagine that you are off-roading somewhere in the desert and your car battery breaks down. Now, the insurance provider will have to send a recovery vehicle to that place which is a hectic and resource-intensive task. Therefore, car insurance companies do not offer such benefits in their lowest price deals.

Agency Repair is not Included

Do you know what agency repair is? The chances are that most of you have never heard of this term before. Well, each car dealership has a list of official service networks. These garages are authorized to carry out official repairs and maintenance on the vehicle. Now, in the world of car insurance, agency repair means that the insurance provider will conduct all work at a listed agency instead of a third party.

This means that you will not have to concern yourself with faulty or substandard work. When buying the cheapest car insurance, the chances of getting agency repair is almost zero. The reason is that agency repairs are quite expensive, and no automobile insurance provider will include it in their cheapest option. Hence, you might have to settle with a non-official repair shop that might end up causing more damage to the vehicle.

No Off-Road Insurance

One of the best experiences the UAE has to offer is off-road driving in its vast deserts. This is not just something that the foreigners have a liking for as even the local Emiratis take out time from their busy schedules to experience this from to time. Unfortunately, if you have opted for the cheapest car insurance, any damage incurred during off-roading will not be covered. Therefore, you might be liable to pay a hefty repair bill.

On top of it, if you ended up in a collision, you would be liable to pay their hospital bills, injury claims, and even their repair bills. Therefore, the better option is to avoid off-road driving and stick to the city. If you feel extra enthusiastic about off-road driving, upgrade your policy. If you plan on cancelling your policy, please read this article. This article discusses the potential issues to avoid when cancelling the existing policy. Make sure to read it in detail.

Also, it is pertinent to mention that even the most expensive insurance package might not cover everything associated with off-road driving. For instance, dune bashing or off-road competitions are not covered by most insurance companies in the UAE. Nevertheless, it is better to read the policy in detail to determine what is included or excluded in the policy.

Car Excess

Remember our article on car excess? If not, we request you to read it again because this point is directly related to that article. In simple words, the excess is simply the amount that the policyholder will pay when making a claim. The insurance provider covers the rest. When opting for cheap insurance policies, they are usually obscure or silent on the compulsory excess. Resultantly, the policyholder ends up paying a lot more than if they had opted for a higher-priced insurance deal.

Wrap Up

This concludes our article. We hope that you find the information we have listed above illuminating and educational. If you feel that we have missed out any drawback, please let us know. After all, your feedback helps us improve. Thank You.