All UAE drivers know that car insurance is mandatory, but not all insurance is created equal. A recent investigation by QIC Insured and MoveSouq.com spanning over 45,000 cars has revealed that roughly 20 per cent of Dubai cars are under-insured.
What makes an under-insured car? Under-insured cars are those covered only by a third party liability policy, despite being eligible for comprehensive insurance. Frederik Bisbjerg, executive vice-president Mena Retail, QIC Insured, explains that it is important for consumers to understand the two different types of insurance in the market to know how to properly insure their vehicles: Comprehensive insurance provides coverage for damages to the driver, passenger and vehicle resulting from collisions and other causes – such as fire, vandalism – regardless of who is at fault.
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. The Toyota Land Cruiser and the Nissan Patrol as the most frequently under-insured cars, at 49 per cent and 58 per cent, respectively. Bisbjerg said: “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.”
– business@khaleejtimes.com
