Are you falling for common car insurance myths? Misinformation about car insurance can lead to costly mistakes and missed savings. In this guide, we’ll debunk 10 widespread car insurance myths and clarify the truth behind myths about car insurance. Stay informed to make smarter, budget-friendly decisions for your car insurance in UAE.
Myths About Car Insurance 1: The Cheaper the Insurance Coverage, the Better
This is one of the most financially risky myths about car insurance. For example, let’s compare two main types of coverage: comprehensive and third-party coverage offered by car insurance companies in the UAE.
- By looking at these two types of coverage, we can see that third-party coverage is much cheaper than comprehensive coverage.
- Third-party coverage, which tends to be more affordable than comprehensive coverage, offers the insurance holder more limited options.
- Key Differences to Note:
- Nevertheless, we must be aware that these two types of coverage are different.
Final Consideration:
- When encountering these sorts of car insurance myths, it’s essential to consider all the details.
Myths About Car Insurance 2: With Personal Accident Insurance, I Won’t Have to Worry About Medical Bills After an Accident
Here we have one of the most common car insurance myths. There is an assumption that medical costs will be covered when one has personal accident insurance for their car. This is not entirely true and needs more clarification, like every other myth. This coverage typically provides a one-time payout for specific injuries, and medical treatment is often excluded from it. Suppose you want the costs of hospital visits or surgeries to be covered by your insurance policy. In that case, you’ll need health insurance or a medical coverage plan alongside your car insurance policy.
Car Insurance Myths 3: Comprehensive Insurance Covers Everything Related to Your Car
Another one of common car insurance myths is that comprehensive insurance covers everything related to one’s car. Although comprehensive insurance does provide extensive and, as the name suggests, comprehensive coverage, it does not necessarily cover every possible scenario. Every policy, even the most comprehensive one, has its exclusions and limitations. However, you can always add more options to your insurance policy by including add-ons and extensions to make it more personalized and suitable. It’s essential to do your research carefully before choosing a specific policy and understand what is and isn’t covered under that insurance.
Myths About Car Insurance 4: If I Have Third-Party Insurance, I’m Fully Covered in Any Accident
In many countries, including the UAE, third-party insurance is a mandatory requirement, and it’s a must for car owners to have it. However, we should keep in mind that having third-party insurance does not mean that we are fully covered in any accident. On the contrary to such myths about car insurance, third-party insurance is known to have limited coverage when compared to comprehensive insurance. Third-party insurance only covers damages and injuries caused to other people and their property during an accident. This type of insurance does not cover any damages to your vehicle or injuries sustained by you. If you want more extensive coverage, you need to consider other types of policies, such as comprehensive insurance coverage.
Car Insurance Myths 5: My Car Insurance Will Automatically Cover Theft If My Car Gets Stolen
This is another one of the myths about car insurance that many people tend to believe. Many people might not know that theft coverage is not automatically included in all car insurance policies. Some people assume their car insurance will cover theft, but this is not always true. That’s why you always need to check your policy to see whether theft is covered carefully. If theft is not covered, customers usually have an additional coverage option. Comprehensive insurance policies typically include theft coverage, but confirming this with your insurance provider is always recommended.
Don’t Let Car Insurance Myths Cost You Money
Myths are entangled in every aspect of our lives, and the car insurance industry is no exception. It’s important to be informed and aware of the myths that surround the topic of car insurance in UAE, which we covered in this article such as:
- “Cheaper Insurance is Better”
Third-party coverage saves upfront costs but excludes protection for your own vehicle—comprehensive plans offer broader safeguards despite higher premiums. - “Personal Accident Insurance Covers All Medical Bills”
Provides lump-sum payouts for specific injuries, not ongoing treatment; pair with health insurance for full medical expense coverage. - “Comprehensive Insurance Covers Everything”
Excludes wear-and-tear, DUIs, and undeclared modifications; customize with add-ons (e.g., agency repairs, off-road coverage). - “Third-Party Insurance Fully Protects in Accidents”
Only covers others’ damages/injuries—not your own vehicle repairs or personal medical costs. - “Theft Coverage is Automatic”
Theft protection isn’t standard in all policies; verify inclusion or opt for comprehensive plans.
This is primarily important because having wrong assumptions and ideas about car insurance can lead to choosing the wrong insurance policy. There are many more insurance-related myths that might make the process of finding a good insurance policy a bit confusing. With more clarification and knowledge about car insurance myths, we can find the best insurance coverage that suits our needs.
Frequently Asked Question
1. Are newer cars more expensive to insure than older cars?
Yes, newer cars are generally more expensive to insure in the UAE due to their higher market value, costlier repairs/replacements, and advanced technology. Older cars may have lower premiums but could incur higher costs if deemed less safe or more prone to breakdowns.
2. What is the longest you can go without car insurance?
In the UAE, you cannot drive legally without at least third-party liability insurance, even for a single day. There is no grace period—insurance must be active before driving. Driving uninsured risks fines, vehicle impoundment, and license suspension.
3. What is the penalty for driving without insurance in the UAE?
Driving without valid car insurance in the UAE is a serious offense and incurs the following penalties:
Fines: Up to AED 1,000 (depending on the Emirate).
Vehicle impoundment: The car may be seized for up to 7 days (or longer for repeat offenses).
License suspension: Your driving license could be suspended temporarily.
Black points: 4 black points added to your traffic file.
Legal charges: Potential court proceedings for accidents causing damage or injury.
4. At what age is car insurance cheapest?
Car insurance premiums in the UAE are typically cheapest for drivers aged 30–50 years, as they are statistically considered lower risk. However, key factors include:
Younger drivers (under 25): Often pay higher premiums due to perceived inexperience and higher accident risk.
Older drivers (60+): May see slight increases due to slower reflexes or health concerns.
Driving history: A clean record can reduce costs regardless of age.
5. Are Older cars are cheaper to insure?
Generally, yes. However, premiums may rise if the car is prone to breakdowns, lacks safety features, or requires expensive repairs (e.g., rare parts or agency garage mandates).
