Insurance

Replacement Car Cover Is UAE’s Most Popular Insurance Add-On

UAE Car Insurance

Coverage for a replacement car was the most popular car insurance add-on sold in the UAE during the second quarter of the year.

Coverage for a replacement car was the most popular car insurance add-on sold in the UAE during the second quarter of the year, according to a study from yallacompare, the Middle East’s leading comparison site.

To arrive at this conclusion, yallacompare analysed sales data from its online car insurance comparison portal, which is the largest in the Middle East by several orders of magnitude, representing over 76% of all online insurance sales in the GCC region.

The analysis revealed that 20% of UAE car insurance buyers selected at least one add-on during the second quarter of the 2018. Of those, 43% selected replacement car coverage, making it the most popular add-on of the quarter. The average price that users paid for this add-on was AED 174.

The minimum levels of coverage mandated by the UAE’s Insurance Authority provide replacement car cover for the party who’s not at fault in the event of an accident. However, the add-on selected by these buyers provides a replacement car to the owner of the premium regardless of who is at fault,” said Jonathan Rawling, CFO of yallacompare.

“It’s certainly an added level of cover that we recommend purchasing, in the same way that we recommend taking out a fully comprehensive policy. It means that, if you are unfortunate enough to have an accident, you’ll be granted a replacement car no matter the circumstances.”

The next most-popular add-on selected by UAE car insurance buyers during the quarter was personal accident cover, purchased by 27% of those who bought add-ons at an average cost of AED 120. This coverage provides lump-sum payouts in the event of specific injuries that may be sustained in an accident.

Breakdown cover was the third most-selected add-on during the quarter, with 20% opting for it at an average price of AED 47. For the most part, this add-on provides recovery services in the event of a breakdown, with the insurer picking up the cost of the recovery vehicle.

“We should point out that this add-on will not provide coverage for mechanical repairs. The service is simply a lifeline that will get your car from wherever it has broken down to a garage of your choice. Still, at AED 47, we believe it’s an add-on that’s well worth investing in – if it isn’t already included in your policy,” said Rawling.

Home insurance was selected by 3% of add-on buyers during the second quarter of 2018, and personal accident cover for passengers was purchased by 1%. Natural calamity cover was bought by fewer than 1% during the quarter – at an average cost of AED 200.

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