When you think of the UAE and cars, you instantly think style and glamour. Images of fast sports cars or sleek 4x4s come to mind and, in that respect, you wouldn’t be wrong. Places like Dubai have long been a car lover’s paradise with the sheer amount of beautiful vehicles you see on the road everyday.
But did you know that a recent study has found some drivers may be under-insuring their cars?
The latest car news in the region is that a study released by yallacompare has found that some drivers of sports cars in the UAE are not insuring their cars for the correct amount. By comparing sales data, they have found that there is a discrepancy between the average sale price of fast sports cars and what they are being insured for.
Some differences are stark
Although this is not a problem that affects every car being insured, for some models the data makes for interesting reading. A Porsche 911 Carerra 4, for example, is usually insured for around the Dh215,000 mark but the average sale price for this car at second-hand dealerships in the UAE is Dh346,000! This perfectly illustrates the findings the yallcompare study has reported and the potential problem it has uncovered.
What are the consequences of this?
In simple terms, if you under-insure your car then you may, as the driver, end up spending more of your own money to fix it if it gets damaged. While some drivers may be under-insuring on purpose to avoid high insurance premiums, the money they would then have to spend in the event of an accident makes this a flawed approach to take. Yallacompare did also note that the other reason for their findings may be that some dealerships are over-charging for certain models of car.
Correct insurance value is key
While this is not a widespread problem affecting large numbers in the UAE, it may still be worth double-checking with your insurance company if you have a high-powered sports car or luxury cars. Getting the correct insurance levels for your vehicle is vital and will certainly be worth it if you suffer any damage to your car whilst driving around.