InFocus | Abu Dhabi Motor Show
Your insurance queries answered
If you've just bought a car and are wondering about insurance, Alexis de Beauregard, Director Marketing and Retail Product Management, AXA Insurance Gulf, answers your questions.
- Gulf News Report
- Published: 23:30 December 16, 2008
If you've just bought a car and are wondering about insurance, Alexis de Beauregard, Director Marketing and Retail Product Management, AXA Insurance Gulf, answers your questions.
What are the benefits of car insurance?
Basically insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional.
In the UAE, the traffic department requires every vehicle to have a third party cover. Third party liability means bodily injury and/or material damage caused to a third party in the event of an accident caused by the use of your motor vehicle, and which injury/damage must be remedied.
If you have a car loan, you are required to have comprehensive cover as part of the bank's mandate. However, AXA recommends it is always better to opt for comprehensive cover so long as it is available. Most insurers provide comprehensive cover up to the seventh year of the vehicle.
What do you need to consider when deciding how much insurance you need?
When shopping around for a policy, think about more than just the price. Not all insurance companies are the same and some may offer higher limits than others. Check the limits on your insurance policy. A third-party property damage limit of Dh500,000 (as per the standard Ministry wording in the UAE) might not be enough to fully protect you. Do you have cover for natural calamities? When it comes to service, does the insurer use approved garages for carrying out repairs, and will it provide you with a 24-hour breakdown service?
If you are a responsible driver, use an insurance company that will reward your claim-free status by giving you a discount.
Make sure you use a reputable company and don't feel obliged to accept the insurance offered at the car show room. You could even obtain a discount by setting up your policy over the phone with a credit card.
What types of auto insurance does Axa offer?
Comprehensive Executive: This offers five years' agency repair, GCC cover, protected no-claims, personal accident benefit to the driver and passenger and a replacement car.
Comprehensive Perfect: Standard motor policy available to drivers over the age of 25.
Third Party Fire and Theft: This offers the highest third-party property damage limit in the Middle East. It is available to all drivers.
Third Party: Highest third-party property damage limit in the Middle East including fire and theft. Available to all drivers.
