Used cars cheaper to insure than new ones

dubai - Qatar Insurance lists the do's and don'ts for covering a luxury car in the UAE

Expats with a high disposable income in the UAE are used to splurging on swanky cars. But besides the bragging rights, have you ever thought of the recurring costs that come with buying with a luxury car? Insurance and maintenance are the biggest costs you need to keep in mind before committing your dirhams to the auto dealership.
Online home services marketplace MoveSouq.com and Qatar Insurance Company UAE (QIC) have come together to inform prospective car buyers the do's and dont's associated with insuring a luxury car.
For instance, did you know that it is generally cheaper to insure used cars than new ones?
Informs Prasanna Venkatesh, vice-president for motor underwriting at QIC Insured: "The sweet spot from an insurance point of view is two to three years old. At this age, most cars are still under warranty and eligible for agency [dealership] repairs in the event of an accident."
All you petrolheads keen on buying a Ferrari and Lamborghini, bear in mind that sports cars are much more costlier to insure than high-value vehicle brands such as Rolls Royce and Bentley.

Premium
"The premium for a sports car versus a luxury sedan can be up to 40 per cent. This is because of the higher risk of the cars and driver profiles associated with sports cars," says QIC's Venkatesh.
Another common concern while insuring our cars is whether to opt for agency or garage repairs. Here's what the insurance expert has to say: "Agency repair is best since luxury cars tend to have sensors/controls that cannot be fixed or replaced in most third-party garages. Since the option for agency repair generally expires three years from the date of first registration, look for an insurance company that offers premium garages that can service luxury brands."
In case you are buying a used car, make sure to do a thorough background check. QIC's Venkatesh suggests four points to keep in mind before buying a secondhand car: Check the warranty, service history, get a passing certificate from RTA vehicle testing centre and look out for GCC specifications.
"GCC specs can be checked in three places - RTA passing certificate, inside panel of the driver's door or the left corner of the dashboard visible through the windscreen," Venkatesh points out.
He adds: "Cars with GCC specs are almost always cheaper to insure. Be wary of non-GCC cars because not all insurance companies will insure them."

How to choose
With a bevy of auto insurance providers in the UAE, it can be baffling to choose one among the crowd. It's vital to opt for an insurance company rated by international credit rating agencies.
"This will ensure that the company has the ability to settle a large loss claim. It's worth an additional few hundred dirhams for the peace of mind that your underwriter will come through if you file a large claim," Venkatesh concludes.
- business@khaleejtimes.com