UAE drivers willing to pay big for car coverage

UAE residents are prepared to pay extra for added peace of mind

Over two-thirds of UAE drivers prefer to purchase the best car insurance coverage, rather than the cheapest, according to a survey from compareit4me.com, a financial comparison site.
The survey revealed that 69.7 per cent of UAE residents search for the best coverage possible when shopping around for car insurance. Just 24.2 per cent said they actively searched for the cheapest coverage, while 6.1 per cent said they were indifferent to the type of coverage they received, so long as their car was covered.
The survey suggest that when it comes to car insurance, UAE residents are prepared to pay extra for peace of mind.
"Car insurance premiums have gone up over the past few years in the UAE, and while that has more to do with the state of the insurance industry, it appears that the majority of consumers have responded by resigning themselves to the fact that coverage is now an expensive proposition. And if you're paying out so much money, why wouldn't you opt for a policy that gives your car the best protection?" said Jonathan Rawling, CFO at compareit4me.com.
The survey revealed that even if car insurance was not a legal requirement, 45.5 per cent of UAE residents would still opt for the best coverage possible. A further 39.4 per cent said they would still purchase car insurance, but simply buy the cheapest option. Only 12.1 per cent of respondents said they would not purchase car insurance if it was not a legal requirement.
Additionally, the survey revealed that the majority of UAE residents are satisfied with their car insurance, with just under 30 per cent claiming they were satisfied, just over 22 per cent claiming they were very satisfied, and over 12 per cent claiming they couldn't be more satisfied.

Respondents also claimed that insuring their car was becoming easier, with 54.5 per cent claiming that they have an average time purchasing car insurance. Over 15 per cent said that it was easy to buy car coverage, while 21.2 per cent said that it was very easy to insure their car. Only 9.1 per cent of respondents said that purchasing a policy was hard or very hard.

"I think there's a lesson here for the region's insurers - consumers will reward them by purchasing better-quality coverage if they're given high levels of service. Clearly, our survey respondents are satisfied with their policies, and there's a correlation between that satisfaction and the willingness to spend more on better coverage," Rawling added.

In terms of the most popular insurers, Oman Insurance Company came top of the respondents' list, with 23.5 per cent claiming to be a customer of the company. QIC Insured came in second with an 11.8 per cent share, while Dubai Insurance came third with 8.8 per cent. Union Insurance and AXA rounded off the top five with a 5.9 per cent share each.
- business@khaleejtimes.com