As much as 90 percent of imported (non-GCC specification) cars in the Gulf are rejected by insurance companies for cover, a report has claimed.
Insurers refuse to provide comprehensive insurance cover to the vast majority of imported cars – highlighting severe coverage gaps in the region, according to a study by Dubizzle and Souqamal.com.
The average premium per policy was about AED3,000 ($816) for comprehensive coverage from May 2016 to March 2017, the report said, adding that premiums can vary for the same car make and model based on a range of factors, such as depreciation of the vehicle, vehicle specs – GCC versus non-GCC – the age of the driver and the number of driving years.
The figures were based on an analysis of the car insurance policies purchased through Souqamal.com over the period. The online marketplace and Dubizzle Motors have recently launched a partnership to share data for comparing and buying car insurance for second-hand cars.
Jean-Pierre Mondalek, General Manager, Motors, dubizzle, told Arabian Business: “Based on the analysis done by CarReport, 17 percent of the ‘Total Loss’ cars being imported into the UAE right now for registration will fall into the new ‘banned categories’ section of the Emirates Authority for Standardization and Metrology, which will be introduced on May 1 2017.
“We expect this number to decrease, however, we do not anticipate that this new law will stop the influx of ‘Total Loss’ cars coming into the country for re-export.”
Meanwhile the report with Souqamal, published on Sunday, found that the most popular features among UAE consumers when purchasing car insurance were agency repair and personal accident cover for drivers and passengers.
Japanese cars accounted for the largest number of insured vehicles, while more than 50 percent of cars insured on the site were less than three years old, according to the study.
In the UAE specifically, the most insured cars in 2016 were Nissan Altima, Honda Accord, Honda Civic, Nissan Tiida, Mitsubishi Pajero and Toyota Corolla.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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