Fewer than 1 percent of people bought natural calamity cover in Q2 2018, according to yallacompare.
Coverage for a replacement car was the most popular insurance add-on in the UAE in Q2 2018, according to a new study from yallacompare.
An analysis of yallacompare sales data revealed that 20 percent of UAE car insurance buyers selected at least one add-on in Q2 2018, with 43 percent selecting replacement car coverage, for which they paid an average price of AED 174.
“The minimum levels of coverage mandated by the UAE’s Insurance Authority provide replacement car cover for the party who’s not at fault in the event of an accident,” said Jonathon Rawling, the CFO of yallacompare.
“However, the add-on selected by these buyers provides a replacement car to the owner of the premium regardless of who is at fault.”
Rawling added that “it’s certainly an added level of cover that we recommend purchasing, in the same way that we recommend taking out a fully comprehensive policy. It means that if you are unfortunately enough to have an accident, you’ll be granted a replacement car no matter the circumstances.”
The second most popular car insurance add-on was personal accident cover, which was purchased by 27 percent of people at an average cost of AED 120. This was followed by breakdown cover, which 20 percent of people opted for at an average price of AED 47.
“We should point out that this add-on will not provide coverage for mechanical repairs. The service is simply a lifeline that will get your car from wherever it has broken down to a garage of your choice. Still, at AED 47, we believe it’s an add-on that’s well worth investing in – if it isn’t already included in your policy,” said Rawling.
Home insurance was selected by 3 percent of add-on buyers during Q2 2018, while personal accident cover for passengers was purchased by 1 percent. Natural calamity cover was bought by fewer than 1 percent during the quarter, at an average cost of AED 200.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.