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November 22, 2016 | 13:15 | Dubai
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, the Middle East’s leading financial comparison site.
The survey, conducted between October and November 2016, revealed that 69.7% of UAE residents search for the best coverage possible when shopping around for car insurance. Just 24.2% said that they actively searched for the cheapest coverage, while 6.1% said they were indifferent to the type of coverage they received, so long as their car was covered.
The findings of the survey suggest that, when it comes to car insurance, UAE residents are prepared to pay extra for added 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.
“I think the rise of online car insurance comparison in the UAE also has something to do with it. By using car insurance comparison portals like compareit4me.com, consumers are finding that fully comprehensive insurance is cheaper than they previously thought. In some cases, one insurer’s third-party coverage will be more expensive than another’s fully comprehensive coverage. This means that more consumers are coming to expect better coverage for their money.
Indeed, the survey revealed that, even if car insurance was not a legal requirement, 45.5% of UAE residents would still opt for the best coverage possible. A further 39.4% said they would still purchase car insurance, but simply buy the cheapest option. Only 12.1% of respondents said that 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% claiming they were satisfied, just over 22% claiming they were very satisfied, and over 12% claiming they couldn’t be more satisfied.
Respondents also claimed that insuring their car was becoming easier, with 54.5% claiming that they have an average time purchasing car insurance. Over 15% said that it was easy to buy car coverage, while 21.2% said that it was very easy to insure their car. Only 9.1% 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% claiming to be a customer of the company. QIC Insured came in second with an 11.8% share, while Dubai Insurance came third with 8.8%. Union Insurance and AXA rounded off the top five with 5.9% share each.