Understanding how this kind of insurance works is important when deciding whether to purchase it for your policy. Read on to find out if it’s right for you.

About Agency Repairs

Insurance companies in the UAE guarantee financial coverage for repairs needed as a result of car accidents. However, instead of paying the policyholder, insurance agencies will have the repairs done through a contracted automobile repair agency.

Agency repair cover is an add-on purchase to your regular car insurance policy. It guarantees that an authorized dealer of your vehicle will repair it should you make a claim.

How Does This Kind of Coverage Work?

Car insurance is a legal requirement in the UAE, so the demand for it is great. This has an effect on insurance companies, who take necessary steps to minimise costs and an excessive number of claims. One of these ways is by partnering with auto repair garages that make repairs on their behalf.

This agreement is beneficial to both the insurance companies and the garages:

Garages receive consistent business from insurance companies

Insurance companies pay less; garages can afford to service insurance companies at a reduced rate, because they receive consistent business from them.

Insurance companies can be actively involved in the repair process to ensure their expenditure is accurate and there is no fraud.

Is it Right For You?

Agency repair cover ensures that repairs are made by licenced dealers of your make of vehicle, or by other qualified specialists. You should expect a guarantee that only quality original parts, specific to your vehicle, are used in repairs. Vehicle manufacturers will often oversee repairs by these agencies, to ensure quality control and protect their brand name.

However, it’s important to keep in mind that repairs made at these agencies are more expensive than repairs done at a general garage. You will usually pay an additional amount to add agency repair coverage to your car insurance plan. This is because insurance companies need to collect monthly premiums to finance specialist repairs.

Keep in mind the age and value of your vehicle when deciding whether to opt for this coverage.

Summary

A good understanding of your existing vehicle coverage policy is useful when deciding whether or not to purchase agency repair coverage. Compare different coverage plans at CompareInsurance. We make it easy to quickly and conveniently research and assess all kinds of insurance policies to find the best one for you.