Accidents happen often and can be a serious concern depending on how bad they are. Aside from the threat to life, the cost of repairs also causes stress to those involved. Accidents and car damage leave you with the dilemma of how to fix them.
With insurance, it can appear to be easier to handle, but many times, there’s confusion about whether using your insurance to cover the cost is better than paying out of pocket. If
There is a clear step-by-step process for claiming car insurance in the UAE. However, it can take too long. The first thing the insurance company will need from you is a police report. Immediately after the accident, get a police report and then the insurer notification. In some Emirates, you pay a fee to get a police report for whatever case.
There is usually a deductible fee for every claim you make. This fee can range from a few hundred to AED 1,000. Also, getting a claim takes about 7-14 working days, depending on the damage incurred and even the speed at which your insurer responds.
Many insurers have approved garages where you must repair your car. You can only choose a different location if the company or policy allows.
Then, another cost of filing a claim hidden in plain sight is the loss of your no-claim discounts. These discounts are received every year if you don’t file a claim with the insurance company. You get more discounts if you stay longer without claims, but after even one claim, you’re viewed as high risk, and this increases your premium noticeably in the next renewal.
Repairing Your Car without Insurance
Personal repairs are like any other financial task you undertake personally. To repair your car without insurance means you go to the car repair service or nearby garage yourself, and the financial burden to fix your car is on you. It is a faster and simpler route, as you pay upfront and keep your insurance record clean.
However, getting a car repair service from the best auto repair near me contradicts the point of having insurance in the first place, especially if it’s a major repair.
The dividing line then becomes how serious the damage is.
Car Insurance Claim vs. Cash Repair in the UAE
This is the big question and many people’s dilemma with insurance claims for car damage: “Should I claim insurance or repair the car?” Here is some practical guidance to make your decision:
When Claiming Insurance Makes Sense
Insurance claims are more favorable to the claimant under certain conditions:
- When the damage is major: Insurance works best when the bills are higher and will make a huge dent in your purse, especially when the damage is major. It is the main reason people get insured, so that one negative occurrence won’t leave them bankrupt.
- When there is a third-party involvement: The insurers can cover the cost of both cars rather than one person carrying all.
- When the repairs are safety-critical: Insurance companies usually partner with quality and reputable car repair stations, making them better suited to fix cars with more safety-critical damage.
When Fixing the Car Yourself Is Better
Some damages don’t need too much drama, as they’re almost insignificant, and you can handle them without breaking a sweat. Here are some cogent circumstances to avoid calling for backup:
- When You Have Minor Cosmetic Damage: If it’s not a full body job or something to do with major parts, you can fix it yourself.
- When Repairing is Cheaper Than the Excess: If the cost of getting a police report before proceeding with the claim and paying the excess is more than repairing it yourself, then it’s clear that doing it yourself is a better and faster option. You also save time this way.
- When You’re Protecting Your No-claims Bonus: You are better off saving the bonus for if something more worthwhile presents itself, especially if you’ve ticked the boxes above.
Final Thoughts
After carefully considering the options presented to you, you can tell which move will pay in the long run, whether for or against using insurance. Choose the best option based on the damage done to your car that makes the best out of your insurance package.
