What do you Mean by Agency Cover and Non-agency Cover for Motor Insurance in UAE

According to UAE federal law regulations, car owners must insure their vehicles so that if an accident or mishap happens with or by the car, the financial and legal hassles do not get out of control. Leading insurance providers offer different types of motor insurance in the UAE, including third-party insurance, comprehensive insurance, and so on. Depending on the car’s condition and several other factors, car owners can choose their preferred insurance plan for their vehicles.

However, while selecting a car insurance plan, a determining factor that often confuses many car owners, is agency repair cover. Especially those who are new to purchasing car insurance in the UAE may find it difficult to understand what it is. Many car insurance companies include agency coverage, whereas some companies offer non-agency coverage.

In this blog, we will discuss both of the coverage plans in detail. Also, at the end, it will conclude with some insights on which option is the most suitable for your car.

Agency Repair Coverage in Motor Insurance in the UAE

Most insurance companies in the UAE, under their motor insurance policies, offer 2-3 years of agency repair coverage for cars which begins from the registration date or the vehicle’s model year. For instance if your car meets with any unfortunate incident on the road and gets damaged, it is sent to the same dealership or agency for repair that manufactured or sold the vehicle originally.  Some leading insurance companies offer an additional benefit of extending the agency repair tenure up to 5 years at an extra cost added to the main insurance package. 

The benefits of agency repair are as follows:

• The damages on the car are inspected by experts and assessed for an estimated budget. 
• Certified and qualified technicians handle repair and replacement cases. 
• Genuine, high-quality spare parts are used when it is necessary to replace damaged vehicle’s parts. 
• The whole procedure of repairing the damaged vehicles takes place in a systematic way following several steps. 
• Agency repair ensures better resale value of the vehicle as genuine spare parts are used. 
• The car’s branding integrity remains intact with the use of original spare parts of the same brand.

Non-agency Repair Coverage in Motor Insurance in UAE

Once the duration of agency coverage ends, insurers direct the vehicles to non-agency terms. Non-agency repair coverage means, if the car gets damaged in an accident or other similar mishap, the liability of repair and replacement goes to any non-agency repairer. These repairers are often a part of the network of reliable, independent garages or workshops. Usually, non-agency coverage mostly starts after 2-3 years from the date of the vehicle’s registration as by then agency cover ends.

The advantages of non-agency repair include: 

• Non-agency repair is more affordable than agency repair, so the insurance premium is also reduced. 
• Prompt service with quicker turnaround time that authorised dealerships makes non-agency repair a popular choice for car owners. 
• The coverage is easy to access as car owners do not have to go through the long process of authorised centres. 
• Insurer-approved garages or workshops with expert technicians in their teams are allowed to perform the repair tasks.
• Sometimes, independent repairers prove to be more competent than technicians at authorised dealerships as they gain more knowledge and learn advanced skills to compete with established authorised companies. 

Agency Cover or Non-agency Cover: Which One is Suitable for Your Car?

Agency repair cover ensures genuine spare parts for the vehicle, expert guidance for car maintenance and peace of mind for you! However, the cost for providing agency repair cover is a little high. Consequently, adding the coverage to the motor insurance increases the overall premium amount. Also, the turnaround time  can be slower due to possible delays in managing the systems, parts delivery and so on.

On the other hand, non-agency repair cover includes quick and cost-effective repair and replacement under insurer-approved and pre-tested garages and workshops. The parts may not be the original ones made by the car’s manufacturing brand, yet the spare parts are highly qualified and ensure strong performance.

Considering these factors, car owners should decide which option suits their needs, preferences and budget. According to expert opinions, agency coverage is suitable for brand new, high-value or high-tech luxury vehicles that are still under warranty.

Final Words

Keeping the car safe and sound while following legal regulations and maintaining car owners’ budget is important! So, it is recommended to look for the option which fulfils all these requirements. Agency repair cover is the mostly-provided option for the first 2-3 years after the purchase of the car. When the period ends, the car owner can extend it for more years or switch to non-agency repair coverage.  Car owners can rely on leading insurance service providers like COVERB in the UAE to avoid such consequences.