MoveSouq.com’s Interview with QIC Insured
Dubai, United Arab Emirates - Monday, April 4th 2016 [ME NewsWire]
We’ve all thought about it: owning our dream car. But there is more than just the cost of the car to consider when you buy a car worth AED 300,000+. One important consideration is insurance, which will be a recurring cost for as long as you own the vehicle.
MoveSouq.com sat down with Prasanna Venkatesh, Vice President for Motor Underwriting at QIC Insured, to provide a guide to insuring a luxury car.
MS: Is it cheaper to insure a new or used luxury car? Does the age of the car make a big difference?
QIC: It is generally cheaper to insure used cars than new ones. The “sweet spot” from an insurance point of view is 2–3 years old. At this age, most cars are still under warranty and eligible for agency (dealership) repairs in the event of an accident.
MS: What about the type of car? Are luxury sedans significantly cheaper to insure than luxury sports cars?
QIC: High-performance vehicles (HPVs) commonly known as sports cars, such as Ferrari and Lamborghini cost much more to insure than high-value vehicle (HVV) brands like Rolls Royce and Bentley. The premium for a sports car vs. a luxury sedan can be up to 40%. This is because of the higher risk of the cars and driver profiles associated with sports cars.
Keep in mind that the annual premium for HPV insurance can be up to 6% of the car’s value – a significant jump from standard comprehensive insurance, which is 3-4% of the car’s value.
MS: How do I do a background check on the car I’m buying?
QIC: Check the following:
Warranty, which usually lasts three years or 100,000 km. Warranty terms vary by manufacturer.
Service history. Make sure the previous owner has kept up with the prescribed service schedule.
Passing certificate from RTA Vehicle Testing Center (VTC) for any irregularities.
GCC specs, which can be checked in three places: 1) RTA passing certificate 2) inside panel of the driver’s door or 3) on the left corner of the dashboard visible through the windscreen.
Cars with GCC specs are almost always cheaper to insure. Be wary of non-GCC cars because not all insurance companies will insure them.
MS: Should I get agency or garage repairs?
QIC: Agency repair is best since luxury cars tend to have sensors/controls that cannot be fixed or replaced in most third party garages. Since the option for agency repair generally expires three years from the date of first registration, look for an insurance company that offers premium garages that can service luxury brands if your agency repair option has expired.
MS: What should I look for in an insurance provider?
QIC: Customers should use an insurance company rated by international credit rating agencies to ensure that the company has the ability to settle a large total loss claim. It’s worth an additional few hundred dirhams for the peace of mind that your underwriter will actually come through if you file a large claim.
About QIC Insured:
Established in 1968, Qatar Insurance Company in the UAE (QIC UAE) is a branch of Qatar Insurance Group, the leading insurer in the MENA region. QIC Insured is the retail brand for personal insurance offerings from Qatar Insurance.
About MoveSouq.com: MoveSouq.com is an online home services marketplace in the UAE and Qatar that provides customers with quotes and bookings for moving, home services and insurance.
Maria Siddiqui, +9714-4229639
Qatar Insurance Company (QIC Insured)
Prasanna Venkatesh, +9714-2224045