7 Car Insurance Myths UAE Drivers Still Believe—And What’s True
Oct 7, 2025
Don't let car insurance myths drive you off course. Separating fact from fiction can save you money and ensure you're adequately protected on the road. Let's debunk some of the common misconceptions and get you back on track, but first:
What's the truth behind the insurance policy?
Car insurance in the UAE is more than just a legal requirement—it's your financial safety net on the road. Yet, despite how common insurance is, there are still so many car insurance myths floating around that lead people to overpay, underinsure, or simply choose the wrong policy.
At Kamal Insurance, we believe in clarity and transparency. That’s why we’re busting some of the most common car insurance myths in the UAE—especially around third-party coverage, which we specialise in.
Let’s set the record straight:
Myth 1: “Third-Party Insurance Covers My Car Too”
Truth: Third-party insurance only covers damages you cause to others, not to your vehicle.
It’s the minimum legal requirement in the UAE, and while it's more affordable, it doesn’t include protection for your car in the event of theft, accident, or damage.
🛡️ At Kamal, we offer the best third-party coverage at unbeatable prices—so you’re legally protected without overpaying.
Myth 2: “The Cheaper the Policy, the Better the Deal”
Truth: While affordability matters, cheaper isn’t always better.
Ultra-low-cost policies might leave out critical features like roadside assistance or a solid claims process. Worse, they may come with high deductibles or limited support.
💡 A good deal balances cost with value. Kamal’s digital platform ensures you get real-time, no-hassle third-party coverage with all the essentials included.
Myth 3: “My Dealer Will Give Me the Best Insurance”
Truth: Not always. Car dealers often offer plans tied to high commissions, not in your best interest.
When you go direct (especially online), you can compare prices, review benefits, and choose what's right for you, without paying for middlemen.
📲 With Kamal Insurance, you can skip the paperwork and buy directly online in minutes—no calls, no upselling, just insurance.
Myth 4: “Comprehensive Insurance Covers Everything”
Truth: Comprehensive policies are broader but not bulletproof.
They still exclude things like mechanical breakdowns, illegal modifications, or wear and tear. Want agency repairs? That’s an add-on. Need off-road coverage? That’s extra, too.
⚠️ Don’t assume—always check the fine print. At Kamal, we make your third-party cover crystal clear from the start.
Myth 5: “Personal Accident Cover Means All Medical Bills Are Paid”
Truth: Personal Accident Cover provides a lump sum payout in case of serious injury or death, not hospital expenses or daily treatment.
You’ll still need health insurance to cover surgeries, tests, or rehab after an accident.
📌 We recommend pairing your car insurance with a robust health plan, and we’ll help clarify what’s covered.
Myth 6: “Mechanical Repairs Are Covered by Insurance”
Truth: Standard car insurance—even comprehensive—does not cover wear and tear or mechanical failures.
That means a broken AC compressor or worn-out brakes aren’t insured. Only accident-related damage (and that too under specific terms) is typically covered.
Routine car maintenance is your responsibility. Insurance is protection from unexpected events.
Myth 7: “It’s Okay to Delay Renewal—I Have a Grace Period”
Truth: UAE law gives you a 7-day grace period, but driving uninsured — even for a day — is illegal.
Plus, if something happens during that grace window, you might not be covered.
🔁 Kamal makes renewing your third-party policy online quick and painless, so you stay road-legal and stress-free.
Bonus Myth: “Insurance & Registration Can Be in Different Names”
Truth: Nope. UAE traffic law requires that your insurance and registration match.
No exceptions. Trying to insure under someone else’s name? That’s a big no-go and could void your policy.
📝 Kamal’s digital system helps ensure all details are correct before you pay. That’s one less thing to worry about.
Summary: Don’t Let Myths Cost You
| ❌ Myth | ✅ Truth |
|---|---|
| Third-party covers everything | It only covers others |
| Cheapest = best | Balance price with value |
| Dealers offer the best rates | Online is smarter & cheaper |
| Comprehensive = full coverage | Exclusions apply |
| Accident cover = full medical | It's limited to lump-sum payouts |
| Insurance covers breakdowns | Only accidents, not wear & tear |
| Grace periods are safe | You may be uninsured during that time |
Still have questions? Our support team is just a click away
Whether you're renewing your car insurance or buying it for the first time, don’t fall for the hype. Choose clarity. Choose simplicity. Choose Kamal — the UAE’s go-to destination for fast, affordable third-party insurance.
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