Car Insurance Myths Every UAE Driver Should Stop Believing

Car insurance is one of those things every UAE driver must have — but not everyone fully understands. Between hearsay, outdated advice, and half-truths shared among drivers, several car insurance myths in UAE continue to circulate, costing motorists time, money, and peace of mind.

At Scrap My Car UAE, we’ve seen countless cases where car owners hold onto myths that lead to higher premiums, denied claims, or unnecessary stress. Let’s separate fact from fiction and make sure you know exactly how your car insurance really works in the UAE.

1. Myth: “I Don’t Need Comprehensive Insurance If I’m a Safe Driver”

Even the most cautious driver can’t control everything — weather, road conditions, or other drivers. Basic third-party insurance only covers damages to the other vehicle in an accident. If your car gets damaged, stolen, or written off, you’re on your own.

Comprehensive insurance, on the other hand, covers both your vehicle and others involved. In a country where road accidents are common, this isn’t a luxury — it’s peace of mind.

If your old or heavily damaged car is too expensive to insure comprehensively, consider scrapping it with Scrap My Car UAE instead of paying inflated insurance fees on a vehicle that’s losing value every day.

2. Myth: “Insurance Covers Everything No Matter What”

This is one of the most dangerous car insurance myths in UAE. Insurance doesn’t automatically cover every incident. Policies have exclusions that vary from one insurer to another — for example:

• Damage from off-road driving (unless stated in the policy)

• Unapproved car modifications

• Driving under the influence or without a valid license

• Natural disasters (in some cases, unless “Act of God” coverage is included)

Always read your policy carefully and ask for clarification before signing.

3. Myth: “Cheaper Insurance Is Always Better”

Saving money upfront can cost you more in the long run. Low-cost insurance plans often have higher excess (deductible) charges, limited coverage, or poor customer service.

Instead, look for value, not just price. Compare policies across trusted platforms and review what’s included — like agency repair, roadside assistance, or personal accident coverage.

At Scrap My Car UAE, we’ve met drivers who spend thousands repairing old cars with limited insurance, only to realize scrapping would’ve been more economical.

4. Myth: “My Insurance Premium Won’t Change if I Renew With the Same Company”

Many drivers assume loyalty equals lower rates — but not always. Insurers often adjust premiums yearly based on market conditions, claim history, and even inflation.

It’s always worth comparing quotes before renewal. You might find a better deal elsewhere, or your current insurer might offer a discount when they see you’re shopping around.

5. Myth: “If I Modify My Car, I Don’t Need to Tell the Insurer”

This is a costly mistake. Performance or cosmetic modifications — from upgraded exhausts to tinted windows — can change your car’s risk profile.

If you fail to declare these changes, your insurance could become invalid, and any claim might be rejected. Always notify your insurer and get RTA approval for modifications when necessary.

If your modified car becomes too costly to insure, Scrap My Car UAE can help you sell it quickly and legally for top cash.

6. Myth: “Old Cars Can’t Be Insured in the UAE”

While some insurers hesitate to cover vehicles over 10 years old, it’s not impossible. Specialized insurers offer limited plans for older cars — usually third-party coverage only.

However, if your vehicle is constantly failing RTA tests or costing more to insure than it’s worth, scrapping is often the smarter move. With Scrap My Car UAE, you can get free car removal, instant cash, and eco-friendly recycling for any make or model.

7. Myth: “I Don’t Need to Transfer My Insurance When Selling or Scrapping My Car”

When you sell or scrap your car, your insurance policy doesn’t automatically cancel. If you forget to transfer or terminate it, you could be paying for coverage on a car you no longer own.

Always inform your insurance company and request confirmation in writing. If you’re scrapping, Scrap My Car UAE handles all the documentation for you — ensuring a clean, legal transfer process.

Final Thoughts: Drive Smart, Insure Smarter

Car insurance doesn’t have to be confusing — but believing the wrong information can cost you big. Understanding the truth behind these car insurance myths in UAE helps you make smarter financial and safety decisions.

And if your car is too old, damaged, or expensive to insure, let Scrap My Car UAE handle it for you. We make the process fast, fair, and hassle-free.

🚗 Call or WhatsApp: 055 745 83 22

🌐 Visit: scrapmycaruae.com

📘 Facebook: scrapmycarUAE

Turn that costly, uninsured car into instant cash — and drive worry-free with confidence and clarity!