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Khaleej Times
26-06-2025
- Automotive
- Khaleej Times
UAE: Why it costs more to insure a Chinese car than a Japanese or Korean car
The auto market has witnessed rapid growth of Chinese cars in the UAE roads, but owners face a higher insurance premiums compared to their Japanese and Korean counterparts. UAE motorists pay up to 43 per cent more to insure Chinese vehicles, driven by a mix of perceived risks, higher repair costs and uncertainty in repair timeline. "The average comprehensive premium for a Chinese vehicle is around Dh2,800 to Dh3,000 for a sedan or crossover compared to Dh2,100 for Japanese and Korean brands. This is typically due to uncertainty in repair timelines, limited historical claims data and higher perceived repair costs,' said Hitesh Motwani, Deputy CEO at He added that repairs tend to be more expensive and slower than those of Japanese and Korean models due to parts availability delays, fewer specialised repair shops, and a greater reliance on dealer networks. 'This has led insurers to maintain higher premiums to offset increased claim costs and longer vehicle off-road time.' As the after-sales network for Chinese vehicles improves, he expects this to gradually normalise. Demand and interest in Chinese cars have grown significantly over the past few years, as many new brands have entered the UAE, and confidence and trust in these brands have improved substantially. According to a study by technology and consulting company Carma, Chinese automotive brands are gaining global media confidence, with limited outright scepticism. Through a variety of online articles, media in the Philippines, Malaysia and the UAE showcased the highest levels of confidence in Chinese automotive brands – over 60 per cent confidence in each of those markets. 'Interest in Chinese brands has grown significantly, from just 2 per cent of total car insurance enquiries in early 2023 to over 10 per cent by mid-2025. Key drivers include improved design, technology, warranty support, and most notably, affordability without sacrificing reliability,' Motwani told Khaleej Times. He pointed out that the record rains in early 2024 – which caused massive damage to vehicles in Dubai, Sharjah, and the Northern Emirates – were one of the key factors that shifted the trend. 'The April 2024 floods marked a notable shift. Many residents had to replace their damaged vehicles and began opting for more economical, readily available ones, a space where Chinese brands excel. This sparked a surge in interest in the second and third quarters of 2024,' he added. Brands like Omoda and Jaecoo, BYD, Jetour and others have made a strong mark in the local market. 'Top performers include MG, Jetour, Geely, and Changan. MG consistently leads in lead volume, while Jetour and Geely have gained ground since 2024, especially in the SUV and crossover segments,' he added. The deputy CEO of Insurancemarket noted that many buyers initially viewed Chinese cars as temporary or cost-driven decisions. 'But now, customer feedback shows increasing brand loyalty and satisfaction, especially with tech features, fuel economy, and warranty coverage.' To respond to the rise of Chinese brands, insurers in the UAE are quickly adapting by building brand-specific risk models, partnering with authorised workshops and importers, and offering tiered pricing. 'As more data becomes available, we're seeing better segmentation, leading to fairer premiums and better coverage options,' concluded Motwani.
Khaleej Times
08-06-2025
- Khaleej Times
More UAE residents buying travel insurance when visiting home countries; here's why
The trend is growing among UAE residents to buy travel insurance, even when travelling to their home countries, due to increased awareness of potential risks such as medical emergencies, travel disruptions, or baggage issues, according to insurance industry executives. Outbound travel peaks during the summer, when schools are closed and many families visit their home countries to vacation with loved ones. Hitesh Motwani, Deputy CEO at said there is a noticeable trend of UAE residents purchasing travel insurance even when travelling to their home countries. 'This shift is driven by increased awareness of potential risks such as medical emergencies, travel disruptions, or baggage issues that can occur regardless of familiarity with the destination. The affordability of travel insurance also contributes to its growing adoption among travellers seeking comprehensive protection during their trips,' he said. Toshita Chauhan, business head of general insurance, said, ' Yes, we've definitely seen that shift. More and more UAE expats are buying travel insurance when flying back home for holidays — especially during summer, Eid, or school breaks.' She added that even if they're going somewhere familiar, many realise that medical expenses or flight delays aren't always easy to manage. 'The ease of comparing policies online and the affordability of plans has made it a convenient decision for most. Syrian insurance plan Syria is considered a high-risk destination due to ongoing political instability and conflict. Chauhan added that some travellers do buy travel insurance when flying to Syria, particularly for medical emergencies, trip delays, or baggage loss. Importantly, most travel insurance policies explicitly exclude coverage for war zones, areas under conflict, or destinations marked as high-risk by government advisories. She advised travellers that before purchasing a policy, travellers should confirm if Syria is included in the policy's coverage region. Due to the complex risk profile, travellers are strongly advised to proceed with extreme caution and ensure they have complete clarity on coverage terms before making the trip. Hitesh Motwani added that travel insurance coverage for Syria is generally limited due to its classification as a high-risk destination. 'Many insurers exclude war-prone countries from their standard policies, making it challenging to obtain comprehensive coverage for travel to Syria. As a result, most travellers to Syria may not purchase travel insurance, either due to limited availability or the perception that coverage won't be applicable. For those seeking insurance, specialized policies with higher premiums and restricted benefits may be available through select providers, but these are exceptions rather than the norm,' he added.
