When you buy comprehensive car insurance in the UAE, you often get to choose how your car will be fixed after an accident — at the manufacturer’s agency or at a garage approved by your insurer. This choice affects your premium and the way your car is repaired. Here is a clear look at both options.
What is Agency Repair?
Car insurance in the UAE with agency repair means your car is repaired inside the manufacturer’s own authorised workshop, known as the “agency.”
- The car is fixed at the brand’s official workshop.
- You can ask for brand-new original parts (a small share applies, based on the car’s age – see the table below).
- The car insurance premium is usually higher than non-agency cover.
What is Non-Agency Repair?
Non-agency repair means your car is fixed at a garage that your motor insurance company has approved. UAE rules protect you here:
- The insurer must make sure the car is repaired properly, carefully, and professionally.
- The approved garage gives a warranty on the repair work.
- If the repair is found to be below the required standard, the insurer must have it corrected until the car is repaired properly.
- The car insurance premium is usually lower than agency cover.
Quick Comparison: Agency Repair vs Non Agency Repair
| Point | Agency Repair | Non-Agency Repair |
|---|---|---|
| Where the car is fixed | Manufacturer’s own workshop | Insurer-approved garage |
| Cost/premium | Higher | Lower |
| Best suited for | New, luxury or in-warranty cars | Older or common cars |
| Who warrants the repair | The agency workshop | The approved garage |
What the UAE Rules Say?
The Central Bank’s Unified Motor Vehicle Insurance Policy sets clear rules for comprehensive (loss and damage) cover:
- After an accident, the insurer must repair your car and return it to its condition before the accident or pay you in cash if this is agreed.
- If you want agency-workshop repair after your car’s first three years on the road, you can ask for it when you take the policy. The insurer may agree for an extra premium, within the official price limit.
- If you ask for brand-new original parts instead of the damaged ones, you pay a share based on your car’s age. This is called the depreciation percentage.
| Age of the car | Share you pay on new parts |
|---|---|
| First year | Nothing |
| Second year | 5% |
| Third year | 10% |
| Fourth year | 15% |
| Fifth year | 20% |
| Sixth year and above | 30% |
Which One Should You Pick: Agency or Non-Agency Repair?
Remember the following pointers while picking up the motor insurance policy repair options:
- Pick agency repair if your car is new, still under warranty, or a luxury model.
- Pick non-agency repair if your car is older or a common model and you want a lower premium.
Remember: Agency and non-agency repair apply only to comprehensive car insurance plans. Basic third-party liability, which is the mandatory minimum by law, does not repair your own car.
Featured image by Policy Bazaar
