Learn about agency and non-agency repair options in motor insurance to make informed decisions about your coverage.

If you are purchasing car insurance for the first time you might be wondering, what exactly is Agency Repair? Do you really need that to be covered under your insurance on the Vehicle? Does it matter if I keep the vehicle under Agency or Non-Agency? What are the differences? More often than not most frequently asked questions are about agency and non-agency repairs. You must have a thorough understanding of your coverage and the pros and cons of both repairs before choosing the right coverage for your beloved vehicle.

As per the law, when a vehicle is purchased in the UAE whether brand new or used, it has to be insured before the registration of the car under the owner’s name. This means getting into a contract with an insurance company either directly or through an insurance broker with the promise of having the vehicle covered in case of any accidental repairs that may take place in the future.

What does agency repair mean and what is the difference?

Insurance companies in general provide 3 years of agency repairs coverage from the first date of registration or Model year (Depending on the insurance company you choose) under their policy. This means in the unfortunate situation of a road accident, when an accidental repair needs to be done on the vehicle, it will be taken to the dealership and the vehicle will be repaired under the agency service itself. Whereas once the free Agency Repair period is over, the insurance company will move the vehicle to non-agency repair terms and this means in case of any accidental repairs, the vehicle will be taken to one of the approved garages of the insurance company

The tenure of the agency repair period will vary depending on the insurance company. There are some insurance companies that provide free agency Repair for 3 Years and some that provide for 2 Years. Usually there is a higher premium attached to agency repairs compared to non-agency repairs

Few multinational insurance companies provide an option to their customers to extend the agency repair coverage for up to 5 years with an additional premium in order to keep the vehicle warranty intact. Since most vehicles have a Warranty of 5 years while purchasing the Vehicle, if the vehicle is repaired outside the dealership in case of an accident, the warranty will be void.

One of the few points you should bear in mind while buying a motor insurance policy to avoid disputes in the event of a claim is to check whether the vehicle would be repaired in the Agency or will undergo repairs in one of the panel workshops of the Insurance Company, also known as Non-Agency Repairs.

Types of Repair Coverage in Car Insurance

• Agency Repairs:

If you opt for agency repairs, you can get your damaged car repaired at a car dealership from where you bought your car. An insurance policy with ‘agency repair’ guarantees that the insurance company will have your car repaired at the manufacturer’s official dealer, importer or agency.

In the case of agency repair, if the vehicle has any accidental repair to be done, they normally replace the part with a brand-new vehicle part, since this is mostly expensive for the insurance company to cover during a claim, they do not provide Agency after 3 years.

Agency repairs guarantee quality service by qualified technicians, use of genuine spare parts and thorough inspection and assessment of the damage. All reputed insurers offer agency repairs on your brand new car and if you’ve been claims-free for more than three years or if your vehicle is still under warranty. Insurance company only offer agency repair as an option if your car is less than anywhere from one year old to five years old. But that depends on the insurer.

• Non- Agency Repairs:

Non-agency Repair is a service offered by a workshop or a garage that is approved by your insurance company to repair any damage to your car in the event of an accident. Usually people have apprehension about non-agency repair clause. Non-agency repair is reliable and often less costly than agency repairs. The repairs are carried out by workshops approved and pre-tested by the insurance company. Another advantage is that you can get your vehicle repaired quicker than by the car dealership workshop. However, if you prefer to get your car repaired at the authorized dealership even if your policy has a Non-Agency clause, you can do so by paying the difference in the cost of repairs subject to approval by the Insurance Company.

• Generally, customers prefer keeping their vehicle under the Agency Repair cover since it is the safest and best option for them.
• The Premium payable to keep the Vehicle under Agency after the free agency repair period is quite expensive and this is one of the main points taken into consideration while choosing Agency or Non-Agency.
• There are insurance companies that even provide Agency Repair cover extension up to even 6 years depending on the history of the Vehicle with them.
• Some of the leading insurance companies in UAE provide a guaranteed Certified Non Agency garages for the Vehicle in case they are not under the Agency coverage which makes it easier for people on budget to choose that rather than spending a lot on almost similar service from Agency.

Conclusion

Thus, to conclude, Agency Repair and Non-Agency Repair, in general, refers to the garage where the Vehicle will be repaired in case of any accidental claim  It might seem like a daunting decision  however it is not a difficult choice to make since the options for non-agency are almost as great in service due to competition in the market.

Whether you are looking for a comprehensive car insurance quote with agency repairs or non-agency, you can reach out to our team of car insurance experts here