Agency and Non-Agency Repair in Motor Insurance

Agency and Non-Agency Repair in Motor Insurance 18 Jun, 2022

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

Agency and Non-Agency Repair


What does it mean and what is the difference?

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.

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.

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.

  • 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.


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


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