Car insurance is necessary to retain your privilege to drive in the UAE. If you are a new driver, car insurance is not cheap. But, a car insurance ensures that you have a peace of mind while you are driving or even when the car is parked in a parking space. You get cover for the damage to your car and for third party and it covers the items in your car.
How can you cut down the cost of car insurance?
Though taking a car insurance is unavoidable, it needn’t be an expensive cost. You can follow the tips to help cut the cost of premium significantly. The tips to cut cost are as follows:
- Get multiple quotes: You need to shop around a lot as the premiums and the costs differ from company to company. Once you have multiple quotes, you can start comparing them and you can also use the information to bargain for a better deal with the providers. This ensures that you will find the best deal. If you are employed, you can also check with your employer if they have any corporate scheme and check if they have competitive rates. The best way to get a hold of multiple quotes is that you approach an insurance broker.
- Avail a NCD: You must maintain a clean driving record. The providers give cheaper premiums to safe drivers when they are renewing the policy. You are eligible for ‘No Claims Discount’ if you have not made any claims for own damage during the year. If you are continuing with the current car insurance provider, they will have the records. But, if you are changing the provider, you will have to provide them with the NCD. A few providers charge a nominal fee to provide you the NCD, but most of them provide NCD for free.
- Avoid extras: Do not take on unnecessary additions to your insurance. You may be using the additional features rarely but you are paying towards it even if you haven’t used the service. If you have more than one car at home, then you need not opt for the car rental option. Avoiding these options make a noticeable difference in your premium payment.
- Opt for multiple vehicles discount: Most UAE residents have more than one car in the family. If you have multiple vehicles registered under your name, use one provider for all the vehicles and avail the multiple vehicles discount. Even if they don’t offer it, ask for the discount. If the provider still doesn’t offer you the discount, approach an insurance broker, he can get you a discount even if the vehicles get insured with different providers.
- Raise the deductibles: Deductible is the amount you are liable to pay in the event of an accidental damage. If you are increasing the deductible, the provider will significantly reduce the premium. This shouldn’t affect you as long as you are a safe driver and have a clean record.
- Lower the car value: This is not really a good option, but it does reduce the premiums. Here you are agreeing to show that the value of the car is lower than the actual market value of the car. This could give you a good discount on the premiums. It is advisable to keep the vehicle value on par with the market value.
The best way one can save on the insurance premium is to be a safe driver and have a clean record. You must always shop around and get multiple quotes and compare them before you take a decision. If you have multiple cars under your name, you can consider taking insurance from one provider and asking for discount for the same. If nothing works, you can approach the insurance broker to get you a good deal.