Getting vehicle insurance in the UAE is compulsory before you go for its registration. Insurance companies naturally try and charge high for their insurance policies; you have to be witty to secure yourself a lower auto insurance rate. We have compiled a list of tips you can follow to get discount on your insurance premium in the UAE.
Survey to Lower Auto Insurance Rate
Do not take this first tip lightly. It is essential to explore all the options before settling for one insurance provider. Some companies provide comprehensive packages but charge higher, while others may give you lower rates but offer a subpar service. Gather information from different insurers, get opinions from your friends, and choose a firm which provides optimum service for the amount you’re going to pay.
Try buying a low-profile car
The insurance rate you get largely depends on the vehicle you own. If you have a full-size SUV or a sports car, the insurance you’ll have to pay on it will be very high. The more expensive vehicles come with higher maintenance and repair costs, so insurance providers charge higher premium on them. If you possess an economical car, you can easily find a cheap insurance policy for it.
Increase your deductible
The deductible is the amount you pay yourself for car repairs in the event of an accident, before the insurance takes care of the rest. For example, if you set the deductible at AED 1000, you’ll have to pay for any repair costs up to this amount yourself. Beyond this amount, however, the cost is covered by the insurance company. Setting your deductible at a higher value than normal will dramatically decrease the annual premium you’ll have to pay. However, keep in mind the amount you can afford to pay in lump sum if you’re required to, and never set your deductible higher than that amount.
Stick to your old insurance provider
Even though we recommend shopping around for the best insurance policies, at the end of the day it’s better to stick to your old insurer. Some insurance companies not only insure your vehicles, but provide health and home insurance as well. In case your insurance provider gives you this option, and you’ve already purchased a home through them or opted their health insurance, it’s better to combine your auto insurance with the existing plan. This would give you discount on the actual premium for the auto insurance you purchase.
Gain the trust of your insurer
Insurance firms need reassurance before giving you low insurance rates. After all, if you’re accident-prone or your car shows signs of frequent damage, your insurance provider is bound to assume you’ll cost them a lot of money. Here are a few tips to reassure the insurance firm:
- Take a defensive driving course. It gives an assurance that you’re considerate about your safety and your car’s well-being. If you can prove you’re a safe driver, it can lower the premium considerably.
- Keep a maintenance record of your vehicle. If you’re buying a used vehicle, make sure you buy the one with a complete maintenance record. If you present this to your insurer, it shows how meticulous you are in keeping your car in good working order.
- Drive safely at all times. If your accident record is a clean slate, it gets you low insurance rates, as the insurer trusts your driving skills. Build up a safe driving record.
Know exactly what you need
Insurance providers tend to offer you a lot of facts and figures, as well as varieties of policies, all in an effort to help make up your mind. This can get you confused and you may make a hasty decision. You need to educate yourself before you start exploring various policies.
- Check if you only need third party insurance. The third party insurance comes cheap, and only covers damages to the other vehicle involved in an accident with yours. Your own car is not covered. If this can cover your needs, it costs much lesser than the comprehensive insurance.
- Check for discounts that are being offered according to your age group and occupation. Doctors and engineers are sometimes given lower auto insurance rates, because they are considered “safe” occupations. Similarly, senior citizens are offered cheaper insurance merely because they’re considered to be skillful and mature drivers.
In short, you must know exactly what you need and what discounts you can get, before you buy an insurance policy for yourself in the Emirates. Following these simple tips can help ensure that you get the best deals.