Car insurance is made mandatory by the traffic and transportation authorities in most parts of the world, especially in the Gulf States. For instance, the traffic department in United Arab Emirates asks for 13-month insurance certificate each time you register or renew your auto insurance. This certainly adds up to the expense of the car, but it does have its respective benefits. Here in this article, you will find some tips to reduce your vehicle insurance rate through bundling. In the insurance context, bundle is a combination of multiple insurance policies bought from the same insurer.
Use Property Insurance to Reduce Vehicle Insurance Rate
Insuring your own house or any other property with the insurer that your car is already insured with, can bring you special discounted rates. Property or home insurance is offered by almost every insurance company in the Middle East. Consult with your car insurance provider and discuss your current insurance rate that you have agreed to. Tell the company representative that you want to insure your house or property with them, only if they agree to lower the insurance rate. We can also take it the other way round, meaning bundling your already insured home with the car insurance.
Life and Health Insurance
Life and health insurance are one of the best policies to address the uncertainties in your life. The life insurance is meant to support your family, if you are not there to maintain them yourself. On the other hand, health insurance takes care of your future medical expenses as agreed in the insurance terms. Life and health insurance are significant insurance products. Therefore, the insurance providers usually offer big discounts if you couple your car insurance with them.
Insure Multiple or Alternative Vehicles
If you have multiple cars registered under your name, you can claim good discount from your insurance company by insuring all the vehicles with them. For example, AIG Insurance Company UAE has listed multiple discounts as a key benefit of the car insurance policy offered by them. Similarly, you may have an alternative vehicle like motorcycle, boat, dirt bike or all-terrain vehicle for adventurous driving experience on a day out. Such vehicles can also be insured to be secured, as well as to demand low insurance premium.
Bundle it with Auto Finance
Many banks are now extending financing as well as insurance services, simultaneously. If your car is being financed by a bank that is also providing vehicle insurance, you can request them to waive off some amount on your insurance premium or even the loan payments. Similarly, if you intend to buy a new car through a bank, negotiate on the loan markup and insurance rate, and include it in the terms of agreement. For instance, HSBC Qatar is offering comprehensive auto insurance at competitive rates to their auto loan customers.
Vehicle insurance is a very useful tool that covers property damage including roadside emergency assistance, vehicle theft and many other losses. It is not at all clever to save one’s self by not acquiring the vehicle insurance, rather paying low insurance premiums through bundling is a wise move.