Top 10 Tips To Cut Down Car Insurance In UAE
Like many other parts of the world, car insurance is mandatory in the UAE. So, whether you are a resident of Abu Dhabi, Sharjah, Dubai, or any other emirate, you cannot bring your car on the road in any situation without having valid car insurance. If caught without insurance, you will be heavily penalized and get demerit points on your license. Repeat offenders are likely to be jailed.
An insurance policy gives you peace of mind and financial security in an accident. Many insurance companies are operating in the UAE, making it challenging to select one. You need to make sure that you opt for the company which provides the best insurance policy. Insurance can be a bit expensive if you are not careful. But there is no need to worry.
There are certain ways you can cut down your insurance cost in the UAE. We will be discussing these options in this article.
HOW TO CUT DOWN CAR INSURANCE COST
1. MAKE A COMPARISON
As there are lots of insurance companies in the UAE, they try to attract as many customers as possible by giving great deals on insurance. If you do not compare various companies, you will miss out on a good insurance policy plan. When you compare, you will notice that some companies are offering more coverage at a lower price than the company you selected on the first go. You should always compare first instead of just opting for the first company you see.
2. GO THROUGH MILEAGE POLICIES
It may strike as a new piece of information. The cost of your car insurance is greatly affected by how much and how often you drive your vehicle. Someone who drives their vehicle once a week would have a lower premium than an individual who drives the car every week of the day. The lower the mileage, the more chances of getting a discount on your premium amount. So, you should get in touch with your auto insurance provider and ask for the mileage policy. The mileage policy varies from company to company.
3. CONSIDER DOWNSIZING
The cost of insurance depends on the price tag of the vehicle. The more expensive the car, the higher the insurance policy is. The reason behind high insurance costs is that these luxury cars have a very high repair cost in case of an accident. Their price tags are expensive, but repair and maintenance costs are equally expensive as well. To cut down on high insurance costs, you should consider downsizing your car. You should buy a less expensive car that does not have a high insurance cost. If a small vehicle meets your demand, just like a luxury one, you should think about downsizing as you can save a great amount of money on your insurance.
4. FEWER CLAIMS
You can get many discounts on your insurance if you spend a whole year without making any claims. The discount increases yearly, and eventually, you can get a 50% discount. If you are involved in an accident, and the cost required to fix it is not significant, consider getting it repaired from your own pocket. In the long run, it would be beneficial to save a great deal of money on insurance discounts due to no claim
5. TAKE A DEFENSIVE DRIVING COURSE
There are courses that are designed to help a driver avoid accidents. Such courses are referred to as defensive driving courses. If you haven't completed the course, consider doing it. The benefit is that insurance companies give a good number of discounts on insurance premiums to those individuals who have completed this course. The benefit for insurance companies is that people who have taken the course reduce the risk of getting into an accident. This in-return decreases the risk for the insurance providers.
6. ADD NEW UPGRADES
Indeed, a modified car does not get auto insurance comfortably. Hence, experts recommend that you don't do any mods on your vehicle. However, certain types of upgrades go well with the insurance companies. One of these upgrades is an anti-theft device. If your car has one, insurance companies will be willing to give you plenty of discounts on your insurance policy. Having an anti-theft device installed would mean that it lowers the risk for insurance providers.
7. CREDIT SCORE HISTORY
Your credit score card history plays an essential role in deciding your insurance premium and discounts. Insurance companies check your driving record, but they also check if the person has a good credit score history. Having a good credit score reflects that a person can be trusted. If you have a good credit score, you will get a good discount on your insurance policy. From a company's perspective, they want to deal with someone who can be trusted with their finances. Check out our article on how to improve your credit score.
8. KEEP AN EYE OUT FOR NEW DEALS
It would be best if you did not stop researching after you get insurance. You should always be on the lookout for new insurance coverage deals and discounts offered by other companies. Those policies may be much better and more cost-efficient than your existing insurance coverage. Companies from time to time provide new packages and discounts to attract new customers. So don't think that your job is finished after buying insurance. Be on the lookout for something better and less costly.
9. STICK TO YOUR REQUIREMENT
When you buy a new car, you can get carried away and add things to your insurance policy that you don't need at all. Insurance agents also take advantage of this situation and convince you to add stuff you don't need. All this adds to your insurance cost and becomes expensive. For instance, you don't need hailstorm coverage if you live in a city and barely go on an off-road adventure. You should stick to your requirements and only buy coverage that you think is essential for your car's protection.
10. LOCATION
Your insurance coverage may have a different cost in other cities in the UAE. An insurance plan that may be cost-efficient in Sharjah may not be cost-efficient in Dubai. Meaning the insurance company may charge you more depending on the city. If you plan on moving somewhere else in the UAE, make sure to contact your insurance provider and find out about the new insurance cost. Moreover, an insurance plan offered by a company in that city may be much more suitable and feasible for you than your existing plan, which is from a different city. So, check the insurance plans offered by the companies in the emirate you wish to move.
Wrap Up
It concludes our article on the top 10 tips to cut down your car insurance costs in the UAE. If you have any questions, do not hesitate to contact us. Thank You.