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10 Tricks for Saving on Your Auto Insurance

Posted by : Premraj | Posted on : Sunday, February 23, 2020


If you own a car in Dubai, you need to make sure that you are covered for the incidents, which may happen due to any reason.

However, your insurance may not only become expensive for you, but it may also add up with time. In case the renewal of your policy is round the corner, then you must reassess it for ensuring that you have not been spending more than necessary.

Through this article, we want to help you in making your insurance journey easier by diverting your focus on some handy tips that can be used for saving more on the coverage for your vehicle. And enjoying some extra dirhams for yourself.

Tip 1. Selecting the Car Wisely

Your insurance provider will calculate your premium on the basis of various variables, including the car type. They consider the specifications of your car, from the year, model, type, as well as safety features. All of this may be added or subtracted from the premium charged. For instance, usually, coverage for an SUV or sports car may cost you more. This, however, is only one of such factors.

Tip 2. Getting Various Quotes and Making a Comparison

You can save around 50% by obtaining various quotes from different car insurers and comparing the policies. The policies you get from your banks or car dealerships may, in some cases, be more expensive. Hence, looking for more options for car insurance online can prove to be a good idea.

After all, no particular provider has suitable deals for every customer. Most of the providers cater to only a specific segment of the cars as well as customers. Therefore, it is essential that you look for a policy that suits you the best.

Tip 3. Getting Your Vehicle in Shape

As we have discussed above, an insurer will always consider the vehicle they are insuring. This is a precautionary measure so that in case they do have to pay out, they can save some money too. You can also think of adding certain safety features to the vehicle such as a tracker, alarm system, or more. The insurers also see how “vulnerable” your vehicle is. Hence, you need to ensure that your vehicle is road-worthy, in and out.

Tip 4. Leveraging the NCD (No Claim Discount)

The driving history involves a huge role in the determination of the amount you have to pay for the car insurance plan. A lot of people who already own insurance coverage are not aware of the NCD, which is generally the reward for maintaining a claim-free record for over a year.

Your NCD gets accumulated after each renewal if you continue to maintain a good driving behavior. If you are smart enough to drive carefully and obtain a certificate for no-claims from your current provider for proving this, then, you may receive a better rate while the renewal of the plan. The best part about the no-claims discount is that you can get it transferred from one provider to another.

Tip 5. Considering the Add-ons Carefully

For every additional cover that you include in your policy, you will usually, have to bear a higher amount of premium. The additional cover options are roadside assistance, off-road coverage, coverage throughout the GCC, agency repairing, personal accident coverage for the driver as well as passengers, rental car, and more.

You must consider every add-on you are going for carefully before you top up your coverage. For instance, if you drive only within the UAE and do not get involved in off-road activities, then you can easily skip off-road cover and GCC.

Tip 6. Increasing the Excess

Your excess or deductible is the amount you have committed to pay in case your insurance has to be paid out. Such situations include repairs, accidents, theft, and more. Usually, the insurer offers you a minimum excess amount that is in relation to your insurance premium, which you will have to pay out of your pocket.

The lower your amount of excess, the higher would be your premium. This is because the insurance provider has essentially committed to making more payment. However, if you wish to increase the excess, you would be able to save more in terms of your premium.

Tip 7. Purchasing Car Insurance Online

You may usually get a discount of around 10 percent on the same policy simply by purchasing it online through a comparison website or even through the website of the insurer. For understanding how your quote is calculated by your insurer, you must know that your premium is generally the same as the value of your car multiplied by the rate.

Hence, it is better that you declare a lower value of your car because the total accidents that lead to loss are comparatively rare. Most of the people don’t realize that in case of regular repairs, the exact declared value of your car doesn’t matter. Then what are the main factors that determine the rate?

Some of the major factors include experience and age of the driver, the age of the vehicle, body type (SUV, coupe, and more), the No-claims discount, make & model, and agency repair. The voluntary excess may also help in bringing down the insurance premium.

Tip 8. Getting the Correct Estimate of the Vehicle’s Value

A lot of us overestimate the car’s value and hence, end up paying off higher premiums than we had to. Based on the wording of the policy, a provider may not have to make payment of the entire declared value (in the event of total loss accident) in case it is over the market average.

For obtaining the correct estimate for your car’s value, you can browse classified websites or ask your dealer for a quote. Most of the vehicles may have to face an annual depreciation of about 15-20% based upon the car model. You must pick a low but correct value for saving money, at the same time making sure that your vehicle is insured.

Tip 9. Reducing the Kilometers

The insurer is likely to charge more in case the vehicle seems to be the one with higher risk. Now, you must be wondering what it actually means? It means that the vehicles with a higher mileage have more chances of breaking down or having an accident because of their high rate of usage.

Hence, if you drive between cities during weekdays, try to avoid using the same vehicle during the weekends, or even better, you can carpool with your colleagues. The basic idea is keeping the car running for as long as you can while also enjoying a lower premium on insurance.

Tip 10. Considering Bulk Purchases

Various insurers offer discounts on getting multiple cars insured with them. If you own more than one car, it is recommended that you take advantage of the opportunity of saving on the premium upfront.

To Sum Up!

Purchasing the best as well as economical vehicle insurance plan can be the best thing you can do for your favorite set of wheels. That said, a lot of people make the mistake of purchasing an insurance policy, which looks like beneficial; however, is not worth buying. If you compare car insurance online, there are chances you will be able to save some money on your insurance in Dubai.

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