7 Reasons Your Car Insurance Premium is Too High
With thousands of options available for insurance providers in the United Arab Emirates, picking the best one suited to your needs may prove to be difficult. However, it is important that your car has the protection as the UAE laws are quite strict and the mandatory third-party coverage does not suffice for the cars. You may feel that you can save up on the premium by buying the basic policy, but the truth of the matter is that you would end up shedding out waddles of money if you do not pay attention. If you feel that the car insurance premium in UAE is too high and you are running out of the budget for maintenance of your car, consider the following reasons which may be the real issues behind making the premiums too expensive:
1. Your Driving Record is Anything but Stellar
Now this particular reason is considered to be the main problem behind the
car insurance premium in UAE being too high. If you do not have a good driving record, then there are all the chances that you may end up with a policy that requires you to pay much higher amounts as compared to a fellow driver who does not have as many traffic violations on his/her name. One of the best solutions for this is to go through any of the corrective courses run by the UAE government that allow people with high black points to clear this record and reduce the number of black points that taint their driving history.
2. Where You Come from is a Decisive Factor Too
The car insurance premium in UAE also depends upon various different factors of your life. Everything right from your age to your gender to your current records play a huge role in deciding the insurance premium that you need to pay. However, there is no hardbound rule that a person of a certain age is liable only to a certain amount of premium but, the insurance providers do take various different parameters in consideration while deciding premium. For example, a young reckless driver who already has minimum black points is not married and is in the early twenties would have to pay a much higher premium as opposed to an experienced driver in his forties.
3. The Selection of Policy and its Type are also Important
This particular reason is obviously the most important reason when it comes to deciding how high the car insurance premium in UAE would be. There are mainly two different types of policies when it comes to an auto insurance policy. One is the third party mandatory cover while the other is the comprehensive policy which has way too many features and benefits and is highly recommended. We are not saying that the money you are paying for your features is all a waste and would not be of any use to you in times of need. However, it is recommended to select a plan as per your requirement.
4. If Your Car is not Deemed to be Safe for Driving
If you are a car enthusiast and have already thought of hundreds of modifications that you want to make to an affordable model because if you had
The money, you yourself would design your car, and then here is some news for you. The car insurance premium in UAEis decided to take in consideration the
safety principles of the vehicles greatly. Also, some cars and some make require a different evaluation. Therefore, the insurers will decide how safe your car is for driving and how much potential damage can it cause.
5. Making Way Too Many Insurance Claims
A lot of people just assume that an insurance policy is like an investment fund from which you can keep withdrawing money as per your own liking and for even the smallest of damages. As an insurance owner, if you want to pay just the right car insurance premium in UAE, then you need to differentiate between irrelevant and relevant expenditures. It is crucial to make a claim only when it is absolutely necessary so that it is a good investment for you instead of being a burden on your finances. This way you will not even lose your no claims bonus. So, the advice is to basically use the insurance only for big amounts when the repairs need a substantial amount as compared to using it for small expenditures every time.
6. Having a Credit History that can be Described as Sub-Par
When it comes to your finances, it is like everything is related to the credit history and credit score that you maintain. However, credit history is at a fairly nascent stage in the United Arab Emirates and is not considered by all insurers. But, it is just a matter of time before it becomes a strict consideration while deciding the insurance premium for the UAE citizens. People with a poor credit score are not considered reliable and research say that the insurers stand at a chance of losing more money while insuring such people. Hence, they like to be safe too and this results into a higher premium. So, even though it is yet another reason to keep your credit in check but even as a practice being financially disciplined is crucial.
7. Settling for the First Choice of Insurance that Comes Your Way
The key to getting the best deals when it comes to your car insurance is obviously doing enough research in the market. There are too many insurance providers offering you the best of deals in the market and it would be unwise to not take a look at all that they have to offer. While it seems like an easy option to just go for the trusted name, but the needs of each customer differs. You need to see which insurance provider is offering you the best price based on the requirements you have.
All of the above-mentioned reasons are the main issues that act as a hindrance in your way of paying low amounts for your insurance policy. Do not ignore these issues and take them into due consideration before settling for your final choice as these small measures are sure to help you save quite a bit of money on the car premium insurance in UAE.