Are you sure that you are paying the right amount for your car insurance? Many people pay more than what is essential due to various reasons. Most of the times, it is due to lack of knowledge about all the aspects of car insurance. When you are aware of all these factors, you will be able to avoid at least a few of them so that you can get the cheapest car insurance UAE for your vehicle. In this article, we discuss the top reasons why people pay more premium for car insurance in UAE:
Adding Unnecessary Add-On Covers
It is natural for people to get excited about various add-on cover options available in the market. Most of them are also grouped together into a package and you may not be able to distinguish between what is required and what is unnecessary for your situation. Be careful when you are choosing such covers and always ensure that you avoid the covers that are not necessary. Most people do not need a cover like off-road protection as they rarely go out for such activities. Even when they have to go out for such activities, they usually prefer to use the professional grade vehicles that are specifically designed for such activities and not their own cars. In this manner, you can easily avoid such covers and get to save lots of money while buying car insurance.
Not Comparing Insurance Plans
This is the common mistake people make while buying car insurance in UAE. Note that there are different companies offering various plans for your benefit and you should understand them before buying them from the market. You should speak to an insurance advisor and explain your requirements in a detailed manner. Once they understand what you need, they will filter the options and suggest the best deals for your car. If you want to shop on your own, you can visit the online portals that provide these details and from there you can choose the relevant option that gives the best coverage for your car.
Choosing Zero Deductible
To begin with, let us understand what is meant by deductible that is mentioned in the policy document. This is the percentage amount you agree to pay for the claims when your vehicle is damaged in future. It is also known as co-payment and you will have to bear this part of the expenses at a later stage. In simple terms, when you have a zero deductible, you are stating that the insurance company will have to pay for all the damages and you will not share the burden of expenses during a claim. When you have a ten percent deductible, it means that you will share ten percent expenses from your pocket when you are claiming for any damages in future. While choosing zero deductible sounds like a wise move, it is bound to increase the premium by a huge margin as the companies will see more risk in such deals.
Your Car Model is not as Safe as Per Industry Standards
One important thing you need to understand about insurance is that the service providers will always assess the risk involved in covering any vehicle. In this regard, they get reports of safety tests for all the vehicles running in the market. As per industry standards, every vehicle will be given specific rating about its safety after conducting rigorous tests on it under different circumstances. If your car model is not very safe as per this standard rating, you may be charged a higher premium for the car insurance policy.
Your Track Record is not Too Impressive
Most people do not pay enough attention to their driving track record and this can hamper your chances of getting the cheapest car insurance UAE. Remember that every record about traffic violations will be maintained by the authorities and this will be easily tracked through your driving license. When you go for an insurance cover for your car, you will have to submit the copy of your driving license in order to process the transactions. In this way, the track record comes into the picture and when you are not having a good track record, it naturally increases the premium charged for the policy.
Lack of Driving Experience
If you are still new to driving, you will be charged more money to get coverage for your car. On the other hand, when you are choosing a driver for your car, you can choose an experienced driver instead of a fresher as you will get the advantage of low insurance rates in that situation. Apart from that, the age factor of the driver is also considered while offering coverage for the car and you should know about all these factors while buying car insurance.
Your Geographical Location Can Impact the Insurance Premium
Some regions are marked as accident prone zones and this can play a crucial role when you go for car insurance in UAE. If you happen to be from the safe zone as per the records of the transport authorities, you can expect to get the cheapest car insurance UAE for your vehicle. There is nothing much you can do about this factor as your area of residence will be considered while providing coverage for your car.
These are some of the top reasons why people end up paying more premium for their car insurance policy. Read them carefully and clarify any doubts you may have with the insurance service providers. This can help you to avoid certain mistakes and you may be able to save some money on the premium charged for the car insurance policy.