The car insurance premium is based on the make and model of the car, driving conditions, and age of the driver. If the security features of the car are enhanced, the insurance premium will be low. Apart from these, there are various other parameters which influence the insurance premium. The premium collected by one company varies from another company. Hence, you should compare the features and the premium so that you will settle for the cheapest car insurance plan.
Types of Insurance Plans
There are two types of car insurance policies available in the insurance market. You can subscribe to either a third-party car insurance plan or comprehensive car insurance plan as per your needs. A third-party car insurance policy is mandatory to drive on public roads.
Factors Affecting the Car Insurance Policy in UAE
The following factors affect the premium of the car insurance policies in UAE. Consider these factors and take decision accordingly to get cheap car insurance policy in UAE:
The Type of Car:
Before buying the car, you should be aware of the insurance cost of the car. The insurance premium varies as per the make and model of the car. If you buy an expensive or new model with a higher engine capacity, the insurance premium will be high.
Maintenance Cost of the Vehicle:
The vehicle’s maintenance cost also impacts the insurance premium. If the maintenance cost is high, the insurance premium will also be higher.
Availability of the Spare Parts:
The insurance premium also depends on the availability of the spare parts and the price of spare parts. If the price of spare parts is high, the insurance premium will also be higher.
If you maintain a good driving record, it will have a positive impact on your car insurance premium. If you get traffic tickets very often, the insurance premium may increase.
Increase your Deductibles:
If you are willing to pay a higher amount due to car-related accidents, you can reduce the insurance premium. However, you should remember the fact that you have to pay more from your pocket by reducing the premium.
If you had not claimed the policy in the previous policy year, you will get a discount on the premium. The discount is accumulated on annual basis.
You can install anti-theft gadgets so that you can make the most of your investment. If your car comes with inbuilt alarm systems, it will enhance the safety of the vehicle as well as occupants.
Know the Discounts:
You should ask the insurance company about various kinds of discounts. Most of the insurance companies offer a discount based on the location, profession, and other factors.
Insure Multiple Cars:
You can buy an insurance policy to cover two or more cars so that the insurance company will decrease the premium.
Coverage of Personal Belongings:
There are some car insurance policies which cover personal belongings as well. If you are carrying valuable items in your car, you can purchase this cover and it will for sure affect your car insurance’s premium.
Car Replacement Option:
If you drive your car to the work on a daily basis, you should opt for the car replacement rider. By opting for the rider, the insurance company will offer an alternate car until your gets repaired at the authorized service center.
If your car is under the warranty, you should subscribe to the agency cover so that the vehicle will be serviced by the main dealer without any issues. Taking this service as add-on also increases the premium of your insurance.
How to Choose a Cheap Car Insurance Plan?
Choose the Right Plan:
You should choose the right kind of insurance plan as per your requirements. The cheap insurance policy need not be the cheapest policy in terms of price. The insurance plan should come with the best features to protect your interests. You can choose a third-party plan or a comprehensive insurance plan as per your requirements.
Get Quotes from Multiple Insurance Companies:
You should get quotes from multiple insurance companies. You will not want to pay a physical visit to each and every insurance company premises to get an insurance quote. The online quote will help you understand the policy features and you can settle for the best policy.
A Low Premium for an Economy Car:
The insurance premium payable for an economy car is less than a luxury car or SUV. You should choose an affordable car and the best decision should be taken while buying the car.
Figure Out the Discounts:
The insurance company offers various kinds of discounts to fulfill your interests. You will get a maximum discount in the form of NCB (No-Claim Bonus). If you had not claimed the policy for 5 years (or more) you will get highest NCB. By undertaking the defensive driving course, you can get a discount from the insurance company. By adding special security-enhancing devices, the insurance company will provide a discount on the premium. Hence, you should find out about various discounts offered by the insurance company.
Good Driving Performance:
If you maintain good driving performance, you will get incentive from the insurance company. The insurance company will charge a lower premium for good driving conditions.
A car insurance policy should be purchased to cover various kinds of risks on the road. A minimum of a third-party insurance policy is a must so that you will not face legal sanction. To buy cheap car insurance in UAE, you should compare the insurance products offered by various insurance companies. The car insurance comparison websites will help you settle for the best plan.