How to Cut the Cost of Your Auto Insurance by Almost Fifty Percent off in Dubai?
Car prices in Dubai are increasing day by day and so are their maintenance charges. Along with this, car insurance premiums are also on the rise across the UAE. The bad news is that car insurance rates are not likely to reduce any time soon. But the good news that there are few things that you can do to cut the cost of car insurance premium by almost half to reduce the burden of your wallet.
Here in this article, we have mentioned a few important yet straightforward methods that will help you to lower your car insurance premium. But before proceeding further, it is important to know what is insurance premium all about and how is it calculated.
What is an Insurance Premium all about?
The specific amount of money that an insured person pays to a car insurance company in order to provide coverage against unforeseen events is what we call an insurance premium.
How are Car Insurance Premiums Calculated?
Car insurance companies basically calculate the insurance premium based on a risk involved with an insurance policy. There are several factors that assess such a risk. For instance, the car insurance premium for a car driven by a young driver that owns a single vehicle will be much higher than that with a driver who has experience and holds several vehicles.
Here are a few other factors that car insurers will consider when deciding the cost of your car insurance premium:
- Insured Declared Value of the vehicle
- Age & gender of the car owner
- Age & type of vehicle
- Geographical zone
- The profession of the car owner
- No Claim Bonus
- Anti-theft device installation
Now, let’s take a look at some of the important steps which can help you cut the cost of your car insurance premium:
Determine Your Car Insurance Coverage
The first and foremost step is to determine the car insurance coverage that you already have. You must have a very clear idea that what you actually want from your car insurance. Then, we would advise you to include only coverage options that you require the most. This can definitely reduce the burden of your wallet.
Shop Around to Get Better Premium Rates
It makes sense to do car insurance comparison by getting quotes from at least 5 to 6 car insurance companies. There is no doubt that car insurance premiums vary from one company to another, so it is very imperative to conduct extensive research about the various car insurance plans offered by different car insurance providers. Just compare the different car insurance quotes in terms of their coverage, benefits, and premiums to make a smart decision. Remember that, the market is very competitive so you must also look at getting car insurance quotes online to do a better car insurance comparison. However, ensure that you avail quotes for similar coverage.
Take a Defensive Driving Course
The best car insurance in Dubai such as Noor Takaful, Watania, and Union Insurance offers a discount for those drivers who complete an approved defensive driving course. But make sure, you directly ask the agent about this discount before you opt for a car insurance policy from a particular insurer whether they provide a discount or not. However, most of the leading car insurance companies offer a discount for drivers who take a safety driving course. This can actually help you to save on your car insurance premium.
Increase Your Deductibles
While opting for the best car insurance in Dubai, make sure you ask for higher deductibles. Deductibles are generally what you pay before your car insurance policy kicks in. By asking for higher deductibles, you can cut the cost of your insurance policy substantially.
Generally speaking, the lower the deductible, higher the annual car insurance premium. Reversely, the higher the deductible, lower the annual car insurance premium. You can also ask your car insurance company that how your car insurance premium might get affected if you increase your deductibles. Well, it may make the annual car insurance premium better by several percentages and ultimately reduces the burden of your wallet.
Maintain a Good Credit Report
Maintaining a good or excellent credit history can actually help in reducing the cost of your car insurance premium. Most of the car insurance companies utilize credit information to set the price of auto insurance policies. That is why it is imperative to maintain a good credit history and rating.
For maintaining a good credit record, you need to pay your credit card bills, loans, EMIs, and other debts at the right time. Mind it, missing even a single payment can affect your credit score negatively. So, be a responsible borrower. In addition to paying your bills on time, it is vital to check your credit balance on a regular basis. And if you have any default & error, just get them corrected quickly so your records remain clear and accurate.
Take benefit of Low Mileage Discount
Few auto insurance companies that offer the best car insurance in Dubai also provide low mileage discount if a car is driven for lower than the average number of miles per year. This discount can also apply to those drivers who car pool to work.
Avail Other Discounts
Some of the best car insurance companies offer amazing discounts to policyholders who have not had any accidents for a number of years. In addition to this, a few car insurance providers also offer a wide range of special discounts during occasions. You can definitely cut the cost of your car insurance premium by seeking out such discounts.
Having the necessary safety features & devices in your vehicle including airbags, anti-lock brakes can significantly help you cut the auto insurance premium for your vehicle. This is because having all the required safety devices & features in your car reduce the chances of an unforeseen event such as accidents.
The price of car insurance premium is likely to continue to rise in the future. But thankfully, you can reduce the cost of your car insurance premium by half by following these aforementioned steps. Also, make sure you do a car insurance comparison online in order to find the best car insurance in Dubai.