Continue reading below to find out more about AXA car insurance renewal and all the key factors related to car insurance renewal in the UAE.
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However, if the insurance premiums are costing you a lot, then we are here suggesting you some tips that you can follow in order to reduce the premium of your car insurance:
One of the easiest ways to reduce your insurance premium is to increase the deductible component in your policy. The deductible is the component of the insurance that you are ready to pay from your own pocket while making a claim. For example, suppose you have opted for a deductible of Dh3, 000 and the bill of your car’s repair comes as Dh5, 000, you have to pay the Dh.3, 000 at the initial level. The insurance company will pay the remaining Dh2, 000. Therefore, it is recommended to choose this option very carefully especially while purchasing online car insurance in Dubai. If you have chosen very high deductibles in order to reduce the premium, then you may end up paying more from your pocket in case of repair.
The ‘No Claim Bonus’ is the advantage that your insurance provider gives you in return for one claim-free year. Adding this ‘No Claim Bonus’ in your current policy for sure reduces the premium for this policy year. Moreover, it also works as a bonus when you purchase a new car after selling your older one that’s insurance has ‘No Claim Bonus’. This is possible when you retain your old car’s insurance in your name after selling it and have asked your insurance provider to give you a certificate for no-claim. In this way, if you purchase a new car even after an interval, then also you have an option to transfer your no claim bonus in your new policy. Generally, you can transfer the ‘No Claim Bonus’ within three years of the sale of your old vehicle. Additionally, if you have not made any claim for 4 to 5 years, then the premium of your new car’s insurance can be reduced up to 50%.
The insurance companies also give you a discount for installing anti-theft devices in your car. These anti-theft devices can be gear lock or steering lock, however, these devices must be taken from the authorized dealers/ manufacturers only.
Just like the purchase of anything, the insurance policies should also be purchased after comparing different plans. However, doing this physically is troublesome, but you can easily compare insurance plans online with the help of insurance web aggregators. An insurance web aggregator asks you a few simple questions related to your expectations from your insurance policy and gives you some of suitable results. You can select one from this result and make an informed decision. Comparing for sure gives you an opportunity to take a car insurance plan with an affordable premium.
These are some really useful tips that work well to reduce the premium of your insurance plan. However, some of the aforementioned points have disadvantages as well such as the inclusion of deductibles in your plan. On the other hand, tips like comparing insurance policies can work as a boon. Therefore, it is always your call, whether you take one tip or all, for reducing the premium of your car insurance policy. But, be very careful while selecting a plan or getting it renewed as one wrong decision can cost you a lot in long run.