New car insurance in UAE pays you more for driving less

By PolicyBazaar
  | Published: 25 December 2020 | Last Updated On: 05 February 2021

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Car insurance is extremely important for driving in the UAE. It protects you as well as your loved ones from any mishappening caused either due to your own callousness or someone else’s. It also protects your car and saves you from having to spend on its repair in case of an accident. 

Additional covers like theft and fire cover or a replacement vehicle cover offer even greater coverage to your car, ensuring that your hard-earned money does not go to waste. Hence car insurance in UAE is not something to be taken lightly. 

However, what if we were to tell you that you could not only save but also earn by choosing to have car insurance in UAE? Intrigued yet? 

There is a game-changer in the insurance market these days. It is called mileage-linked car insurance in UAE. Beema is the first car insurance provider to bring this revolutionary product into the market of UAE. Let us take a dive into what this unique product is all about. 

What is Beema’s radical insurance product?

Beema has recently come up with pay-per kilometre insurance. This car insurance in UAE is the newest kid on the block. It provides mileage -linked discounts as cashback to its customers that goes directly into the bank accounts. This scheme is a part of the comprehensive insurance plans underwritten by the insurance giant AXA. The maximum cashback rebate offered by Beema is 25 percent on offer and as a result this car insurance promises a ton of savings for the car owners in the United Arab Emirates. To explain it in simple words, the less you drive your car, the more money you save!  

The savings under this car insurance in UAE can be enough to get a quarter of your annual premiums back into your bank account. Beema’s tagline, “Save on insurance while your car is on standby,” explains its product quite effortlessly. Conventional car insurance in UAE continues to charge you even if you are not using your car a lot, or not using it at all. That is not the case with Beeema. This new-age online insurance provider that was created through the ENOC Next accelerator program in association with AXA, provides 25 percent cashback to UAE policy holders who limit their car miles by driving less. 

Is this new car insurance in UAE truly revolutionary?

Beema is certainly the first insurance provider to bring this innovative mileage-based car insurance policy to UAE. However, this concept is not brand new. Similar insurance plans have been popular in several developed countries like the United States of America And the United Kingdom for the past decade. 

The US based insurance provider MetroMile was the first pay-per-mile car insurance provider. Following suite, many different companies have tried to emulate this model namely, Esurance, Progressive, Allstate, Mile Auto and Nationwide in the US. ByMiles was the first to introduce this concept in the UK. 

How does it work?

This online car insurance in UAE offers a percentage of the premium paid once the year ends to those who drive a maximum of 20,000 kilometres. Let us try to understand this with an example, customers get 25 percent cash back on driving 4,000 kilometres. Those individuals who drive 8,000 kilometres will get around 9 percent cashback while 7 percent cashback will be given to those who drive 16,000 kilometres. 

Companies in the United States of America evaluate how risky the driver is on the basis not just mileage. International markets that offer the pay-per-mile type of car insurance use various other parameters like telematics and vehicle diagnostics to observe how one drives as well as track mileage. This information guides the insurers on other data like the way you accelerate, how frequently you hand-brake, how often you turn a hard corner among others. New technological innovations make these evaluation procedures possible. 

However, Beema currently uses readings of the odometer to keep track of the number of kilometres travelled by car during the active period of the policy. The readings are taken once at beginning of the plan and once the tenure ends. The policy holder gets the alternative to upload a Tasjeel certification to verify their readings or a Beema officer can come to take a record of the reading physically. 

What to expect after a year?

The pay-per-kilometre scheme gives 25 percent cash back to its policyholders. But only those individuals who drive only 4,000 kilometres will be eligible for the 25 percent cashback as stated earlier. This cashback amount decreases as your drive more and you will be denied cashback completely if you drive more than 20,000 kilometres. 

The discount of this car insurance in UAE is calculated at the end of the policy tenure and the cashback is sent directly into your bank account. Apart from this, any claims submitted during the course of your policy will not have any impact on your cashback amount. But an important thing to remember is that your cashback will be refuted in case the car is declared to be a total loss in the middle of the policy tenure. 

The benefits of this new car insurance in UAE:

This car insurance in UAE is not only unique but also comes with many different benefits apart from its highly advertised cashbacks. Here are some advantages one can expect upon booking this insurance plan:

  • No more standing in queue with this fully online insurance plan that can be booked in just 5 minutes
  • It can be bought for as little as AED 1365 per year
  • You can send your mileage details over a SMS
  • There are no daily or monthly limits
  • Earn 25 percent of your premium as cashback straight into your bank account
  • This comprehensive car insurance in UAE encompasses a breakdown cover, 24- hour accident cover, personal injury cover, hire car benefit as well as the Oman cover
  • This pay-per-kilometre car insurance is best for those who own more than one car and those who have low mileage 

In a Nutshell

This unprecedented car insurance plan was introduced keeping the diverse driving needs of UAE’s car owners in mind. It offers both value as well as convenience to its policyholders. So, choose a plan after understanding its terms and conditions that come with all insurance policies. Compare all your options to get the policy that offers maximum benefits to you.