Are you wondering why you are paying high premiums for your car insurance in UAE? Or are you thinking about the ways to lower down the premiums that you are paying for your car insurance? Well, the reasons for the same may vary from the demography in which you are living to the frequent claims made by you to the insurance policy you choose, but to pay lower premiums for your car insurance, you have to follow certain tips. In this article, we are going to discuss top seven tips that you may follow to pay lower premiums for your car insurance in UAE:
1. Search for Options:
Most of us shop around before purchasing anything and finalize anything after selecting two to three top pieces of that article. The same rule applies for insurance purchasing. Before buying any insurance policy, it is suggested to shop around for various plans. Almost all the top insurance providers of UAE offer online insurance in UAE. Go to the websites of some of your selected insurance providers and find out the car insurance policies of your choice provided by them. Select three to four top policies of different providers and compare their premiums on the basis of the inclusions they are offering you. You can do this comparison by using some reliable insurance web aggregator as well. An insurance web aggregator shows the most suitable result to you by asking a few questions related to your likelihood towards car insurance. So by comparing you can make informed decision in purchasing a car insurance policy online in UAE.
2. Read and Understand the Small Prints on Your Insurance Policy:
The small prints on your insurance policy are generally the hidden terms and conditions of your insurance provider. Therefore, it is most important to read these terms and understand what your insurance policy is giving you for your hard earned money. Some insurance policies automatically include add-ons, which definitely cost more, so it is required to be vigilant and understand for what you are paying in your car insurance plan.
3. Pay for What You Want:
Understand your insurance policy well and know what exact inclusions you want from it. For example, if you have an old car and you are thinking to sell it within a year, then purchasing a third-party insurance cover is more suitable for you than purchasing a comprehensive plan. So, understand your requirements full-well and then purchase a car insurance plan. Doing this for sure will reduce the premium of your insurance policy.
4. Build and Maintain Your ‘No Claim Bonus’:
All the car owners who do not avail the claim in a policy year are usually rewarded by the insurance providers. This award is known as ‘no claim bonus’. So another tip to lower down the premiums of your car insurance policy is to build and maintain the no claim bonus. This, on the other hand, encourages you to drive safely and do not become eligible to make car insurance claim.
5. The Expensive the Car, the Expensive its Insurance Will Be:
Even though every insurance provider treats every car differently, but the ground rule for car insurance is – the expensive the car, the more its insurance premium will be. The reason is, all the body parts of an expensive car are expensive. So, if you have a big car, you have to pay a higher premium for its insurance than for a smaller one. In this way, consider the car insurance cost as well before purchasing your next car.
6. Practice Safe Driving and Parking:
Not only safe driving saves your car from damages, but the parking style also. If you park your car at a place where another car can very easily ding it or the door of another can easily be opened on it, then your car can get dents very easily. However, avoiding such situations while parking the car can save you from car dents and damages and resultantly from making any claims. This improves your car’s no claim bonus and in the end, provides you a good discount on your car insurance premium.
7. A Good Credit History:
In various countries, a good credit history also affects the premiums of insurance policies. The credit score for car insurance is still being born in UAE. It is yet to be seen whether insurance providers will take this into consideration or not. However, if the insurers will start taking the credit history into consideration while giving quotes of the insurance policies, then those who have good credit history will get a good discount on the premiums. In that scenario, you can also lower down the premium of your car insurance by maintaining a good credit history.
By following the above tips, you can for sure lower the premiums of your car insurance policies. One of the most useful tips out of all the mentioned above is comparing different insurance policies online. This can be done when you buy a car insurance plan online in UAE. This is because; you get the option to compare different policies online through an insurance web aggregator only. Moreover, driving safely, parking cautiously, and fully understanding your insurance plan before buying it are some other ground rules to reduce the premium of your car insurance policy.