Buying a new car is nothing short of an incredible achievement and a milestone in everybody’s life. But your liabilities do not end at just buying an asset like a car – securing proper protection for it goes hand-in-hand with buying it. Not to mention it can be hard to take a big financial setback when you have just spent a significant sum on buying it. This is why car insurance is important. It ensures that you are financially backed up in case damage occurs.
While a worthwhile investment, car insurance premiums need to be paid out of your pocket. A comprehensive car insurance plan comes at a significant cost too. This calls for a few tips and tricks to cut back costs a little from each angle so that plan falls right in your budget. Several small factors influence the cost of a car insurance plan and keeping a stronghold on these factors can bring down the cost substantially. Let us examine some of the top ways you can cut back on car insurance expenses and still have a proper plan for your beloved car:
The concept of bulk shopping is applicable in almost all aspects of the world. You buy two, three or more, you get a hefty discount. The same is the case with car insurance plans. Most car insurance providers would offer you a higher car insurance quote if you apply for single vehicle insurance. If you have two or more cars, try applying for insurance for all of them at the same time. The catch here is simple, the more business you bring for the insurance company, the more discount you will be offered. Some insurance providers also offer bulk discounts to vehicles registered under different drivers as well. The general rule applied in most places is that all the concerned drivers should live with the same residents and related by blood though. Check with your insurance provider for their policies on bulk discounts and score a lower quote in the process.
If you have not heard of it yet, the safe-driver discount is a huge deal in car insurance and it is indeed offered to people. The better your track record as a driver is, the more chances there are for you to score this discount. This is why being a little mindful on the road can pay off well as far as car insurance discounts are concerned. This discount works as per the points you have accumulated on your license. UAE has a system of black points for road and traffic rules violations. Every kind of moving violation has a certain number of points assigned to it. The lesser points you will have on your license, the more discount you can get for your car insurance.
Courses like accident prevention courses are known as defensive driving courses. If you have taken one of these courses and completed the training, you can look forward to receiving a hefty discount on your car insurance premium. Several car insurance companies encourage the drivers and policyholders to take these courses and learn defensive driving to lower the chances of accidents and hence lower the risk for them. Lower risk for insurance companies simply means lower premium rates for you.
There is a well enough chance that you will miss out on plans that are good if you do not compare. Upon comparing, you find that several insurance providers are offering comprehensive benefits at a much lower price than the insurance company you have chosen at first. This is why always compare your options. From the initial quote of the plans to the actual benefits, any possible add-ons, benefits like off-road covers, etc. Compare different providers but do not forget to compare different plans from one provider as well.
It may not be something that can be classified as common knowledge but, car insurance plan rates are highly influenced by the mileage of the vehicle and how much you drive it. For example, someone who drives their car to work every day for a few hours would have a higher premium than someone who would drive theirs only for an hour or so. The lesser you stretch the miles, the more discount you can score on the premium amount. This calls for a check-in with the insurance company for their mileage policy. Every insurance provider has a different threshold for mileage. Make sure you are clear with the terms before you start racking up the miles on your new car.
If you are confident with the usage limit and your driving style, you can also opt for the pay-as-you-go option. This option lets the insurance company track your car miles and usage in real-time to specify how much and in what way you use the car. As long the record shows that you are driving within the mileage threshold and with care, you will keep incurring discounts. Find out if your insurance provider offers this benefit and take it if you feel like it.
When you go car insurance shopping, you will notice that the bigger and more expensive car you want to get insured, the higher the price of the insurance plan would be. This is a legitimate activity on the part of the insurance company. More expensive, luxury cars hold higher value and paying for their repairs is equally expensive in the event of an accident or collision. If it is feasible, consider buying a lower-cost car with preferably alternate fuel options. Insurance companies now offer discounts on environment safe features of the cars as well. Buying a smaller car that still satisfies your need despite being cheaper than an SUV can help a lot in saving car insurance costs.
Deductible or excess is the amount that the insurance holders have to pay themselves when a claim comes into the picture. The deductible amount is pre-decided for each plan and can be in a lump sum form or percentage form. For example, let’s say your car got into an accident and the repair would cost AED 1000. The deductible amount in your plan is set at 10% which adds up to AED 500 in this case. Here, the insurance company will only be liable to pay AED 4500 (total claim amount – deductible amount).
This simply means that the more deductible a policyholder is paying, the lesser is the risk for the insurance company. This is why, if you opt for a larger deductible amount, you can get excellent discounts on your insurance premiums. Most insurance companies let the policyholders decide the deductible amount themselves voluntarily. Calculate what you can afford to cover if a situation like that arises and choose the highest amount of deductible you can afford to take.
Most people think that it is only their driving history that affects the car insurance premium amount for their vehicle. The truth is that most insurance companies also consider your credit history and cr4edit score when offering a final quote or discounts. A good credit score would mean that the concerned person is trustworthy and responsible in their personal and general affairs. How you handle your finances tells a lot about you as a person which is what insurance companies are looking for. At end of the day, they are a business entity and would like to be associated with responsible personnel, first and foremost.
The same insurance plan can different premium amounts in different cities and emirates. The plan that is costing you significantly less in Dubai may cost you a lot more in Abu Dhabi. Now, it is understandable that people do not just move from one emirate to another in a matter of minutes. But if you have a potential probability of moving to another city or emirate, do a close inspection on car insurance plan costs and find a suitable variant for yourself.
When your car is new, it makes sense to take on a bunch of add-ons for off-road cover, engine cover, etc. along with a rather comprehensive plan. A new car requires a close inspection and having a proper comprehensive insurance plan can indeed save you a lot of money on repairs and such if a situation comes forth. But, when your car is old and has been driven for a few years, continuing the same comprehensive plan does not seem like a smart choice. Choose to re-evaluate your car insurance policies every few years to meet the current demands and requirements of your vehicle. You may be spending a lot of money in vain on services that are no longer required for your car.
You must have read that modified cars can not get car insurance easily. But a few small modifications can not only get you a great plan but also help you score a good discount. Installing an anti-theft device is one of these modifications. Having an anti-theft device in your car would mean lesser risk for the insurance company since they do not have to worry about the theft cover in a comprehensive plan. Such practical modifications can save you a significant amount of money in the long run.
You may have spent hours trying to find the perfect car insurance plan for your car with as much discount as you could find but you still may miss something. There are several ongoing things in the current market trends that the general public do not get to find such as special discounts with a few terms and conditions. Financial experts can help you score these special discounts along with the ones that you find. You can choose to go to insurance brokers or agents to know more about such deals. Or you can try to get in touch with one of the experts from PolicyBazaar UAE if you would like to cut the mediator or agent commission as well.
Your work does not end after buying the insurance plan once. Almost every insurance company keep introducing discounts and benefits constantly. So, make sure that you conduct thorough research once again when renewing your car insurance plan every time. The most probable discount that you can score almost any time is the online shopping discount. Many insurance providers are encouraging digital shopping now and offering great discounts on these purchases as well.
Buying a car insurance plan for your new car can be an overwhelming process. On one hand, you want to save money but on the other, you want to buy every possible protective cover for your new car. The key here is to determine the most essential things that your car could need and buy those covers only. For example, there is no point in investing in an off-road cover if you live in an urban area and never go driving in the dunes or the countryside requiring off-road protection. Only get the essential covers in your car insurance and dump the others.
The more you spend with a policy without any claims, the more discount you can get every passing year – the infamous No Claim Bonus. When you complete a term of the car insurance policy without making any claims, you get to have the no claim bonus discount. This discount increases every year and can get you up to 50% off on your premiums. So, if an expense has risen that you can afford to take care of by yourself, avoid submitting a claim for it. The money you will save with the NCB will be enough to cover these costs and more. Note that most insurance companies exempt third party liability claims from the NCB window which means you can still get the discount if you submit a third-party liability claim. But confirm it with your provider first.
The more you read about the process and experience it, the better acquainted you will get with these small tips and tricks to save big sums of money. All you need to do is stay up-to-date with the upcoming deals and discounts from the insurance companies and drive responsibly in the meantime. By following these few simple and basic things, you can easily save a significant amount of money on your car insurance premium and still have optimum coverage for your beloved car, for as long as you have it.