10 Ways of Reducing Car Insurance Cost
Reducing Car Insurance costs in a time of dearness and budgeting can be a blessing in disguise.
Car Insurance Policies have been adopted and formulated as obligatory reasonability of the people of the UAE to get insured cars as soon as possible in order to become roadworthy drivers and not become a liability in times of unfortunate situations.
Many insurance providers have started introducing schemes and discount packages to attract the target audience.
But the reality check is more transparent in the time of monthly car premium.
As many of us have experienced, we see a sudden rise in our premium after a few months. The insurance representative blames this rise on economic inflation or insurance law in the inquiry.
These uncontrollable factors are not in our hands, but some control segments are dependent on us.
Therefore, we have identified such control factors that can help you reduce your car insurance cost.
Best Ways to reduce your car insurance cost
1. Be Smart in Car Shopping:
Becoming a car owner always gives you a sense of achievement, but it can be forgotten early when you have to get that car insured with a heavy premium.
The car model, its specification, and its condition matter the most when setting your premium.
If you are the car owner of a brand-new BMW or sports car, start expecting a high auto premium. In contrast, you have to pay a low premium for standard vehicles.
The reason behind such a clause is that these expensive cars require a lot of care; even a signal scratch or dent can cause a hefty amount of repair and maintenance.
Similarly, there is always a risk involved in a serious accident from such vehicles and high claim rates.
Therefore, if you’re getting an expensive car, ensure you have comprehensive insurance and some add-ons to be saved from costly damages.
2. Safeguard your car:
Leaving your car in open space overnight or Insafe parking, you ask for trouble and give an open invitation to thieves and vandals.
The insurance providers accommodate you in the auto premium when they are satisfied that your car is safe in a garage or has a security system plugin in the vehicle.
3. Save Your Kilometers:
Driving fast does give you thrills, but your safety is compromised and labeled you a high-risk vehicle owner. Then many insurance companies charge you high premium rates due to the high kilometer and mileage rate your car has.
For affordable auto insurance, all you have to do is control your speed limit and try carpooling or taking a taxi to save mileage in time of getting new insurance policies. The idea is to make your car a less-risk vehicle in front of the provider.
4. Get Rental Car:
The ideal choice for your long stays (ex-pats) and a long drive is a long-term car rental where you can rent the car for several days.
Under many insurance options, you can now avail of the best options to determine if you already have coverage within your auto insurance policy.
- If you are staying for months or a year then get a long-term car rental with insurance. As it makes more sense than normal weekly/monthly car rental insurance
- If you are an immigrant or expat then you don’t have to buy a car in a country where you are for a few months/years. Therefore, you can save your car from extra mileage and kilometer.
- Car hire also means that now only the insurer will be responsible for covering the expense of renting a car.
5. Black Box Policy:
The telematic or pay how much you drive policies are getting popular in the automobile industry of the UAE.
You can save a significant amount from this policy, where you get an option to attach a deceive in your vehicle that will record the number of kilometers and mileage. You can also download its app on your smartphone and get information on how much you have driven in a month.
Along with this feature, it also acts as a tracker in times of car theft. With this device, we can easily deduce its location.
Therefore, the provider observes your driving track in this device and adjusts your premium according to the car and driver’s performance.
6. No-Claim Discounts:
Most of us are still not aware of no-claims discounts.
Sometimes it is missed by our lack of understanding, and insurance representatives are not entertaining your concerns properly. But no worries, now take advantage of NCD.
No-claim discounts are the reward for being claim-free for a year or more. It features;
- After every renewal of your auto protection policies, NCD is accumulated, in case of your good driving code of conduct.
- You can transfer No-claims discounts from one insurer to another.
7. Considered the Excess:
The insurance companies set a premium price of any car on the possibility of the claim they might have to pay at particular incidents.
Getting higher excess for yourself aids you in reducing your car premium by allowing the provider to contribute less and are already paying from your pocket.
This suits individuals who have a brand-new car or a frequent traffic violators.
Therefore, evaluate this excess that you can pay easily. If you are not making claims, then this doesn’t suit you.
8. Tagging an experience Driver Name:
When your insurance provider considers your risk, you pass the driving test under 25 or previously had a claim issue. You can add some other experience driver’s name to your insurance policy in such cases.
This will reduce your insurance premium and get an insured car without any rejection.
Therefore, you named that person only who is indeed driving your car sometimes. Otherwise, it will be termed a fraud.
9. Pay Insurance Fee Upfront:
Many clients are hesitant to pay their insurance policy fees upfront as it significantly shakes their bank balance.
But it’s better for one time as you can save a lot of amount over the year. By paying for your car insurance in monthly installments, you are essentially taking out a loan with added interest rates from the insurer. If you can afford to pay the annual cost upfront, you could save 20% or even more, depending on your provider.
10. Wisely Compare Quotes:
In online business now, you can easily avail and compare quotes online through reliable sources and websites.
Many insurance providers have started offering flexible rates and reasonable packages to gain customer loyalty and long-term relations they offer:
- Fast application and claims process
- Maximum compensation or coverage over theft, vandalism, accidental damages and etc.
- Third-party liability against property damage and personal
- Maintenance and repair service from their connected agencies
- Driver and passenger coverages
- Roadside recoveries and concierge assistance.
- They also offer you non-complicated and stress-free commutes with a discount rate car replacement alternative.
Therefore, get the best car quotes and decide which provider and policy suit your car needs.
Your timely decision, evaluation, and research on car insurance concerns can help you have a cheap insurance policy.
The main purpose of this post is to open a room of possibilities for you when you buy a car insurance policy and don’t get stuck with rigid providers.
Therefore take advantage of these controlled factors that can be beneficial for your pocket and for your car.
Reducing Car Insurance Cost FAQ’s
Is full coverage insurance worth it?
It has its own pros and cons. You may have to pay more than what damage you are causing, but you would not have to pay in case your
What is the complete tenure of car insurance in the UAE?
The average duration of car insurance in the UAE is 13 months. You can renew your insurance once it expires and continue as long as you want to.
Does your car insurance go down after your car is paid off?
No! Whether your car is financed or not has no role in your car insurance.
Originally published Nov 05, 2020 15:54:00 PM, updated Sep 14, 2022