Must Read: Ways To Save Money On Car Insurance
Insurance is not always exciting and to be honest; most people think it’s complicated because that is about the only thing that you purchase and hope never to use. In that regard, insurance is often purchased as a commodity, the price being the eventual determining factor in the decision. Genuinely speaking, most people do not want to pay for insurance; hence, they are continually looking for ways to save money on car insurance.
While it can be tempting to cut down your rates by choosing subsequently low premiums that do not really suit your driver profile or skipping the purchasing part altogether, there are still a host of ways that can help you save money without putting yourself in jeopardy. Let’s take a look:
- Good Driving
Believe it or not, good driving is key to saving money when it comes to car insurance. Though it’s futile to say that speeding and running a red light occasionally won’t happen at all, you can save by stumbling across as a conscientious driver. If you consider yourself a good and safe driver and haven’t been in many accidents, there are ways to get discounts on your auto insurance.
For instance, if you don’t commit traffic violations or cause any accidents, your insurance company will almost always reduce your rates. The discounts offered by insurers differ, but many can be as high as 20%.
- Scale Down Your Kilometers
Driving less might also help you get a low mileage discount. Insurance providers are likely to charge more if the car is seen to be a ‘higher risk’ vehicle. Higher risk vehicles are vehicles with higher mileage.
These vehicles are seen to be more likely to break down or have an accident due to their high usage rate. So, if you are driving between cities during weekdays, avoid using the same car over the weekends. The idea is to keep your vehicle running for as long as possible while enjoying low premiums hence saving money.
- Do Your Research
It is never the right decision to buy the first policy you look at. Whether it’s your first car or you’ re changing insurers, always do your research. Insurers still consider the driver’s history so scouting will help you determine which insurer fits your driver profile and this will save you a lot.
There are several car insurance products available in the UAE. It is recommended to compare the different policies according to your preferences like budget, features provided, add-ons required, etc. Analyzing different policies will help you determine exactly what fits your driver profile perfectly, thereby saving you a lot of money.
- Get Your Car In Shape
Cars with up-to-date safety features cost less to insure for one simple reason, “You are less likely to be in an accident that requires a claim.” Insurance providers will always look at the vehicle they are insuring. This is standard procedure, for when they need to pay out.
They save money too. Consider adding safety features to your car. Insurers also want to make sure your vehicle is roadworthy from inside out. They assess the state of the vehicle they are insuring, and any damaging features may not work in your favor.
- Choose Add-ons Wisely
Getting add-ons is a good idea; however, some of these several additional benefits provided on car insurance may not be useful for you. Most of the insurers offer these add-ons for extra charges. These benefits which are not helpful for you can be a waste of money. You can check the add-ons provided and opt only for the ones that are useful for you hence saving money.
The majority of the people who are insured are not aware of the no claim discount, which is mostly a reward for being claim free for one year or more. This no claim discount accumulates after every renewal of your policy if you are maintaining your good driving behavior.
Insurers usually provide up to 20% discount on premium rates if the insurance holder has not made any claims for 2-3 years. Saving money car insurance premium is as easy as enquiring about what you are eligible for, given your history as a driver. The best part is that no claims discounts are transferrable from one insurer to another.
Originally published Jun 25, 2020 13:08:00 PM, updated May 05, 2021