How to Save on Car Insurance Premium at the Time of Renewal?01 Sep, 2022
Here are some ways in which you can bring down your car insurance premium not only by customising your cover but also by being aware of several other factors. Click here to read more!
Car Insurance in UAE
Car Insurance in UAE is not just a legal requirement; it protects you from damages and theft and helps avert major financial losses. Legally, it is mandatory to have a Third Party Liability insurance that covers third party claims. However, it is advisable to get a Comprehensive policy since it covers damages to your vehicle in addition to third party claims in the event of an accident, comprehensive car insurance in UAE also covers theft, damages by natural disasters etc. It is important to choose the right car insurance policy that includes the coverage you require and that also comes with a reasonable premium.
The rise in car prices has impacted the cost of car insurance as well. Rising cost of premiums shouldn’t make you compromise on your insurance policy and car safety. This article enlists some of the tips you can use to save on car insurance premiums while you renew your car insurance plan.
Quick Read Section:
- Skyrocketing car prices have led to an increase in car insurance premiums
- 6 Tips for saving on premium at the time of your car insurance renewal
- Compare insurance providers and policies
- Review your plan coverage and add-ons
- Apply for a no-claim bonus
- Increase your deductibles
- Renew your policy on time
- Avoid car modifications
Factors affecting your car insurance premium
The cost of your premium is determined by the following factors:
- Make, model and value of the vehicle
- Driver’s age
- Total driving experience (in years)
- Traffic violations record
- Claim history
Saving at the time of renewal
Here are six tips that can help you save on your car insurance premium at the time of renewal:
Find the right insurance broker to compare plans
Reach out to an insurance broker, that will help you compare the quotes offered by different providers and assess their benefits as per your requirements. The premium should be reasonable enough when compared to the benefits of the plan. Choosing the right insurance broker is an extremely important step since they will help you find the best cover as per your needs and ease the process of choosing a policy, you can reach out to our team of car insurance experts to compare different plans. Prepare any questions you have and make an informed decision.
Review your plan coverage and add-ons
Your car insurance plan comes with a set of predefined benefits. Assess the features of your previous plan and analyse the ones that were most useful. If your policy allows it, opt out of the features you don’t require. Every plan offers a list of add-ons. These strengthen your insurance coverage, but they also drive the cost of the premium. Choose only the add-ons relevant to your situation and it will help considerably lower your insurance premium.
Apply for a No-Claim Bonus (NCB)
The No-Claim Bonus (NCB) or Discount refers to the discount offered by the insurer on your premium if you have not made any claims in the past year of your policy. You are entitled to higher discounts if you have a record of claim-free years. This discount can be used at the time of renewal or while purchasing a new policy. If eligible for the NCB, you should apply for it in the policy maturation period. This will have a significant impact on your car insurance premium.
Increase your deductibles
A deductible is the amount you pay out of pocket in the event of a claim. This amount is a set percentage agreed beforehand that is paid when you make a claim. Having zero deductibles entitles you to the complete claimed amount, but that plan would have a higher premium. If you hold a consistent record, then you can look into raising your deductible to a realistic and affordable percentage. Increasing the deductible can considerably lower your premium amount and help save on your car insurance.
Avoid car modifications
Car modifications like ultrasonic sensors, night vision, alloy wheels etc. may seem appealing but they can lead to a higher premium on your car insurance. Cars with gadgets and modifications are placed in the high-risk category which subsequently drives the cost of the premium. Avoid any major car modifications in order to get suitable rates.
Renew your policy on time
Car Insurance in the UAE is generally valid for 13 months. The standard policy term is 12 months, but in addition to that there is a grace period of 1 month. It is important to complete all renewal procedures in this time to prevent your policy from lapsing. After policy expiry, you will not be able use your No Claim Bonus; don’t forget to secure it during this time. Use the grace period wisely to research and compare plans and decide if you want to continue with your current insurance provider.
Choosing a car insurance policy may seem like a daunting process but it has been simplified with the plethora of resources available online, you can also directly get in touch with our team of car insurance experts to evaluate different quotes for your car insurance. Ensure you make the effort to choose the right insurance broker who will help you assess options thoroughly to get the best plan with a reasonable premium. Follow the above tips in order to maximize your savings.