Top ten tips to reduce the cost of car insurance in Dubai
With inflation on the rise due to various global influences, we are all a bit more cost conscious these days and looking for a way to get a better deal for our dirhams. But is it possible with car insurance?
If you own a vehicle, then you already know that the cost of car insurance in Dubai can be high, but there is a way to control the cost of car insurance if you pay attention to some key influencing factors. This blog shares ten tips that could lower your car insurance rates.
CAR INSURANCE PRICES: The facts
So, what exactly "drives" car insurance costs? How do insurance companies prepare and calculate car insurance offers? There are many factors that affect the price you pay, and knowing them can help you reduce those costs. Let's explore them in more detail......
- Consider your car. Before you buy a vehicle, it's always worth checking with your insurance broker what insurance group or category the car will be placed under, as this will give an indication of the likely cost of car insurance. The higher the value of the car or the higher its specification, the more it will cost to insure.
- Compare different types of car insurance. When it comes to choosing a policy, you have two main types to choose from: third party and comprehensive. Even if the third party meets the mandatory legal requirements, it offers the lowest level of cover: i.e. its lower cost compared to its comprehensive counterpart. If you're on a budget, this might be the policy for you.
- Evaluate your surplus. Your deductible is the amount you will have to pay for any claim you make under your policy. This is a fixed contribution agreed between you and your insurers and includes a standard excess (the amount the insurer states in the policy) and a voluntary element if you choose it. If you choose to take a voluntary deductible, this will be an amount you pay on top of your standard deductible, and because your contribution will be higher, your insurer will give you a premium reduction in recognition. Always consider what you can reasonably afford, as once agreed you will be liable to pay this amount for every claim you make.
- Minimize any editing. Insurers will always charge more for vehicles that have been modified over standard specification, so any car insurance quotes you get will be higher if you have modified your vehicle.
- Minimize the number of kilometers driven. Some policies adjust their premiums based on vehicle usage. In simple terms, the time the vehicle is driven or the number of kilometers driven. So, if you are a casual user, taking the kids to school or just grocery shopping, then this could be a way to reduce the cost of your car insurance in Dubai.
- Build your no-claims discount. If you don't make a claim on your insurance, you can probably expect to receive a no-claims discount when you renew. Building up a significant no-claims discount can be a real long-term money saver and you should aim to protect it once you've built it up. If you have a small bump, it is probably often cheaper to pay for the repairs yourself than to make a claim. It's no wonder we're all a little obsessed with protecting them. However, remember that you must always notify your insurance provider of any accident, even if it is minor and you pay the cost yourself.
- Avoid getting penalty points or traffic convictions. It's probably an obvious point, but if you're someone whose license has been backed up with a number of penalty points for traffic offences, your car insurance costs will be more than just a driver with no convictions. Stay on the right side of the law to keep your premiums under control.
- Don't leave things to the last minute. It is always better to allow enough time to shop than to buy your first policy. The more car insurance quotes you get, the better you can compare different car insurance costs in Dubai.
- Don't buy covers you don't need. Some policies offer additional coverage as "value-added benefits" and do so for free, which is good news. But if you're tempted to buy everything on offer from a range of extras when you don't need them, you'll be paying more than you have to.
And finally, it is advisable to never renew automatically. Always shop around and give yourself a chance to get a range of car insurance quotes to choose from: especially if you have a no claims discount.
