With inflation on the rise due to various global influences, we’re all a little more cost-conscious these days and looking for a way to get a better deal for our dirhams. But is that possible with car insurance?
If you own a vehicle, then you’ll already know that the cost of car insurance in Dubai can be high, but there is a way to control car insurance costs if you pay attention to some key influencing factors. This blog shares ten tips that could lower those car insurance quotes.
CAR INSURANCE QUOTES: The Facts
So, what exactly “drives” car insurance costs? How do insurers prepare and calculate car insurance quotes? Well, there are a number of factors that influence the price you’ll pay, and once you know these, it might just help you to get those costs down. Let’s explore them in more detail …….
- Consider your car. Before you buy a vehicle, it’s always worth checking with your insurance broker which insurance group or category the car will be classified under, as this will give an indication of the likely car insurance costs. The higher the car’s value, or the greater its specification, the more it will cost to insure.
- Compare different types of car insurance quotes. When it comes to selecting a policy, you’ve two main types to choose from: third party and comprehensive. Whilst a third party complies with mandatory legal requirements, it offers the lowest level of cover: hence its lower cost compared to its comprehensive counterpart. If you’re on a budget, this might be the policy for you.
- Evaluate your excess. Your excess is the amount you will have to pay for any claim you make under your policy. It is a fixed contribution agreed by you and your insurers and comprises a standard excess (the amount the insurer states in the policy) and a voluntary element, should you choose it. If you elect to take on a voluntary excess, this will be an amount you will pay in addition to the standard excess, and given 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 each claim you make.
- Minimise any modifications. Insurers will always charge more for vehicles that have been modified from the standard specification so any car insurance quotes you obtain will be higher if you’ve modified your vehicle.
- Minimise your mileage. Some policies adjust their premiums based on the utilisation of the vehicle. Put simply, the amount of time the vehicle is being driven or the mileage done. So, if you’re an occasional user, dropping the children to school or doing the grocery shopping only, then this could be a way of keeping your car insurance cost in Dubai down.
- Build up a no claims discount. If you don’t make a claim on your insurance, it’s likely you can expect to receive a no claims discount at renewal. Building up a significant no claims discount can be a real long-term money-saver and you should look to protect it once you’ve built one up. If you have a small bump, it’s probably often cheaper to pay for the repairs yourself, rather than making a claim. No wonder we all get a little obsessed with protecting them. But remember, you always need to notify your insurance provider of any accident, even if it’s minor and you’re covering the cost yourself.
- Avoid getting penalty points or traffic convictions. It’s probably an obvious point, but if you’re someone whose licence has been endorsed with a number of penalty points for traffic misdemeanours, your car insurance costs will be more than a penalty-free driver. Stay the right side of the law to keep your premium under control.
- Don’t leave things to the last minute. It’s always better to allow yourself plenty of time to shop around rather than buy the first policy. The more car insurance quotes you obtain, the greater the comparison you can make of the various car insurance costs in Dubai.
- Don’t get covers you don’t need. Some policies offer additional covers as “added value benefits” and do so free of charge which is good news. But if you’re tempted to buy everything that’s on offer from the array of add-ons when you don’t need them, you’ll pay more than you need to.
- And finally, it’s advisable never to auto renew. Always shop around and give yourself chance to get a range of car insurance quotes to choose from: especially if you’ve got a no claims discount.