If you are an expat living in Dubai, owning your dream car can be a possibility here as you can find plenty of luxury cars in the rich emirate. It is common for expats to buy cars here in Dubai that they never even thought of buying in their home countries.
If you have just started living in Dubai and looking to buy a luxury car after finding that almost everyone owns a luxury car here, you also have to think about the cost of insurance as car insurance is mandatory in Dubai. Any car that costs more than Dh 300,000 is treated as a luxury car by insurance providers.
While you pay for your car one time, insurance is a recurring cost that you have to pay every year so it is really important to calculate the cost of premium you have to pay every year. Here are few things to consider before taking a final decision about your car’s insurance plan.
Finding the Best Insurance Provider
With many insurance providers offering a range of different insurance plans for luxury cars, how do you distinguish between a good and a bad one? First of all, check if the insurance provider is rated by the international credit rating agencies. The companies that are rated positively are known for settling even large claims which is often the case when you own a luxury car.
Here are some additional tips if you own a luxury car.
- It is recommended to buy a used car instead of a new car as the cost of the insurance premium is much cheaper for used cars than the new ones. The cars that are 2 to 3 years old are best option as they not only help you save on your premium cost but also include a warranty.
- If you are looking to save more on premium cost, make sure to avoid sports car as they cost 40% more on average for insurance premium if compared to other luxury cars like a sedan.
- While choosing an insurance plan, make sure the package include agency repair even if it costs slightly higher. As luxury cars include much more options and modern technology than normal cars, repairs by someone not qualified for these cars can actually do more long-term damage. These cars require an expert care that is possible only through repairs from authorized dealer agencies.
Simply put, if you follow these tips, you can not only save cost of the insurance premium for your luxury car but can also get the best value for your money.