In the UAE, holding a car insurance policy is a legal requirement and, on average, car owners in Dubai spend 1.25% to 3% of their car’s value a year on their insurance premium. But this doesn’t mean that you can’t save more on your insurance plan!
With the right tips, you can not only save on your insurance rates and access discounts – but also get better value for money and a more personalized coverage policy!
Here’s all you need to know.
If you live or work in the supercar capital of the world, you might not think twice about investing in a luxury car. However, if you are looking to save on your insurance premium, it’s worth noting that the type of vehicle you drive is one of the key factors that affect car insurance rates.
Insurers will account for your car’s value, model, and age when calculating your insurance premium – no wonder luxury car owners pay $40,000 or more a year to insure their supercars!
Deductible amounts – also known as “excess” – are the out-of-pocket expense you’ll have to afford when a submitted insurance claim is accepted. Higher deductibles mean that the insurance won’t have to pay as much when making a pay-out, thus limiting their risk.
While higher deductibles can help you save money on a monthly or yearly basis, make sure that you can afford higher out-of-pocket expenses should an accident happen.
Thanks to the road safety initiatives and traffic safety strategies introduced by the UAE government, Dubai’s number of car accidents and road fatalities has been consistently declining since 2016. But being more careful on the road isn’t just beneficial to other road users but also to yourself!
If you have not filed a claim for a year or longer, you might be eligible for a No-Claim Discount (NCD) on your premium. This bonus is based on the number of years without a claim and can help you save up to 20% on your insurance cost.
While comprehensive insurance is the most popular type of policy, there is more than one option to choose from.
For example, if your car is older than five or six years, or it has depreciated in value, you might consider dropping collision and comprehensive insurance and save on your premium. Even in this case, you’ll still want to invest in high-quality third-party insurance – which is a legal requirement in most countries!
Ultimately, you should compare car insurance in Dubai before deciding on the right plan for your circumstances. You’ll need to find a balance between investing in a reliable safety net and cutting out expenses that don’t provide value.
While it is recommendable to work with the same insurer and establish a relationship of trust, you should always review your policy before renewing it.
Firstly, your needs as a driver might change over time and you might require more or less coverage. In this case, adjusting your policy can be done more easily upon renewal.
Additionally, while insurers must inform policyholders of changes in their agreement, reviewing your car insurance plan is a great way to know what to expect in the event of an accident.
While the first quote you receive might seem a convenient one, it’s important to keep in mind that the insurance market is more complex and competitive than ever.
By shopping around and comparing providers, you’ll be able to find different insurance rates, plans, and types of coverage that might better suit your needs. Start by getting instant quotes from online providers!
