Having insurance for your car in Dubai is mandatory and unfortunately, itis quite expensive unless you know how to manage to lower the quote. Some practical tips:
Shop for the Lowest Rate
It is easy to assume that car insurance is a commodity and the price charged by different insurance companies would not vary widely. However, the reality is quite different because each company has its own way of evaluating the risk posed by a potential customer. Even though the number of insurance companies in Dubai is limited, it can help to approach all for quotes; the difference between the highest and the lowest can be surprising.How to Minimize the Insurance Premium of Your Car in Dubai.
Purchase a Model Classified In the Lower Tiers
If you do not want a car that is very high on either the luxury or the performance aspects and are prepared for something that is utilitarian you can opt for a car model that is not very expensive and hence classified in a lower tier. Usually,car insurance UAE companies have 20 such classifications and the higher the group ranking, higher the insurance premium charged.
Buy Only Third-Party Insurance
It is mandatory for car owners to have third-party insurance. This is a type of insurance that will cover any damage caused by you to third parties but will not pay for any damage that is suffered on your own vehicle. It also does not cover theft and damage due to fire and other incidents. If your vehicle is not very expensive, third-party insurance is the policy you should be opting for. The greatest advantage is that this type of insurance is extremely affordable.
Good Credit History
Earlier credit scores were important only for getting your car financed, however in recent times insurance companies have also commenced factoring it into the insurance premium calculation. If you have a good credit score, you will invariably be able to get a lower premium. So, it is advisable to boost your credit score in advance of a car purchase to avail this benefit.
Keep Your Mileage Down
The insurance premium that you need to pay is linked to your annual mileage. Therefore, driving less is a very effective method of lowering the premium. Don’t drive unnecessarily and whenever you do need to, you should go by the shortest routes possible.
Do Not Make Claims
For obvious reasons, insurance companies love customers who do not make claims and reward them by giving handsome discounts. Each year that you drive and do not get involved in accidents that have you making claims, your insurance premium gets cheaper. For customers not preferring claims for as long as five years, the premium may be discounted by as much as 80%.
How to Minimize the Insurance Premium of Your Car in Dubai
Be Wise with the Coverage
A car insurance policy is typically a pre-defined set of benefits. Nevertheless, if your policy permits, then opt out of features you do not really need. This helps lower the car insurance premium to some extent.
Purchasing car insurance can be a pretty frustrating process that can take long and cause stress. You should always buy the most optimum cover that is appropriate for your car and usage, and do not take shortcuts that can leave you exposed to huge liabilities. However, with the right approach, you can significantly lower the premium. How to Minimize the Insurance Premium of Your Car in Dubai.