How to tackle rising car and property insurance premiums

Use comparison tools to find the best rates, invest in security upgrades and regularly adjust policies based on your circumstances

The recent rains in Dubai were a prime example of the importance of having comprehensive cove for your cars. Antonie Robertson / The National

In recent years, consumers across the UAE have been feeling the pinch of soaring car and property insurance premiums.

The car insurance market in particular is experiencing significant demand due to the country’s rising population and the increasing number of vehicles on its roads.

On the other hand, adequate cover has become more crucial than ever. The recent floods in Dubai were a prime example of the importance of having comprehensive coverage for your cars and property.

Insurance can seem daunting when it is necessary and expensive, but it is not hard to navigate.

In fact, with a bit of planning and some strategic thinking, it is possible to keep the rising costs under control.

Simple first steps

First and foremost, it is essential to use technology and the abundant information available online to your advantage.

There are numerous comparison tools and apps designed to help you determine the best insurance rates. These tools often allow you to enter your information once and receive several quotes.

This is a convenient way to ensure that you are getting the most competitive rates available – a good starting point in your insurance premium analysis.

Stay proactive to balance cover and expenses

Investing in security upgrades for your home and car can make you appear less risky to insurers.

Simple measures such as installing alarm systems and smoke detectors can have an impact, too. Similarly, adding antitheft devices and tracking systems to your car can reduce your risk profile.

Regularly reviewing and adjusting your policies according to your life’s trajectory will also give you considerable advantages that add up over time.

Perhaps you are driving less these days or you have recently renovated your home – such changes can affect your insurance needs, and failing to adjust your policies accordingly can mean you are paying for cover you no longer need.

Insurer’s decisions like whether a water-damaged car must be written off or fully repaired have financial implications for policyholders.

Writing off the car provides a lump sum payout, but this might not cover the full replacement cost and could affect your future premiums due to a total loss claim.

On the other hand, opting for full repairs might save the vehicle but could lead to continuing issues and a potential decrease in resale value.

Evaluating the pros and cons of these options carefully can help in making a well-informed decision. Taking the time to review your coverage needs regularly is essential.

Awareness and communication

Insurance laws and regulations change periodically, often affecting premiums. New regulations can sometimes introduce more competition into the market, potentially leading to better rates.

Therefore, you could consult with an adviser to keep tabs on industry changes and gain awareness of new products.

Tracking such developments periodically is advisable because knowledge is power when it comes to navigating insurance.

Personal advice increases your awareness of changes and helps reap the benefit of new opportunities to lower your premiums.

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It is also important to build a good relationship with your insurance provider. When your insurer understands your needs and situation, they can provide tailored solutions and better terms.

Some insurers will provide periodic policy reviews on their own, but you could also take the first step to have such conversations.

Regular communication ensures that any changes in your circumstances are promptly reflected in your policy.

Being transparent about your requirements will go a long way in building your relationship with the insurer. Honesty builds trust and can lead to more favourable terms as your insurer can rely on the information you provide.

Faisal Abbas is vice president of employee benefits and general insurance at The Continental Group