The cost of car insurance has been the talk of the town for some time now. It started mid-2016 when the UAE Insurance Authority (IA) announced the new rules for motor insurance policies. A few months later, the IA introduced the new tariff system detailing the minimum and maximum premiums for such policies.
However, the additional benefits - made mandatory on UAE car insurance policies since January - have driven premiums up, and car owners are now looking for ways to save. The team at price comparison site Souqalmal.com has shortlisted five of the easiest and most practical ways to help you trim your car insurance costs:
1. The ‘No Claims Discount’ of course
This one is a no-brainer. Drivers can reap the rewards of safe driving, thanks to the no claims discount offered by insurers. So if you haven’t made any claims previously, you can get a discount, and have a nice amount shaved off your next car insurance premium. Similarly, a spotless driving history will also help lower your premium. So if you haven’t run into any trouble with the RTA, and haven’t received any black points for committing traffic violations, you stand a much better chance of being offered a lower car insurance quote.
2. Cut the extras, add-ons and optional bits
Do you find yourself paying extra for an optional cover you’ve never used? Why not remove the optional benefits the next time you insure your car to bring the premium down. For example, check if your credit card has a free roadside assistance feature. If it does, cut that from your policy. Or if you only drive on city roads, make sure you’re not paying extra for off-road cover.
3. Boost your excess/deductible
To lower your next car insurance premium, set a higher deductible. The deductible or excess defined in your policy is the amount you have to pay from your own pocket when making an insurance claim. As a general rule of thumb, the higher the deductible, the lower the premium. Check how much the difference would be if you increased the deductible and then make an informed decision.
4. Buy a car that’s cheaper to insure
Not all cars are created equal, and more so, in the case of car insurance. For example, it is cheaper to insure a sedan or hatchback in comparison to a huge SUV. This is clearer now since the new motor insurance tariff rules were set by the IA. For comprehensive policies, the minimum premium for saloons is set at Dh1,300, while for an SUV it is Dh2,000. The premium for an older car model is also likely to be lower than its latest counterpart, primarily because a car’s estimated value will drop with age. So if you don’t want to shell out a big sum on car insurance, be shrewd about what you buy.
5. Compare your options and switch if need be
Don’t ignore this last tip. Make sure you compare car insurance costs in the market, before you decide which insurer to go with. Once you figure out exactly what features you want to prioritise in your policy, a price comparison will make much more sense to you. Insurance aggregators simplify the search for you, by offering you quotes from multiple insurers so you can pick and choose as you see fit.
pf@thenational.ae
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