How To Save Money On Car Insurance In The UAE

Auto insurance is something that should not drain your bank account.

There are multiple ways to save and still get the proper car insurance coverage.

The truth is, companies base your rate on various factors, starting from the type of car you drive, the time you have been insured, and so on.

Understanding all the key elements related to your auto insurance costs can help you get good coverage.

In this blog, we are showing you the ways you can save money on car insurance in the UAE.

Understanding Factors Influencing Premiums

Before diving into cost-saving measures, it's crucial to understand the factors that influence your Car Insurance Premiums in UAE.

Insurance providers,consider various elements when determining the cost of coverage:

1.Vehicle Type and Age

The make, model, and age of your vehicle play a significant role. Generally, luxury cars or newer models may attract higher premiums due to increased repair and replacement costs.

2.Driver's Age and Experience

Young and inexperienced drivers often face higher premiums as they are deemed higher risk. Conversely, mature drivers with a clean record may enjoy lower rates.

3.Driving History

Your past driving behavior and claims history directly impact premiums. A history of accidents or frequent claims may result in higher costs.

4.Coverage Type

The type of coverage you choose influences premiums. While comprehensive coverage provides extensive protection, it comes at a higher cost compared to basic plans like third-party liability.

5.No-Claims Discount (NCD)

Maintaining a no-claims record can significantly reduce premiums. Insurers, often reward safe drivers with discounts for each claim-free year.

Tips for Lowering Car Insurance Premiums in UAE

They say comparison is the thief of joy, but not in our case as you need to compare different insurance firms and see which one’s the best for you.  

You should look for add-ons, off-road covers etc. 

Don't forget to compare different plans from different providers and different plans from the same provider. 

Nowadays, there are multiple car insurance providers in the UAE.

This makes choosing the right option easier.

All you need to do is start comparing the policies, see what each one of them includes, and choose a car insurance policy that best suits your needs and budget.

2. Select The Essential Add-ons Only

Second, on our list of tips is related to the add-ons, or choosing only the ones that you really need.

Every car insurance policy has different extras, and there are some benefits over the basics.

The best way is to go through them and see what you need – chances are, you don’t need all of them.

Also, know that many car insurance companies charge more for the add-ons that may eat up your insurance premium.

It’s understandable if you are paying for a more comprehensive plan if your car’s new and you need to be safe than sorry.

But a more old one that you have been driving for years might not be worth the extra cost.

Re assess your insurance policies every now and then and make sure you are looking for your car’s current recommendations and demands.

3. Driver Details

The car insurance costs nowadays are also connected to the driver – more specifically, their age and history.

If the driver is under 25 years old, your premium will be higher.

Also, experienced drivers have a lesser chance of accident, which is what makes the cost of the insurance premium go up if the driver is a beginner or has a poor driving record.

A great tip to keep your premium low is to get a driver that is a family member over 25 years old with a clean record and no past insurance claims.

UAE has system of black points for road and traffic rule violations. 

The more you drive with caution the less black points you have.

Less points = More discount. 

4. The “no Claim” Bonuses And How To Make Most Of Them

In the UAE, there is a “no-claim” bonus rule, which means that if the insurance holder has not made any specific claims in the previous years, the insurer might offer an additional discount on the car insurance premium.

The best way to save money on car insurance is to get that no-claim bonus.

Fewer claims = More discount.

If you spend a long time within a plan without any claims, the more discount you will get in return.

It’s when you finish the term of a car insurance policy without any claims, you get to have the no claim bonus discount.

The discount increases annually as you go and could save you up to 50%.

If an accident or something happened and it’s affordable for you, do not submit a claim for it.  

Majority of insurance firms exclude third liability claims from the no claim bonus window. 

That being said, you can still get your discount if you submit a third party claim. 

Don't forget to confirm it with your provider beforehand. 

5. Increase Your Deductible

For those of you who don’t know, a deductible is a fixed amount that you pay on your insurance claim to get your car repaired.

Your car insurance company usually covers the rest, but it is up to you to select the proportion that aligns with your needs.

However, the higher the deductible is, the lower the cost of your car insurance will be.

A low insurance rate might also result in a higher deductible, so when filing a claim, examine all the details associated to the coverage.

The amount of the deductible is already is already figured out pre plan.

The amount can be measured in percentage or a lump sum form. 

This means the more a deductible holder is paying, the less the risk for the insurance company. 

This is why, it's benefical for you to take this step as it would allow you get excellent discounts on your insurance premiums. 

A large amount of insurance firms let you choose the amount you are willing to pay voluntarily. 

So its a good idea, if you calculate the amount you would be able to pay if a situation arise.

When paying for the deductible choose the highest amount you can afford. 

6. Review Your Coverage Before Renewing It

The majority of drivers in the UAE would allow their car insurance coverage to renew automatically and not get bothered about it.

However, reviewing everything before it renews can help you save money on car insurance – especially when you opt out for different details or request a new insurance premium at the end of your term.

For instance, if your driving history has increased and you have good driving behavior, you might get a better rate.

Similarly, if you changed your vehicle and the current one has more safety features (or you decide to add them), the cost of your car insurance will go low.

7. Shop For Car Insurance Online

Insurance can be bought in various ways.

In terms of popularity, online car insurance providers are trending and often present the easiest way to buy car insurance from the comfort of your home and office.

This way, you can save time and buy cheap car insurance across the UAE.

Online shopping discount is probably the best discount to secure.

As we live in the digital age, many insurance companies are encouraging digital shopping. 

They offer great deals to encourage more people to shift to digital shopping. 

8.Consider The Miles You Drive 

Though, not really notorious, the car mileage is another factor you should consider.

If someone drives his car on a daily basis, he will be paying more than someone who’s driving the car in certain occasions. 

As a result, you should consult the insurance company about their policies. 

There are different plans, so make sure to check them out thoroughly. 

If you are really sure about the usage limit and the way you drive.

A good option to consider is the pay as you go option. 

This option allows the insurance firm to track the miles you go and the usage in real-time to specify and detect how you drive and how often do you use your car. 

If your record’s perfect and you are driving within the threshold, you should keep on getting discounts as long as you stay in the threshold. 

You have to find out if the provider offers this benefit and if you feel you will stay within the threshold you should consider it. 

9.Get More Driving Courses 

Get defensive driving courses such as accident pevention courses.

Hence, less risk for the insurance firm and the less you pay. 

10. Choose Smaller Cars

The less luxurious and less in size your car is the less you pay. 

Bigger cars and more luxurious ones often have parts that are equally expensive.

Consider environmentally friendly cars, insurance firms will notice that your car has environmnent safe features. 

Buying a car smaller in size than an SUV will cut down insurance costs heavily. 

11. Finance Wisely 

Not very well-known, but insurance fims also consider your credits score and credit history when offering a quote or discount. 

A good score indicates an individual who’s responsible and trustworthy. 

The way you handle your finances gives a lot about you as a person. 

Insurance firms are just business entities that always look for responsible and trustworthy personnel's. 

12. Consider your location 

It's important to consider the location too. 

Consider the potential move if you are moving to another city or emirate. 

The same plan can cost you more in an emirate than the other. 

Conduct an inspection on the different plan costs and find the one that suits you best. 

13. Get a few Car Mods 

You might have read that modified cars can make it harder for you to get an insurance. 

The truth is that a few small adjustments can get you both a great discount and a good plan. 

Installing devices like anti-theft devices means less risk for the insurance company.

Practical adjustments can save you large amount of money in the bigger picture. 

 

14. Get Advice from the Experts 

Getting expert advice too could help as this would enable you to actually grasp the market trends and see what you’re missing out. 

Contacting a financial expert or advisor could help you secure special discounts and offers. 

15. Research Regularly 

You’ve got the insurance plan? Cool! 

This is not the last step though. 

Insurance companies introduce benefits and discounts on a regular basis, so make sure to check out for the merits. 

A deep research when renewing your plan is important for you to get the best deal. 

16. Think Strategically 

Planning to buy an insurance plan can be a headache for most people, you want to ensure maximum protection while ensuring getting the best deal out there. 

Given this you should consider your situation, you have to see if you really need a cover. 

An example if you live in an urban area and you don’t go off-roads spending money on an off-road cover is not necessary. 

So think strategically about what you really need. 

17. Consider your car’s value 

It's essential to consider your car’s value, many people do the mistake of overestimating the car’s real value.

You need to avoid this by getting an estimate of your car’s actual value.  

You should consider a depreciation around 20% or less each year of the car’s average value according to the model.

You should aim for a cost efficient option and you could do this by aiming for a low but realistic value. 

18.  Increase your Car Insurance Excess 

Increase the amount you’re willing to pay for future claims.

Increasing your insurance excess will help you in securing better deals.

That being said, you may pay more money for tiny repairs though. 

FAQ’s 

1. How to get the cheapest car insurance? 

The truth is there’s no magic trick in getting the cheapest car insurance plan.To get the best insurance deal, you need to consider factors like your driving habits, how you handle your finances, researching different plans and choosing the best one for your needs. 

2. How much is full insurance on a car in UAE ? 

Factors like your age, driving habits and claims history all influence the cost of your car insurance. That being said, the price of a full insurance in UAE could range from a 450 AED up to 5000 AED. 

3. Can I transfer my car insurance to another person in Dubai? 

Yes, it’s possible in the case that the insurance is valid for more than 9 months. You have to submit the other person’s details to the firm, so they see if they fit their criteria.  

4. How much is third party car insurance in the UAE? 

Influenced by factors like credit score and location. Third party insurance in UAE costs around 500 AED to 1000 AED. 

Final Thoughts

Securing the best deal on car insurance is not a hidden secret or a magic trick. 

It’s about simple strategies and best practices you can make to get the best price for your needs. 

Small modifications like installing car mods and improving your driving habits could help you secure deals and promotions from different insurance firms. 

All you have to do is apply these simple, yet effective steps covered in our blog to make sure you get the best deal. 

If you want ways to avoid insurance scams make sure to check this blog too.

Ready to roll? 

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To get the perfect set , look no further than tyresonline.ae

All you got to do is search by your car model or tyre size and you will secure your deal in less than 60 seconds! 

Updated by: Rageh