Car insurance can be quite expensive, and it is also essential for other activities such as applying for an international driving license in UAE, but there are ways that you can cut down on the cost of a basic insurance package. This article will outline a few of the ways you can encourage an insurance company to provide you with a more cost effective package.
1. Get Multiple Quotes: Different companies usually think different of certain factors. A factor that may be high risk to one company might not be to another. You will usually be able to find a company that values your needs at a less expensive rate than others. Although there aren’t many significant car insurance companies in Dubai, you might be pleasantly surprised nevertheless.
2. Buy a Low Tier Car: As long as it runs smoothly and gives you what you need, buying a car from a lower tier can reduce your quote substantially. One of the biggest factors when judging your insurance requirements and prices is your car which will belong to a certain group. Depending on the standard of group ratings the company follows, there are about 20 car groups. The higher the rating of the group, the higher your insurance premium is.
3. Third Party Only: Third party only insurance packages are the most affordable type. It is also the bare minimum of coverage you are required to have as a car owner. If your car is not very expensive, this is a reasonable type of coverage to buy when purchasing car insurance in Dubai. This is a realistic and reasonable type of coverage to get if your car is not very expensive. If this is your first car, buying one from a low tier group and getting third party only insurance can be very affordable.
4. Good Credit: Having a good credit rating can go a long way in reducing your insurance premium. This is actually a relatively new factor taken into account by insurance companies. If you are planning to buy a car in the near future, try to bring your credit history up before doing so as it will help you avoid overhead premiums.
5. Online purchasing: By buying online, you skip utilizing certain company resources such as an agent’s time and toll free costs. This results in a fairly significant discount in many cases. Buying online may not give you all the information you want if you are a first time insurance buyer, but the discount may just more than make up for it.
6. Drive less: The amount you drive in a year can severely affect the amount of your insurance premium. If you can find shorter routes and walk more instead of driving short distances, you can greatly reduce your annual mileage. The number of miles you will be thought to drive will fall into a certain range, so try to figure out an accurate expectation of your mileage to get an accurate quote.
7. Stay Claim free: The number of years you go avoiding any kind of traffic incident can be a huge factor and dramatically reduce the cost of car insurance. If you go for 5 years without any kind of incident you can get enormous discounts up to 80% or even more. This is probably the biggest asset in determining your rate, which is why some companies give you the option of protecting your no claims bonus for the coming year.
Buying car insurance can be nerve wracking and a little bit stressful, but it doesn’t have to empty your wallet. It is exceedingly useful to have as it protects you, your car, and even covers your own mistakes. It also makes applying for other legal requirements easier, as you would require sufficient insurance and an international driving license from UAE to travel around the region.
By V Joe