There are several things that can affect the amount of money you shell out on your car insurance. A basic knowledge of the types of discounts offered by insurers and an insight into their pricing strategies can be helpful in bringing down your premium.
The team at Souqalmal.com has shortlisted some tried and tested strategies you can use to reduce your car insurance premium and save some extra cash this year:
Multi-Car Discount
If you own multiple cars, it only makes sense to get all of them insured at one place, doesn't it? Plus, since multiple policies mean more business, insurance firms will offer a generous price cut on the premium.
No Claims Discount
No claims discount is a discount offered by the insurer during policy renewal as a reward for maintaining a claim-free tenure. The size of the discount increases every successive year you go without making a claim on your policy. In UAE, the discount typically varies between 10-20%.
Bundling Discount
Loyal customers who tap a single firm for multiple types of policies are eligible for discounts since they are a good source of business. Thus, clubbing your car insurance policy with other types of coverage such as home or life insurance can lead to a reasonable price cut on the yearly premium.
Renewal Discount
Car insurance firms value loyal customers who maintain long-term ties with them. In fact, most insurers offer a renewal discount to returning customers as a token of appreciation.
Corporate Discount
Nowadays, most companies offer their staff corporate insurance plans that offer cheaper premium rates. You should check with your HR department if your company has a tie-up with an insurance firm.
Consider Increasing Your Deductibles
A deductible is a predefined amount that you are obliged to pay at the time of making a claim against your policy. If you have an accident-free history, it's advisable to increase your deductible and get a significant reduction on your premium. Insurance companies are always on board for such discounts as it reduces their financial responsibility in case you make a claim.
Always Carry Out Research
An extensive research goes a long way in zeroing in on an insurance firm that meets all your needs. So don't just make up your mind after talking to just one firm. It's always advised to get multiple quotes, look out for good deals, and maintain a spreadsheet to compare the pros and cons of each insurance provider.
Choose Add-Ons Wisely
Car insurance firms usually offer a variety of add-ons that you may not even need. While add-ons can be helpful in some cases, you must use your judgment while selecting them. If you think you would not require a particular benefit on your policy, strike it off to make your total premium lighter.
Vehicle Safety Is Key
Equipping your vehicle with anti-theft locking devices, safety alarms, and steering wheel locks will put your car in the low-risk category and help you bring down the premium amount.
Avoid Excess
Installing high-end gadgets such as modified car lights, etc. can put your vehicle in the high-risk category and drive up the premium amount, so avoid the frills wherever possible.