Buying car insurance isn’t something to do on a whim. It can be expensive and you might end up with insurance that doesn’t fit your needs. It’s always important to compare different car insurance options first. You also need to understand the different terms and components that impact your car insurance cost. The most important is the premium which is the main cost of your insurance. But what should you know about premiums and how is the price determined?
Car insurance cost in the UAE has been increasing in recent years. While most people can’t influence the premium prices, there are actually some things you control. If you are looking for a cheaper premium, then you should keep in mind the following factors.
1. Your age and experience matters
You can’t change your age, of course. But it’s still important to know that your premiums might go up and down based on your age and driving experience. If you are a new driver and under the age of 25, then you are going to end up paying more for your insurance. This is not something you can control but you should remember to check for new insurance as you get older. You could find a cheaper deal later on as you keep driving. While premiums tend to drop as you get a bit older, once you start hitting your retirement years, the prices do tend to increase again.
2. Your driving history plays a big role
You definitely want to try and keep on the road. If you have a history of a lot of driving accidents and traffic fines, your premiums are going to go up. Insurance companies will consider you a liability and they take past behavior as a model for future behavior. Therefore, if you want to keep your premiums low, you want to show what a good driver you are. You want to stick to traffic rules and maintain a clean record for as long as possible.
It’s also worth checking if your car insurer gives a discount if you monitor your driving. It is possible to have a reader in your car to monitor your driving style. This can feed information to the insurer and show that you are a consistently good driver. This could help lower your insurance premiums in the long run.
3. Your no-claim bonus can add up
Relating to the above point, most car insurers in the UAE offer benefits to drivers with a clean record. This means that it can actually be more beneficial to avoid claims even if you get into a small accident. A no-claim bonus is often given to drivers who have a clean record for a specific amount of time. This is often a few years. If you don’t make claims then the bonus could be deducted of your premium. So if you do end up in an accident and you are thinking about making a claim, it’s worth considering before you claim. You might be better off forking out the cost yourself. Of course, this isn’t always the case and you shouldn’t be afraid to make a claim if you really need to.
4. Your vehicle impacts your premium
Car insurance isn’t just about your driving skills. Your actual car can play a big role in terms of the premiums you have to pay. Luxury cars can have higher premiums because they tend to have more expensive repair bills. But this doesn’t mean that cheaper cars are better. For example, modern cars with their sophisticated safety features can bring down the cost of your car insurance. Therefore, it’s a good idea to check around for car insurance costs before you buy a new car. If you are currently driving an old vehicle then it might also be worth looking into buying a car. You could end up saving money on your car insurance.
5. Your car repairs are important
Now you can also reduce your insurance premiums by keeping good care of your car. Having it regularly checked and serviced can drag down the price of the premium. It is worth keeping your car in good working order. However, where and how you repair is also important. You need to make sure to use a repairer that’s approved by your car insurer. Car insurers often have a list of repair agencies they accept. If you go and repair from a non-approved agency, you could damage your premiums. Your insurer might increase the premium or give another type of fine as a result.
6. Your additional car insurance features
Your car insurance could come with other lovely features. These are often optional benefits. They can include things like international insurance, roadside assistance and so on. You should consider what you need from your insurance to ensure you can opt for features that are worth it. Overall, it’s important to understand what your insurance covers and doesn’t cover. This way you can tailor it to be exactly what you want and need.
7. Buying car insurance
Getting the right car insurance won’t be difficult. You can buy online car insurance in minutes. But as the above shows, you need to be aware of certain things. It’s a good idea to compare different car insurance options at the website such as a Bayzat and understand the different terms. With the above tips, you can take a more critical look at your insurance premiums and better determine if specific insurance is the right one for your needs.
Whether you are looking for your first car insurance or getting close to renewing an existing one, you want to make sure you understand what you are paying for. So look at your insurance and make sure to compare different insurance options. You should also keep in mind that switching insurance might have an impact on your premiums. Furthermore, your insurance might be for a specific amount of time during which you can’t swap. It is important that you carefully look at your policy beforehand.