Received a car insurance quote that is cheaper than all the other quotes in the market? You might want to reconsider it. Sometimes, Car insurance quotes can be drastically reduced through minor alterations to the details of your car insurance policy. One such alteration could be reducing the car value. Read on to find out how this can be done!

What’s the connection between Car Value and Car Insurance Quotes?

Insurance companies calculate the cost (premium) of your car insurance policy based on the value of your car. This means that higher the car value, the higher will be the cost of insuring the car. It’s important to always check the value of your car in the insurance policy, as some car insurance companies may reduce the value of your car to give you a cheap car insurance quote.

How can my Car Value be reduced?

This can be done in two ways:  reducing the car value directly in the policy document or by increasing the depreciation percentage of your car.

How it’s done:

  • Reducing the Car Value Directly on the Policy Document

    Reducing the Car Value on your policy document automatically brings the premium down. For example, instead of placing the car value as AED 100,000, your insurance company might place the value of your car as AED 80,000. This will reduce the cost of your premium resulting in a Cheap Car Insurance quote. But in case of a total loss, you will end up receiving less than AED 80,000 as the claim amount. Also, it will be extremely difficult to increase the car value next year in your insurance policy.


    Most of us are aware of the fact that cars depreciate in value over time. Insurance companies use a depreciation rate for your car when calculating its current value. In some cases, the depreciation rate used by the insurer is higher than optimal. Be sure to ask the insurer what percentage they are using to calculate depreciation. Remember, this is an important factor that directly affects your payout if the car is deemed a total loss after an accident.

Before opting for the cheapest car insurance quote, it would be worthwhile to check all the terms and conditions, before you sign on the dotted line.

After all, Small Print Matters!