After launching our “Insure Now, Pay Monthly” service over one month ago, the Souqalmal team has noticed increasing interest around the offering from potential car insurance buyers. From those looking for affordable ways to renew their existing insurance policies to new car owners trying to fit car insurance costs within their budgets – The option to pay for car insurance in monthly installments has clearly taken off in a big way.
To understand how this service is helping users and what sort of financial impact it has had on them, we spoke to some of our customers to gauge what they thought about the service…
Why compromise on your coverage when there’s another way out?
When it comes to car insurance benefits, TPL (Third-Party Liability) insurance is no match for comprehensive insurance. While the former may be the cheaper option, all it offers is financial coverage against damage caused by your car to third-party individuals or third-party property. Comprehensive insurance, on the other hand, offers you well-rounded coverage by covering loss or damage to your own car in addition to covering third-party claims.
But chances are, given the financial strain caused by the current pandemic, many would be forced to choose TPL car insurance, since it is the more affordable option. So how can we help people avoid this sort of downgrade, which would leave them vulnerable to a much higher financial risk over the policy tenure?
Ananth, an Indian expat living in the UAE, recently bought a comprehensive car insurance policy through Souqalmal and opted for the 6-month installment option to pay for it. He shares his experience here.
“Like most people impacted by the COVID-19 pandemic in one way or another, I too have been forced to make some tough financial decisions to keep afloat. My employer announced a 50 percent pay cut over three months back, and I’ve had to adjust my expenses accordingly. Meeting regular day-to-day expenses has turned into a pick-and-choose exercise, so when my car insurance was up for renewal last month, I was obviously nervous.”
“As I was looking at car insurance options, I was mentally prepared to downgrade my comprehensive car insurance coverage to a TPL one – At that point it seemed like the easiest way to cut my car insurance costs. That’s when I came across Souqalmal’s monthly payment option and called their call center to get more details. I found that I could retain the same level of insurance coverage I previously had, without shelling out a lump-sum payment for it. I picked the 6-month installment plan, made a nominal up-front payment and was able to convert my insurance premium into installments I could easily afford over the coming months.”
Financial relief for cash-strapped car owners
You may have access to deferred loan and credit card repayments, in the way of debt relief from banks. But what about your insurance? Surely some sort of ‘insurance relief’ will go a long way in keeping your financial situation stable, right?
That’s exactly why Souqalmal launched its monthly installment service in the middle of the COVID-19 pandemic – To offer financial flexibility to any car owner who may need it at this time.
Here’s what Leanne, a Filipino expat working in Dubai, thinks about the monthly payment service…
“Me and many of my colleagues were assigned a two-month unpaid leave starting in May. So, I had to go without any income for two months, which meant that my budget and all other financial plans were up in the air. Since I couldn’t leave the UAE to go back home at that point, I had to tap into my savings and find a way to sustain myself here.”
“Fortunately, the bank agreed to give me a two-month payment holiday on my personal loan. But my car insurance coming up for renewal in June was an added worry – It was an unavoidable expense after all, and I wasn’t aware of any financial relief measures to ease that burden. My search for an affordable car insurance solution finally landed me at Souqalmal, where I was able to convert the annual insurance premium on my new policy into monthly installments spread out over 12 months. This option has allowed me to focus on retaining my income and savings to use towards crucial monthly obligations without having to worry about my car being under-insured.”