There are many factors that determine how your car insurance premium is calculated. A clear understanding of this pricing strategy can help you cut back on your car insurance premium.
No Claims Discount
No claims discount is the discount offered upon renewal of your car insurance policy if you don’t make a claim during your policy tenure. The rate of this discount goes up every subsequent year you go without making a claim on your policy. Within the UAE, this can get you a discount of up to 20 percent as specified by the UAE Insurance Authority.
From the point of view of an insurance provider, more policies spell out more business. Getting multiple vehicles insured by the same insurance provider can get you a considerable amount off, applicable to all your vehicles.
Bundled insurance coverage or a multi-line insurance combines your car insurance policy with other lines of insurance like homeowners’ or life insurance. This is beneficial to the insurance provider since it gets him better revenue, and to the customer because it affords a significant amount off the annual premium.
Loyalty pays when it comes to car insurance renewal. Many insurance providers offer a renewal discount to returning customers as a show of gratitude for continuing their business with them.
Many organizations obtain corporate insurance plans that offer their employees a discount on their car insurance premium. It is worth checking with your employer if your organization is a part of any such corporate schemes before opting in to a policy.
Consider Raising Your Deductibles
A deductible is the amount you are obliged to pay out of pocket in case of a claim. If you are a safe driver with no history of accidents, it makes sense to raise your deductible rate to get a substantial discount on your premium. Your insurance provider will be happy to offer this discount since it also becomes less burdensome on him in the event of a claim.
Research Is Important
Research includes getting multiple quotes, hunting for good deals, browsing around for discount vouchers and doing careful comparison shopping. The most convenient way to carry out this research is online. Proper groundwork will not only get you better price, it will also get you better insurance.
Choose Optional Extras Wisely
Most car insurance policies are offered with a set of add-on features as well as pre-determined benefits you can opt out of. It makes sense to cut back on some features that may be irrelevant to your situation. This will make a noticeable difference to your total premium.
Secure Your Vehicle
Installing safety features like anti-theft alarms and steering wheel locks puts your car in the low risk category and makes it eligible for an insurance discount.
Another way to save big on your insurance premium is to avoid modifications to your car. Expensive gadgets and modification are considered high risk and warrant a significantly higher insurance premium.