Arriving at a Cheaper Cost of Vehicle insurance in UAE

Arriving at a Cheaper Cost of Vehicle insurance in UAE

Third-party liability insurance (TPL) is the most basic form of Vehicle insurance in UAE available in the market — it offers the minimum amount of coverage you need to drive legally in the UAE. It is also referred to as liability-only or act-only policy. The policy covers all sums you are liable for, such as injury or loss of life and damages to the vehicle or property of the third party. It will not cover the cost of damage to your own vehicle. Similarly, if your vehicle is stolen or damaged in a fire, your insurer will not pay to replace or repair it.

On the other hand, a comprehensive vehicle insurance offers maximum coverage as it covers for not only third-party liabilities and losses, but also covers for damages caused to you and your own car.

When do I opt for TPL insurance?

You can select TPL insurance if your car is not a new car and has low-cost repair options. It is also the only option available to you if your car is 10 years or older. All insurance companies offer third party liability insurance, and it is the most optimum plan for a person who needs mandatory covers.

You may assume TPL to be the cheapest form of insurance cover. But this may not be the case always and drivers may at times pay more for lower cover. This is because certain risk factors also affect the cost of the policy and we give you a fair understanding on how you can arrive at a cheaper cost of vehicle insurance by keeping the risk low.

Vehicle condition and safety features:

One option to save money on your vehicle insurance policy is to ensure that your vehicle is in overall good condition. Another fantastic way is to have safety devices (airbags, anti-theft alarm, trackers) installed in your car. This will contribute to lesser risk and lower your vehicle insurance premiums.

Driver’s age:

The age of the driver is one of the most consistent factors that impacts insurance cost. Drivers above the age of 65 or under the age of 25 end up paying more premium due to the risk of age factor related to health issues and less driving experience respectively.

Add-on covers:

Choose the add-ons in your policy carefully in terms of benefits vs cost, as each additional cover will increase the premium. If your driving is limited to UAE and you do not use for your vehicle for high risk-activities, then you can drop the GCC and off-road coverage. Go over your additional coverage line by line and omit anything you don’t require.

No claims record:

You can avail a discount if you display a history of no claims at the time of insurance renewal. The most interesting aspect about ‘No Claim Bonus (NCB)’ is that it is cumulative, which gives you more percentage of discount if you have claim free record for several years.

Online insurance:

Most insurance companies offer an exclusive discount for insurance policies brought online. Through online portals you can receive multiple quotes from varied insurers, compare the quotes and opt for the one that provides the most comprehensive cover at the lowest premiums. This helps save a decent amount.

You need to present a low-risk profile to obtain a lower cost of insurance. Research on the various policies, weigh the covers vs cost and zero in a plan that suits your requirement as well as budget.

If you are thinking to switch from one insurance provider to another; or if you want to avail an economical vehicle insurance deal, contact our insurance advisors and they will address all your apprehensions and offer you the most reasonable deals in the market.