Compare Car Insurance Online And Save Money
Finding the best deals on your car insurance should be easy, but it’s not. There are so many different policies, levels of coverage and information out there; it’s easy to lose track of it all and pay more than you should.
Need advice on the right insurance for you?
AskMjareb is here to help you save time and money with our online car insurance guide. Whether you are renewing your insurance or purchasing a policy for your brand-new car, we’re here to find you the best car insurance in Dubai, the UAE.
Why Do I Need Car Insurance?
Car insurance covers you, your vehicle, and other people or property in the case you are involved in a car accident.
It protects you from the potentially devastating financial and medical costs that can result from such an accident. That is one of the reasons car insurance is mandatory by law in the UAE. If you own a vehicle, you have to have insurance or risk a fine of AED 500, four black points, and even vehicle confiscation for seven days. The insurance required by law is designed to protect both the driver and anyone (and anything) they might crash into.
We’ll explain using two scenarios:
- You are involved in an accident that wasn’t your fault, and suddenly you have all these medical bills to pay. Thanks to car insurance, these costs are covered by the guilty party’s insurance company.
- You accidentally crash your car into a storefront. The costs of damages can be in the tens of thousands, and not everyone can afford to pay that. Luckily, your legally-mandated insurance covers any damages you may cause to a third-party, like the store owner, or someone standing by who got hurt.
Car insurance gives drivers, cyclists, joggers and property owners the peace of mind they need on the road, and a safety net should the worst happen.
Why Compare Car Insurance Online?
Comparing car insurance online can save you a lot of money and time.
Scanning deals from multiple insurance companies can help you narrow down exactly the type of coverage you require. That way you won’t pay for anything you don’t need. But finding the best UAE car insurance can be a long and arduous task. There’s a lot of phone calls to make, and a lot of information to sift through.
That’s why you need to use an online car insurance comparison site. In under an hour, you can receive the best deals from leading car insurance companies that are relevant to you and your vehicle.
You can also net up to a 20% discount on your policy thanks to a generous No Claims Bonus. Sites like Souqalmal work with all the leading providers across the UAE, like Al Buhaira National Insurance, Dubai Insurance, and Al Sagr National Insurance. You can take advantage of all the deals, offers and coupons it has on hand for every insurer you prefer, and every policy you decide on. It’s all about getting the best value for your money.
What Does Car Insurance Cover?
Car insurance covers any damage to your vehicle or any damage it may cause others in a traffic accident. It can also include cases of theft, fire, flood, natural wear and tear, and more. But it depends on your level of coverage.
Car insurance has three levels of coverage:
1. Third-Party Car Insurance
Third-party insurance covers damages caused to another party, be it a person or property, by your car. This is the most basic level of coverage and the one that’s mandatory by UAE law. It’s important to note that this insurance WILL NOT pay for any damage to you or your car.
Since it’s the most basic plan available, it also means it’s the cheapest. If your vehicle is old and isn’t worth much, you might not want to invest money in additional insurance policies and just stick with the mandatory third-party coverage.
2. Comprehensive Car Insurance
Comprehensive insurance covers almost everything that can happen to your car, like collision, fire damage or theft. It also includes Third-party insurance that’s required by law. If you have an expensive car and don’t want to pay for any repairs after an incident, or are afraid it might get stolen – comprehensive car insurance is the level you should get.
It’s possible to add or remove various features and covers, including (but not limited to):
- Agency repair: Extend agency repair coverage for up to five years.
- Personal accident cover for driver & passengers: Provides financial compensation if the driver or passenger sustain injuries in the event of an accident.
- Emergency medical expenses: Covers medical expenses incurred by the driver or passengers.
- Off-road: Covers damage to the vehicle while driving off-road.
- Roadside assistance: Offers accident/breakdown recovery services that include tire replacement, towing, battery jump start, etc.
- Personal belongings: Covers loss of or damage to your personal belongings while in the insured vehicle.
- GCC cover: Extends territorial coverage to Oman, Bahrain, Saudi Arabia, Kuwait, and Qatar.
- New car replacement: Covers against total loss of a new vehicle with a brand new one of the same make, model, and specifications.
- Natural calamities: Covers damage to the vehicle due to storms, floods, etc.
- Fire & theft coverage: Covers damage to the vehicle due to fire or theft.
- Dent repair: Covers the cost of paint-less dent removal.
- Windscreen repair: Covers the cost of repairing or replacing the windscreen if broken or damaged.
- Replacement of locks: Covers the cost of replacing the locks in case your car keys are stolen or lost.
3. Luxury Car Insurance
Luxury car insurance is a special category for more expensive vehicles. Brands that fall under this category include Ferrari, Lamborghini, Bentley, and Rolls-Royce.
The major difference between regular comprehensive car insurance and luxury car insurance is the price. The higher the value of your car is, the higher the costs are for insuring it. Some insurance companies consider these vehicles a high risk for many reasons: overall high value, expensive parts, increased risk of collision due to tremendous horsepower, and higher theft rates.
There are two main types of luxury cars: performance cars often called supercars or coupes like Ferrari and Aston Martin, and high-value vehicles like Rolls-Royce and Bentley. Performance cars are usually more expensive to insure than the high-value ones, mostly because of the high speeds associated with them. Naturally, you would want a fully comprehensive coverage for a luxury car, due to the cost of replacement parts and the risk of theft.
Specific covers that you should consider for your luxury cars are:
- Collision and comprehensive insurance
- Personal injury protection
- GAP or new car replacement insurance
How To Get Cheap Car Insurance?
The best thing you should do when looking for the cheapest car insurance in UAE is to compare them online. It’s the easiest, most immediate step you can take that will save you plenty of cash.
There are a few things you can do if you want to lower your insurance premium:
- Buy the right car: When buying a car, always consider the insurance. Some vehicles are cheaper to insure than others, so be sure to check with several companies what’s the going rate for your model of choice.
- Limit your mileage: Don’t drive long distances is you don’t have to. All premiums are based on risk, so the more you drive, the more likely you are to get into a car accident. Lower mileage usually means cheaper car insurance.
- Increase your insurance excess: Excess is the part of the insurance claim that comes out of your pocket. The higher your voluntary excess is, the cheaper the premium. But you will have to pay more for car repairs yourself when and if you get into an accident.
- No Claims discount: Take advantage of your insurer’s No Claims Bonus. More about NCB and the discounts it can provide can be found further along in AskMjareb’s online car insurance guide.
- Avoid modifications: Think carefully before modifying your vehicle. It may be tempting to add special modifications to show off your unique style, but it also makes the car more attractive to thieves, which in turn could cause your insurance company to raise your premium.
- Pay only for what you need: Don’t purchase covers you don’t need or want. Extra cover options, like off-road coverage or windscreen repair, can be useful, but they will naturally bump up your premium. Weigh the risk against the cost, and decide which ones you need and which ones you can live without.
What Determines The Price Of Your Insurance?
Most insurance companies look at the same few factors when calculating your car insurance payment quote.
- Vehicle type
- Vehicle age
- How long you’ve had your driver’s license
- Accident track record
The last one, the accident track record, is especially important, as it can drastically affect your annual insurance thanks to something called “No Claims Bonus.”
It pays to be a safe and courteous driver.
Beyond the obvious benefit of not getting into life-threatening accidents, you can also receive a discount of up to 20% off your insurance premium.
What Is a No Claims Bonus?
If you don’t make any insurance claims throughout the term of your insurance policy, you can be awarded a No Claims Bonus (NCB). This bonus, or discount, is provided by the insurance company and can save you quite a bit of money over the years.
The amount an NCB is worth changes from one insurer to the next, and it increases with every year in which you did not make any insurance claims. An NCB of more than five years is very likely to give you a significant discount on your premium.
How Can I Know If I’m Eligible For A No Claims Bonus?
The NCB usually updates automatically, and you’ll be able to see its effect when you renew your annual insurance policy. However, if you’re looking to change insurance companies, you’ll need to provide them with proof that you have not made any claims in the previous years, so they can calculate any discount you may deserve.
Some insurers may include such proof on the insurance renewal notices so you may want to consider hanging on to the most recent one. If not, you might find it on the cancelation letter you receive from your previous insurer.
However, not every car insurance company provides such information of its own free will. In that case, you’ll have to request it by phone, post, or electronic form.
Can I Lose My No Claims Discount?
Yes. If you make a claim on your car insurance policy, you’ll lose some, or even all, of your No Claims Bonus. However, that depends on whether you were at fault for the accident or not. If someone crashes into your car, they are clearly at fault, and your insurer can reclaim its payout from the other car’s insurance company. In that case, you’re NCB will remain intact.
When fault can’t be established, the insurers may decide to split the cost of the claims, and both drivers’ No Claims discount will be affected.
These situations can include car theft or “acts of God” like floods and storms.
Can I Protect My No Claims Bonus?
If you’re afraid of losing your NCB, some car insurers offer an option to protect it from incidents such as theft. It costs a little extra, but it will allow you to make a claim or two a year without it affecting your discount when you renew your policy.
Bear in mind that it won’t necessarily prevent your premium from going up, as your accident track record is a factor for calculating your monthly payment. However, you will retain your 5%, 10% or 20% discount off the final price. That said, there’s no guarantee that it’ll be lower than the previous year, since your overall premium has gone up, plus you’re now paying extra for the No Claims Bonus protection.
Each insurance company has different rules regarding how many claims are allowed as part of the No Claims protection before you lose it.
Start Comparing and Saving Today
Now that you know everything that can help you get the best and cheapest car insurance in the UAE, it’s time to put it into practice.
Start comparing the best UAE car insurance deals and save money on your annual payment and monthly premium. Offers can be as low as AED 799.