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Car Insurance

Do car insurance premiums increase after an accident in UAE?

Accidents happen. Despite our best efforts, things don’t run smoothly all the time and we can’t control everything around us. Driving is one area where an accident can cause lasting problems, and one of the concerns is that car insurance premiums will go up. There are many drivers from different cultures in UAE, which increases the risk of accidents occurring. So just how much is your insurance premium likely to increase if you are unlucky enough to have an accident?

What will insurance companies consider?

Insurance premiums won’t always go up – there are several factors insurance companies will consider. The UAE insurance industry is quite accommodating and less likely to seize an opportunity to make more money than in many other countries. There is no mandatory premium loading in UAE, so a single accident won’t necessarily cause your premium to rise.

Loading insurance premiums is common amongst many insurers in other countries. It defines the amount that will be added to a car insurance premium to accommodate the perceived increase in risk with a driver who has recently had an accident. With some providers, an accident could lead to your premium increasing by 20-25%. But if you explore some other providers after having an accident you could find yourself a better rate. Bear in mind, however, that you will not get a protected no-claims discount.

What if the accident wasn’t my fault?

This is why you should get a police report immediately after an accident. If you have evidence that the accident wasn’t your fault, it could help with your car insurance premium. The insurance company of the person at fault usually covers the costs, but you may have to claim against your own insurance if the person at fault isn’t found (like in a hit-and-run).

So what factors affect insurance premiums after an accident?

The main factors that will have an impact are:

  • The severity of the accident
  • Who was at fault
  • Your overall driving history
  • Responsible driving

So if you have a minor accident that wasn’t your fault, and you have a clean driving history with no speeding offences, your insurance premium may not increase substantially. Nevertheless, it’s important to use a comparison website like Compare Insurance to look for the best car insurance. This will enable you to find the right deal for your lifestyle, your vehicle and your wallet.

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Categories
Car Insurance

How to get cheap car insurance online

Anyone who uses a car will need car insurance. This is a regular payment which can be a major expense for many people, as well as being time-consuming for owners to set up. There are many different policies out there, often with wide-ranging costs, so how do you ensure you get the best deal for your money? Our experts at CompareInsurance.ae know all the tips and tricks and want to share them with you!

1. Choose a cheap car to insure

If you are looking to buy a new car but are worried about the insurance costs, then take a look at the average insurance costs of cars before you buy. Cars that may be at the same sale price point may have hugely different insurance costs, so always check with an insurance broker before buying.

2. Pay in one go

You will often get a choice of whether to pay your insurance in one lump sum or in monthly instalments. Paying the whole cost in a single go will often reduce the total amount you need to pay, as your insurance company won’t charge any interest on monthly instalments. If you have the funds, then paying upfront is always best.

3. Reduce annual mileage

If you limit the amount that you are on the road, it stands to reason that your insurance premiums will be reduced. Insurance companies analyse your time on the road through annual mileage, so a lower annual mileage will lead to a lower insurance cost. Make sure you are realistic with your mileage claims, though, as if your provider finds out that you weren’t accurate then there could be problems further down the line.

4. Check the extras you get

Different insurance premiums will have different benefits, including windscreen cover, breakdown cover and the use of a courtesy car. All of these will increase the costs of your insurance premium, so it’s well worth thinking about whether you really need to be paying for these benefits.

To compare car insurance, speak to our motor insurance specialists via our online chat or Whatsapp. Our staff are always ready to help you save money, so take a look today!

Photo: Free image by Pixabay