(MENAFN- Khaleej Times)After a 15-year relationship my insurer unceremoniously booted me out. I was told that based on a single recent claim they no longer wanted my business; no regard for my history or loyalty no regard for the fact that even with the last claim they were in the money. I grudgingly set out to find an alternative provider. I'm glad the renewal was denied. I found better deals not just in terms of the premium charged but also flexible covers and practical benefits.
Every vehicle on the roads of the UAE must be insured. What you pay for insurance depends on an array of factors including your age the type of vehicle you drive and whether you are opting for third party cover versus comprehensive insurance. The former covers third party damage for accidents that are deemed to be caused by you leaving you to bear the cost of damage to your own vehicle. The latter covers all damages from the accident. Just like buying a car there isn't a universal best option. A lot depends on personal preferences. You should find what works best for you in terms of coverage policy features as well as financials. Stay in the driver's seat: Some dealerships will make you a bundled offer which includes auto insurance from their preferred partner. That does not mean you should take it. Shop around: In most cases the premium rack rates across the two-dozen auto insurance providers in the UAE range from 2.25 per cent to 3.75 per cent. That excludes exotic cars. Several providers' websites offer online quotes. Alternatively you could go to a product aggregator website such as souqalmal.com. Understand the math: Be wary of headline rates. Some providers will have a low baseline premium but may add 15 per cent for agency repair a few hundred dirhams for driver coverage and a few more for passengers. Compare the absolute amount across options. Another key financial component is the deductible - the amount you need to pay for every claim. A low premium rate with a Dh1000 deductible may turn out to be more expensive than a higher rate policy with a Dh300 deductible. Features and benefits: There is a whole range of paid add-ons as well as freebies. Make sure you know what's on offer. Consider which of these you'd like to have: Vehicle recovery service replacement car car hire discounts the claims process car registration service and agency repair coverage. If you are more adventurous consider: Off road cover GCC coverage. Competition has enriched products resulting in additional value added services that have nothing to do with your vehicle such as airport pick up and drop off services airport meet and greet services document delivery service and home maintenance services. No claims bonus: With most providers you will qualify for a discount if you have had no claims in preceding years. Consolidation discounts: You may get a lower premium rate if you have other policies with the same provider. Drive carefully: While this is an obvious one for safety reasons there is a financial rationale for it too. Historically insurers have looked at demographic data and churned out standardised rates across diverse groups of individuals. At best they looked at the no claims history. That is starting to change with technology. Insurers in the UAE can now look at several other factors such as black points speeding fines etc to arrive at personalised rates for drivers based on perceived risk driven by data. With improved data management and technology advancements auto insurance is likely to get more personal. In developed markets insurers have introduced technologies that monitor individual driving patterns. They collate data on motoring behaviour such as braking distances and time spent driving at night to assess driver risk. As technology evolves the UAE is likely to see a divergence in insurance premium rates - better driving skills and road habits measured by smart devices will be rewarded with lower insurance premiums. Tailgaters beware! The writer is head of consumer finance at Noor Bank. Opinion expressed are his own and do not reflect newspaper's policy.
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