Owning a car in the Emirates is a necessity for most, but the costs can add up quickly. Between fuel, Salik, service charges, and registration, your vehicle is likely one of your biggest annual expenses. However, there is one cost that is often inflated simply because drivers don’t know how to optimize it: insurance.
Many luxury car owners and families with multiple vehicles unknowingly overpay by thousands of Dirhams every renewal. By being strategic, it is entirely possible to slash your premiums significantly without compromising on safety. Here is how you can unlock those savings.
1. Master the “no-claims discount” (NCD)
The golden ticket to cheaper insurance is your driving history. If you have gone a full year without making a claim where you were at fault, you are entitled to a No-Claims Discount. In the motor insurance in UAE market, this discount is progressive.
- 1 year claim-free: Up to 10% discount.
- 3 years claim-free: Up to 15-20% discount.
- 5 years claim-free: Can go as high as 30-40% with some insurers.
Always ask for your NCD certificate from your previous insurer before switching. For a high-value SUV, a 20% discount alone can save you AED 1,500 to AED 3,000 instantly.
2. The “agency repair” trap
For the first two years of a new car’s life, agency (dealer) repair is standard. However, extending this option for cars older than three years causes premiums to skyrocket. Premium workshops and “Non-Agency” garages in the UAE are often graded A-class and use genuine parts, but cost significantly less than the dealer. Switching your vehicle insurance in UAE policy from “Agency” to “Premium Garage” repair after the third year can reduce your premium by 30% to 50%—a massive saving that often exceeds AED 2,000 on luxury models.
3. Review your “extras”
Insurers often bundle add-ons you might not need.
- Off-road cover: essential for a Jeep, but useless for a Sedan.
- Rent-a-car: convenient, but if you have a second car at home, removing this can save AED 300-500.
- Oman cover: If you don’t plan a road trip this year, why pay for it?
Customizing your policy to strip away unnecessary fat is the quickest way to lower your rate.
4. Bundle and save
Do you have a home insurance policy? Or perhaps a second car for your spouse? Many insurers offer “multiline discounts” if you insure multiple assets with them. Bundling your home and car policies can trigger additional percentage drops on the total bill.
Unlock maximum savings with Colemont
Finding these savings requires navigating a complex market, and that is where Colemont excels. We don’t just sell policies; we engineer value.
At Colemont, we provide complete insurance services designed to protect your wallet as much as your car. We analyze your driving history to maximize your NCD, negotiate with top-tier insurers to get you the best repair rates, and help you bundle policies for maximum efficiency. We do the heavy lifting to ensure you aren’t leaving money on the table.
Stop overpaying for the same coverage.
Drive smarter and save bigger. Contact Colemont today for a free insurance review and see how much you can save this year.
Frequently Asked Questions
1. How much can a No-Claims Discount (NCD) actually save me?
If you maintain a claim-free driving record, you can earn a progressive discount on your premium. This typically starts at 10-15% for one year and can go up to 50% for five consecutive years.
2. Does switching from “Agency” to “Non-Agency” repairs really lower costs?
Yes, significantly. Agency repairs are premium-priced. Switching to “Non-Agency” (approved garage) repairs after your car’s warranty expires can reduce your insurance premium by 30% to 50%.
3. Will increasing my deductible reduce my annual premium?
Yes. Agreeing to a higher deductible (the amount you pay out-of-pocket for a claim) lowers the insurer’s financial risk, which they typically reward with a lower annual premium.
4. Can I get a discount for insuring multiple cars?
Yes. Many insurers offer “Multi-Car” or “Bundle” discounts insuring your second car or bundling your car insurance with your home insurance can trigger additional savings on the total policy cost.
5. Is it cheaper to pay annually or in monthly instalments?
Paying annually is almost always cheaper. Monthly payment plans often involve third-party financing or administrative fees that effectively increase the total cost of the policy.