Driving safe in UAE helps you save money, says expert

Driving safely in the UAE makes one eligible for a no-claim bonus of up to 20% or even more, said an industry expert, noting that according to the UAE Insurance Authority, safe drivers must demand a no-claims bonus for your car insurance.

All the car insurance companies in the UAE offer a unique proposition namely, No-Claim Bonus (NCB), whereby the policyholders are rewarded for not making any claim in the preceding years, added Neeraj Gupta, CEO Policybazaar.ae.

As per the UAE Insurance Authority, an insured that has not made any claim for 1 to 3 years is allowed for a discount between 10 percent and 20 percent while renewing their car insurance in UAE. Drivers with a clean record for one year would receive a 10 percent reduction in premiums.

Furthermore, drivers with a 2-year accident free period can avail up to 15 percent discounts and ones with 3 years, can receive a whopping 20 percent discount. Additionally, if you have an excellent driving record, then some car insurance companies in UAE may provide you up to 50 per cent no-claim discount, considering your age, profession, and travel or driving history, among other factors.

While NCB is what companies reward the policyholders for every claim-free year, first-time motor insurance buyers in the UAE are not entitled to any such bonus because it will be their first experience of motor insurance. Similar to this fact, there are certain other nuances about the No-Claim Bonus that every motor insurance policyholder must know to reap all its benefits.

In the event where the insured vehicle breaks down due to a minor mechanical/electrical fault, industry experts recommend there is no hard and fast rule for filing a claim for minor repairs. It would be smart enough if you compare the cost of minor repairs and the NCB on premium, if minor claim’s cost is more than the NCB, then you can surely prefer to avail the claim otherwise prefer claim-free record in such a case. Most of the time people misunderstand NCB. They feel this bonus belongs to the vehicle rather than the policyholder, while its vice-versa.

Therefore, if you are a safe driver you can benefit from the accumulated NCB which is transferable whenever you buy a policy for a new vehicle. The NCB credits can also be transferred to a new insurer from the existing one. This bonus is offered even in case of switching from one insurer to another.

Not to forget, in order to make the best use of the NCB, it is pivotal that you renew your insurance policy on time, and do not let it lapse. Earlier, insurance companies used to charge a nominal fee from the customers to purchase the no-claim certificate.

This has also been done away and insurers must provide the certificate free of cost. The last but not the least fact worth noting is that an existing no claims discount can be applied to the policyholder’s second car as well if the main driver remains the same.

Therefore for driving carefully on the road, you not only protect yourself from accidents rather the motor insurance companies reward your effort with NCB. It is one of the best ways to decrease your car insurance premium as one can save anywhere between 20 to 50 percent of their original premium amount. So, it definitely pays to be a safe and cautious driver in the UAE.auto