Buying a car is exciting, but a very important question that most people wonder when purchasing their vehicle might be when is the best time to buy car insurance? Car insurance is mandatory in the UAE. Therefore, taking out a vehicle on the roads without insurance is illegal and leads to great penalties. Therefore, it is obvious that one must get their insurance before using their vehicle. However, there are smart ways to manage the timing of your online car insurance UAE purchase.
In this article from Lookinsure mag, we’re about to see when is actually the best time for a UAE driver to purchase their insurance, and why the timing matters.
Frequently Answered Questions
1: When is the best time to buy car insurance?
The best time to buy car insurance is during holidays, promotions, and discounts as well as before the expiration of your current insurance policy.
2: How to choose car insurance with the best rates?
Factors like age, driving history, nationality etc. affect the insurance rates of a certain policy. In order to choose car insurance with reasonable rates, you can compare quotes through Lookinsure.
3: Is online car insurance safe and profitable?
Online car insurance UAE is one of the most secure and safest ways of buying car insurance or renewing it. Plus, the process is much easier when you do it online and on a platform such as Lookinsure.
4: How to get a car insurance quote before buying the best deals?
You can get a car insurance quote through an online platform such as Lookinsure in order to get the best deals. This is due to the ability to compare quotes online.
5: Do you buy a car first or insurance?
It is best to buy your car insurance immediately after you buy your car. Make sure you have an ongoing insurance policy before you drive your car.
When Is the Best Time to Buy Car Insurance?
Timing plays a big role when it comes to buying a car and insurance. Keeping an eye out for the following factors helps you get the best deal when making your purchase.
Seasonal Trends in Car Insurance Pricing
Seasonal trends can be influenced when it comes to car insurance pricing. These costs can vary based on different factors including seasonal weather conditions as well as market demands and driving behavior.
For instance, in winter months, weather conditions lead to more accidents and collisions. In the UAE, summers are always harsher and perhaps the evilest season. Many vehicles purchase add-on coverages to their standard policies in the summer due to the very hot weather and this might affect insurance rates.
However, in seasons such as spring, rates may decrease due to the stable weather. Therefore, many insurance providers adjust their insurance rates and prices based on seasonal trends. This usually varies based on the region you reside in, since seasonal trends may differ from place to place.
Market Factors Influencing Car Insurance Prices
There are also market-related factors that always affect insurance rates. These factors lead to differences in policy prices even from the same insurer. Let’s take a look:
Driving record
Your driving record represents your skills in driving and gives your insurer a background about you as a driver. This is one of the most influencing factors when it comes to your car insurance rate. The more accidents you’ve been involved in, and the more claims you’ve made, the higher your rates will probably be.
Credit history
As always, your credit history is crucial when it comes to car insurance as well. Having a well-reputed credit history helps decrease your rates.
The type of coverage you select
The type of coverage you choose will affect the price of your insurance. The higher level of protection you choose, the higher your rates will be. Plus, in case of add-ons to your standard policy, expect higher costs.
Your car’s make and model
The type of vehicle you drive is yet another important factor that influences the costs of your insurance premiums. Luxury cars with more options, powerful engines, and higher prices tend to cost more in insurance. Cars that are categorized as vintage or classic may also cost more in premiums depending on their market value.
Age of the driver
In the United Arab Emirates, drivers under the age of 25 are considered high-risk drivers. This is because they cause more accidents in estimates, and have less experience when it comes to driving. Therefore, people under the age of 25 usually get higher rates and prices in premiums since they’re more likely to get into accidents.
Policy Coverage During Different Times of the Year
The best time to buy car insurance may be influenced by the time of the year. This means that insurers might change their insurance rates according to what time of the year it is. Let’s take a look:
Weather-related factors
In regions that are more likely influenced by severe weather such as heavy rain or snow, overwhelming heat, or thunderstorms, policyholders may opt for changes in their comprehensive plans in order to adjust to the weather changes. This might lead to changes in coverage prices.
Theft and vandalism
Certain times during the year such as holidays lead to an increase in theft or vandalism. This affects car insurance claims and insurance rates.
Discounts and promotions
Holidays also lead to offers and promotions. Most insurers have discounts on particular national holidays. Therefore, check with your insurer, and in case they do offer promotions and a holiday is near, you may be able to wait before your online car insurance UAE purchase since a discount is on the way.
Holidays are always a great time to buy insurance.
Let’s take a look at the holidays that most insurers prepare promotions on.
- National holidays
- Ramadan
- New years
- End of the summer
How to Get Car Insurance Renewal for the Best Rates
Most car insurance policies and plans in the UAE last for 12 months. Most insurers offer a one-month grace period to let you peacefully renew your insurance policy. There are factors to pay attention to in case you wish for a lower car insurance renewal cost.
Start Looking for Renewal Offers
So many insurance companies provide renewal offers to their policyholders. This means that they have lower rates for people who already participated in their plans.
This motivated policyholders to renew their previous policy and keep purchasing from the same insurer. You can check your insurer’s renewal offers on their website and on your panel. Some insurers also notify their customers about these discounts. However, it’s always safe to check.
Factors to Consider for Renewal Timing
Several factors should be taken into account when it comes to the best time to get a car insurance renewal. Let’s take a look at just a few of them:
Your policy expiration date
Make sure to keep track of your policy expiration date in order to avoid losing your coverage which may lead to fines. Most insurers notify you when your policy is expiring.
Review premium changes
Due to many factors such as the ones we mentioned earlier, insurance companies might make changes in their premium rates. Keep an eye out for the changes in your premium.
Your claims history
Your claims history always affects your insurance rates. In case you have made little to no claims, look for insurers that provide a no-claims discount policy. This helps you renew or buy your car insurance for less.
Discounts and promotions
Promotions are useful in car insurance renewal as well as buying it for the first time. Therefore, try to look for discounts and in case it is possible, manage to shop in holidays for lower rates and prices.
Benefits of Renewing Car Insurance Early
Always try to renew your car insurance policy before the due date. In case you wait for your policy to expire before renewal, it will lapse and your vehicle will have no coverage in the meantime. This is both dangerous and illegal.
In case of any damage, the company will not take care of the financial consequences and you will have to face them on your own.
Plus, if the police catch you, you will get 4 black points on your driving license as well as a 7-day impound of the vehicle as well as a fine. Therefore, it is best to renew your insurance before it expires.
Top Tips for Finding the Cheapest Car Insurance in UAE
As a driver in the UAE, you know the importance of purchasing a suitable car insurance policy. However, factors such as costs play a big role in the final decision that most people make. There are ways you can find suitable plans and policies while paying a reasonable amount.
Get Quotes from Online Platforms
Getting online car insurance in UAE is one of the best ways to get high-quality services for reasonable prices. Lookinsure is one of the platforms that helps you get a great insurance deal. You can simply compare insurance quotes online.
With Lookinsure, you don’t have to search all through the internet in order to find insurers and compare quotes. By answering a few questions about yourself such as the make and model of your vehicle and details about your driving license.
Lookinsure will eliminate all the insurers and quotes that are not suitable for you and will recommend the best policies and options. This makes it much easier for you to compare quotes and see the prices all in one place.
Discounts and Offers to Look for
It’s much easier to look for discounts online. Lookinsure allows you to search through different policies and providers while informing you about their discounts and promotions.
This is yet another factor that helps you choose the best policy. Plus, Lookinsure has a no-claims discount policy that rewards drivers who have made no claims during their previous insurance year.
Timing Purchases for Policy Discounts
The best time to buy car insurance or the best time to renew car insurance are both influenced by policy discounts. Policy discounts are also influenced by several factors such as:
Policy renewal periods
Most insurers offer discounts for renewal policies.
Seasonal discounts
As mentioned earlier, seasonal discounts affect the policy costs.
Driving habits
Less driving in certain months may be beneficial when it comes to your premium rates.
Comparing quotes
Comparing quotes helps you find insurers that provide discounts and promotions.
Conclusion
When looking for the best time to buy car insurance, it’s important to know all the big and small market tricks. Many factors influence your car insurance rates such as seasonal changes and weather-related factors, holidays, and promotions. Some factors are controllable by you which affect your insurance rates.
The most important one of these factors is renewing your car insurance early. The best time to get a car insurance renewal is before your ongoing policy expires. We highly recommend you to get your online car insurance UAE renewal as early as possible. Visit Lookinsure to compare quotes and get the best deal possible!
