How I reduced my Car Insurance Cost by almost fifty percent off in Dubai

Ugh! So, Its January and I have all these expenses. Worst time to start the year with a boat load of expenses right after the happy holidays. I need to take my car for inspection, renew car insurance and car registration. Fees. Fees. Fees.

 

I first called my existing insurer, Al Naboodah RSA. The quote was for AED 2,451/- This was already 44% cheaper than last year’s premium of AED 4,397.40/- that I paid. As you can imagine, I was super happy with the huge reduction. But then, greed set in and I thought, hey, maybe I can get even better deals from others.

Now I’m the kind of girl who buys even toilet paper online. Now there are many online platforms to compare quotes and get quick answers. Insurancemarket.ae has been incessantly irritating me during my morning drive on the radio. They claim to guarantee the lowest prices. Let me test their claim, I thought.

Inflation takes from the ignorant and gives to the well informed. Venita VanCaspel

So, to be well-informed, I also checked Souqalamal, Bayzat, Yallacompare and to be doubly certain I even called Oman Insurance directly. To say that this was an eye-opening experience is an understatement. I was totally surprised by the results.

I have a 2014 Audi, A4, 3.0 with 60,000 KM on the clock. I bought it new. I always get comprehensive insurance so that I don’t have to worry if someone else causes damage to my car and they don’t have enough insurance cover. Here’s what Al Naboodah, RSA offered me:

Benefits

RSA Agents

Vehicle Value

AED 100,000

Third Party Property Liability

AED 3,500,000

Repairs

Non agency

Emergency medical expenses

AED 5,000

Personal belongings

AED 3,500

Ambulance cover

AED 6,770

Wind Screen Damage

Covered

Optional covers

 

PAB Driver

AED 200,000

PAB Passenger

AED 200,000

Breakdown Recovery

Yes

Total

AED 2451

Excess

AED 350

1.Souqalmal

The quotes I got from souqalmal had higher or same premium and lesser value for my car at AED 96,000/-. So RSA wins against Souqalmal. By the way, I really admire the founder Ambreen Musa of souqalmal, very determined leader. All the other sites followed her lead.

Benefits

Dubai Insurance

Salama Insurance

Vehicle Value

AED 96,000

AED 96,000

Third Party Property Liability

AED 2,000,000

 

Repairs

Non agency

Non agency

Emergency medical expenses

Yes

Yes

Personal belongings

   

Ambulance cover

AED 6,770

AED 6,770

Wind Screen Damage

Yes

Yes

Optional covers

   

PAB Driver

AED 200,000

AED 200,000

PAB Passenger

AED 200,000

AED 200,000

Breakdown Recovery

Yes

Yes

Total

AED 2634

AED 2450

Excess

AED 500

AED 350

2. Bayzat

I expected to get very good deals from Bayzat as they had recently raised a fresh round of funding and thought their algorithms would be better and help me get a better deal. I was disappointed and a bit shocked as the quotes I got from Bayzat valued my car at a far lower value of AED 66,000/-. Please note that one of the quotes from Oman Insurance. You will see further down how Oman insurance fares across different platforms. Tokio Marine’s quote was very tempting at AED 1,670, but car value greatly reduced to AED 60,000 and 3rd party Liability is AED 1.5 M less than what others are offering.

Benefits

OMAN INSURANCE Co

TOKIO MARINE NICHIDO

Vehicle Value

AED 66,000

AED 60,000

Third Party Property Liability

AED 3,500,000

AED 2,000,000

Repairs

Non agency

Non agency

Emergency medical expenses

AED 5,000

AED 3,000

Personal belongings

AED 5,000

AED 2,500

Ambulance cover

AED 6,770

AED 6,770

Wind Screen Damage

AED 3,000

NA

Optional covers

 

 

PAB Driver

AED 200,000

AED 200,000, on excess

PAB Passenger

AED 200,000

AED 200,000

Breakdown Recovery

Yes

Yes

Total

 AED 2491

AED 1670

Excess

AED 350

AED 250

3.InsuranceMarket

Ah! I really don’t like their radio ads. However, they came closest to providing insurance from one provider, AXA, that was very close to the benefits that RSA was offering me. RSA was still better.

Benefits

AXA

OMAN INSURANCE Co

QATAR INSURANCE  Co

TOKIO MARINE NICHIDO

Vehicle Value

AED 100,000

AED 96,375

AED 99,000

AED 96,000

Third Party Property Liability

AED 3,500,000

AED 3,500,000

AED 3,500,000

AED 2,000,000

Repairs

Non agency

Non agency

Non agency

Non agency

Emergency medical expenses

AED 3,500

AED 5,000

AED 3,500

AED 3,500

Personal belongings

AED 4,000

AED 5,000

AED 5,000

AED 2,500

Ambulance cover

AED 6,770

AED 6,770

AED 6,770

AED 6,770

Wind Screen Damage

AED 5,000

AED 3,000

AED 3,000

none on first claim

Optional covers

 

 

 

 

PAB Driver

AED 200,000

AED  200,000

AED 200,000

AED 200,000

PAB Passenger

AED 200,000

AED 200,000

AED 200,000

AED 200,000

Breakdown Recovery

Yes

Yes

Yes

Yes

Total

AED 2478

AED 3487.05

AED 2593.50

AED 2595.60

Excess

AED 500

AED 350

AED 350

AED 250

 

4. Yallacompare

I went ahead and checked what offers do YallaCompare had in store. They were kind enough to provide me with 24 quotes. Out of 24, I selected 3 offers that valued and were at reasonable prices.

Benefits

Adamjee Insurnace

Union Insurance

Dubai Insurance

Vehicle Value

AED 100,000

AED 100,000

AED 100,000

Third Party Property Liability

AED 2,000,000

AED 3,500,000

AED 2,000,000

Repairs

Non agency

Non agency

Non agency

Emergency medical expenses

With limitations

AED 3,000

With limitations

Personal belongings

With limitations

With limitations

With limitations

Ambulance cover

AED 6,770

AED 6,770

AED 6,770

Wind Screen Damage

With limitations

AED 1,000

With limitations

Optional covers

 

 

 

PAB Driver

Not covered

AED 200,000

Not covered

PAB Passenger

Covered

Covered

Covered

Breakdown Recovery

Yes

 

Yes

Total

AED 1957

AED 2350

AED 2530

Excess

AED 700

AED 500

AED 500

 

 

5.Oman Insurance

I called Oman Insurance directly as 2 of the platforms had offers from Oman. Even Oman Insurance’s Silver policy valued my car at AED 96,000/- So, I am stumped why in Bayzat, Insurance valued my car at AED 66,000/- Oman’s direct Silver policy is AED 2,970, whereas Bayzat had the lowest rate of AED2,491. But the benefits are also not the same. Also, Oman’s direct gold policy is slightly less than that offered by InsuranceMarket.ae. So their slogan of “guaranteed lower prices” needs to taken with a spoonful of salt because we must carefully asses what you are getting for your “lowered” prices. In this case, even for the same insurer, the price was not lower with InsuranceMarket.

OMAN INSURANCE Co

 Direct

Direct

InsuranceMarket.ae

Bayzat.com

Benefits

Gold

Silver

Gold

 

Vehicle Value

AED 96,000

AED 96,000

AED 96,375

AED 66,000

Third Party Property Liability

AED 3,500,000

AED 2,000,000

AED 3,500,000

AED 3,500,000

Repairs

Non agency

Non agency

Non agency

Non agency

Emergency medical expenses

AED 5,000

Not Covered

AED 5,000

AED 5,000

Personal belongings

AED 3,000

Not Covered

AED 5,000

AED 5,000

Ambulance cover

AED 6,770

AED 6,770

AED 6,770

AED 6,770

Wind Screen Damage

AED 3,000

Not Covered

AED 3,000

AED 3,000

Optional covers

 

 

   

PAB Driver

AED 200,000

AED 200,000

AED 200,000

AED 200,000

PAB Passenger

AED 200,000

AED 200,000

AED 200,000

AED 200,001

Breakdown Recovery

Yes

Yes

Yes

Yes

Total

AED 3474

AED 2970

AED 3487.05

 AED 2491

Excess

AED 350

AED 350

AED 350

AED 350

 

What I Learned

 

  1. There were significant differences across the quotes. For third party liability that was at the range of minimum AED 2,000,000/- and maximum AED 3,500,000/ depending on premium paid. Also, Emergency medical expense was highest at AED 5,000 with Oman and all other had AED 3,500. Personal belonging cover was AED 5,000 with Oman and Qatar insurance while AXA was AED 4,000 and Tokio was AED 2,500. Windscreen waiver varied as well.

 

 

Here is a summary:

Benefits

 High

 Low

Vehicle Value

100,000

 60,000

Third Party Property Liability

3,500,000

 2,000,000

Wind Screen Damage

 No

 Yes

Total Premium

 3,488

 1,670

Excess

 500

 250

2.Always do your research. Once you have checked prices across a few platforms, you will get a pretty good idea of price ranges and benefits covered. Pick up the phone and call the insurer that is giving the best deal for you and see if you can get further discount.


3. ASK and thou shalt receive! I can’t stress enough how important it is to ask. Once I was armed with all this information, I called RSA again and got them to give me a further discount AED 193.50. I only paid AED 2,257.50/- YAY! Companies want to retain their customers. As long as you are a good customer, they willoblige your request .

4.Always ask for good driver discount. If you have had no traffic violations or tickets in the past year you can ask for an additional discount.

      5.No Claims Discount: If you have had no accidents and have not filed for any claims in the past year, you can ask for No Claims Discount. 

6. Agency Repair V Non-Agency Repair: For the past 5 years, I opted for Agency repair because my car was under warranty and if you use non-agency repairs, there is a risk of your warranty getting invalidated. Now that my car is no longer under warranty, I opted for no-agency repair and the bulk of my savings is from this one move alone. I saved about AED 1,300/- by opting for non-agency repair. It is up to you how well you take care of your car. There are very good garages and repair shops for German, American, Japanese or Korean cars. Trick is the find a trustworthy one. InshaAllah, that’s for another blog

 

So here’s what my January Car related expenses were excluding petrol.

Vehicle Inspection: AED 170/-

Insurance: AED 2,257.50/-

Car Registration: AED 400/-

Total: AED 2,827.50/-

I guess I won’t be spending much this DSF. Still, I am happy the entire cost of my car saga is still 36% less than the car insurance alone I paid last year.

Here are some links I found for Car Insurance Services and Car Repair Services.

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