With an increase in the number of cars on the road, there is a gradual rise in number of road accidents too. This has made it necessary for car owners to invest in proper and comprehensive car insurance plans. Additionally, to own and drive a vehicle in UAE, car insurance is mandatory according to the law and non-compliance can result in hefty fines. Though car insurance is mandatory, it is in no way cheap; currently, people have experienced substantial increases in their premiums too. But now, thanks to the UAE Insurance Authority Board of Director’s decision, safe drivers can enjoy discounts on vehicle insurance in the form of no claims discount.
What does the no claims discount mean?
Basically, safe drivers who have not made any claims against their car insurance previously are entitled to this discount. The no claims discount is provided as a percentage, and the amount you are entitled to can depend upon your record as a safe driver and the number of years you have been claim-free. Safe drivers are entitled to up to 10, 15 and 20 percentage for being claim-free for 1 year, 2 years and 3 years respectively. In case you have not claimed the car insurance for more than three years you can avail the no claims discount on your car insurance for as much as 50%. The amount of discount provided is completely left at the discretion of the insurance company from whom you are buying your insurance policy.
How to get the no claims discount?
The no claims discount on car insurance can only be claimed at the time of renewal of the insurance policy. Generally, you will be automatically awarded the discount when continuing with the same insurance provider and you will be able to see the percentage you have been awarded under the no claims discount once the policy is renewed. Additionally, you can take advantage of the no claims discount even when you are planning to change insurance providers. All you have to do is get a no-claims certificate from your previous provider, which they will provide free of cost as per the existing rules.
Availing your no claims discount – Important points to note
Here are some important points to keep in mind when trying to avail the no claims discount on car insurance: –
- The discount can only be claimed at the time of renewal of the insurance policy.
- The no claims discount can also be availed in case you change your car insurance provider too. All that you need to do it is get a no-claims certificate from your previous insurer.
- The no claims discount is transferrable as it is awarded to the driver and not the vehicle. Hence, you can avail the discount when insuring a new vehicle or even when purchasing car insurance for your second car.
- Finally, the most important thing to keep in mind is that if you have made any claims in the past, even with claims as recent as the previous year, you might qualify for the no claims discount.
The No claims discount is a way for the insurance company to reward you for your good driving skills and road discipline. Therefore, make use of this opportunity and reduce your insurance expenses without affecting the extent of the coverage.