What is my car insurance premium?
Those six words are probably said everyday by someone when they open their auto insurance renewal. It comes as a complete shock if it has increased because they have had no accidents, no traffic tickets or no claims.
Many say, it is, what it is. Well it’s not. There are consumers who are to busy to worry about it. They just let the payments come out of their bank account each month. There are others who do call, and are given that global excuse that the rates have gone up everywhere. Many consumers get angry but do not inquire any further. This is the point that you should start asking questions. Don’t ever feel intimidated or inferior when calling your broker, they will explain the legal jargon to you. It is their job.
Having had hundreds of people call me and ask me that question over the years, I probably have saved people enough money over the years to buy a car, a boat, maybe both. Here is a list of the questions you need to ask your broker.
- Do I get an age discount?
Many Insurance Companies are starting to offer age discounts at 50yrs. The rate usually starts at 5% and it increases every 5 years. When you turn 55yrs, it should increase to 10% .
- How is my policy rated?
Insurance premiums are set with many variables. One is the cost of driving to and from work. If you are not driving to work, be sure to ask about that. There are low mileage discounts are available for you.
- We only have one car, but my son lives at home and has a car
Each Company differs, however they will usually give you a multi-car discount if he is insured with them, plus he will get the same discount plus an additional multi-line discount.
- We have a home policy with you, do we get a discount for that?
Yes, discounts for insuring your home and auto together is usually about 10%.
- My husband and I are retired, is there a discount for that?
If you are retired, there is a retiree discount that you should get on top of the age discount.
- Do I have to pay a service fee to take advantage of the monthly payment plan?
Yes, the service fee is usually around 5% of the total premium. That can be a lot of money if your premium is high. There is usually an alternate pay plan which is set up 40/30/30. You would pay 40% when it is due, 30%,three months later and the remaining 30% three months after that.
- Is there any coverage we don’t need on the policy?
Yes there is optional coverage, but get your broker/agent to explain all the pros and cons before deleting anything.
- Do we have an accident protector endorsement on the policy?
Ask to make sure you do have this coverage. If not, ask them to add it to the policy. It may cost $50, but if you have an accident, without it, your rate will drop and you will pay hundreds over the years.
- We have been with this Company for many years, do we get a loyalty discount?
Yes, there usually are loyalty discounts and new business discounts if you go to another Company.
At insurancemarket.ae we work very hard to get you a better deal!