Car insurance renewal coming up? If you have compared providers but found all the other companies more expensive than your current one, you might have missed an important factor: the no claims discount (NCD). Having an NCD could save you AED 1,000+ when you renew your insurance policy. To provide proof of your claim free driving history, you will need something called a no claims certificate.
What is a no claims certificate?
A no claims certificate is a letter issued by your current insurance provider showing the number of years for which no claims were filed against your policy. Minor claims, such as windshield damage, typically do not count against your no claims record. This is because windshield damage from a rock or a bird is not an indication of your safety as a driver.
Why do I need one?
For each “no claims” or “claim free” year, most insurers reduce the premium for the following year. This is because the driver is proving his or her track record of safe driving to the insurance company, making him or her less risky to insure.
If you provide an insurance company with a no claims certificate, they will automatically see you as a safe, less risky driver, which means that you get the best rates when shopping for car insurance quotes. In fact, you may even be able to bag a significant discount of up to 20-25%! So, let’s say you managed to accrue 2 years of claim-free driving. You could save up to 25% off the annual premium for comprehensive insurance. This could amount to AED 2,000 – 3,000 if you have a 2014 Toyota Land Cruiser, a popular SUV in the UAE. Insurance companies are usually happy to give significant discounts for claim-free driving because it is a way for them to acquire new customers who are proven reliable drivers.
How do I obtain a no claims certificate?
This will be issued by your current insurance provider – make sure you know what your company’s policy for issuing no claims letter is and, to be on the safe side, file your request for the no claims letter at least a week in advance of the expiry date of your car insurance policy.
Keep in mind that submitting a request for a no claims letter implies that you are shopping around for another insurance provider. If you are lucky, they might offer you a lower rate on the spot to retain your business. In the worst case, they will attempt to slow down the process for you by taking ages to issue the no claims letter, and some companies may also charge you a fee for issuing it.
Choosing a new car insurance policy may prove to be an overwhelming task, and it is always advisable to compare the quotes offered by different companies before selecting one. ServiceMarket simplifies the whole process for you – just tell us about your car and driving history and we will immediately provide you with quotes from the most competitive and reliable car insurance companies. You can even purchase your car insurance online.
Virtually the only way to beat your current provider’s rate is through an NCD. So get your no claims certificate and start shopping around!
Need more tips on how to save money on your car insurance? Be sure to read ‘6 tips to pay less for your car insurance’.