Safe drivers urged to insist on no-claims discounts of up to 20%

▶ Motorists who have clean records now have the right to cheaper premiums

Safe drivers must demand noclaims discounts on their car insurance, experts advise, after regulations from the UAE Insurance Authority were introduced at the start of the year.

Jonathan Rawling, chief financial officer of yallacompare. com, said the rules entitled motorists with clean records to discounts of up to 20 per cent on insurance renewal, and reflected a shift towards more sophisticated pricing.

“Many insurers do not adjust the premium at all based on your previous driving experiences, regardless of whether or not you have a no-claims certificate, which states you haven’t made a claim on your car insurance and are therefore less risky to insure,” Mr Rawling said.

“The UAE Insurance Authority has recognised the issues with this and in its latest regulation amendments has mandated that insurers give discounts for drivers who haven’t claimed on their policies and want to renew.”

The amendments, announced in December by the authority, stated that vehicle owners who had not caused or had an accident were entitled to reduced premiums ranging from 10 to 20 per cent.

Drivers with a clean record for one year should receive a 10 per cent reduction in premiums, with 15 per cent for two years and 20 per cent for three years.

“The amendments contribute to enhancing the competitiveness of the local market and encouraging insurance companies to provide the best services,” Sultan Al Mansoori, Minister of Economy and Chairman of the Insurance Authority, said in December.

Another important amendment from the authority was that insurers must provide noclaims certificates to customers free of charge.

“We are aware that some insurers are still charging for these certificates,” Mr Rawlings said. “If you encounter this, we’d point you towards the UAE Insurance Authority website to lodge a complaint.”

Benefits from the changes also include increased competition among insurers as they vie for the business of those with clean records, even adjusting their prices to accommodate no-claims discounts.

Customers welcomed the decision, saying it would encourage them to shop around for the best deal.

“I have not made a claim on my insurance for eight years, therefore I would welcome a discount for my good driving,” said Peter Philips, a British teacher from Dubai.

“In the past, the no-claims discount did not seem to reduce my premium and was of no benefit when renewing my policy. But I will be scouring for a better deal when I renew again in July.”

The authority’s amendments also mentioned discounts for coverage on motorbikes and electric vehicles, and benefits for fleet owners.

An important amendment was that insurers now have to provide free no-claims certificates