All you Need to Know About Car Insurance Rates
If you are an expatriate or a UAE national who owns and drives a car in the UAE it is mandatory for you to get car insurance in order to stay on the safe side of the low. As per the guidelines of the government, every car owner should have a comprehensive car insurance plan. There are numerous providers and a plethora of options when it comes to buying car insurance plans in the UAE.
But have you ever wondered that what determines car insurance prices in Dubai? What are the factors that are detrimental in deciding the price of car insurance plans in the UAE and other emirates?
There are numerous factors that play a crucial role in determining the price of car insurance plans in the UAE. Insurance providers analyze and assess information about your vehicle along with your driving history to exactly calculate the amount of premium you need to pay in the UAE. Apart from assessing your personal information, the risk associated with issuing the policy is another important factor that plays a crucial role in determining the rate of car insurance in the UAE.
Age and Driving Experience
Age and driving experience are the first and foremost factors that come into consideration when it comes to determining the car insurance prices in Dubai. Very often, people are unaware of a common fact that if you are somebody who is less than the age of 25 with a driver’s license less than an year old you’ll have to pay approximately 20% extra in comparison to people of older age.
This is mainly because it is more likely for new drivers with less driving experience to meet an unfortunate accident leading to damage of the vehicle when compared to driver’s with more driving experience.
History of Claims, Accidents, and Penalities
Your driving history is another important factor that is vital in determining the price you’ll end up paying for your car insurance plan in Dubai. Drivers with a bad history of driving i.e. number and severity of accidents met in the past, the number of times one has violated traffic rules and guidelines, will end up paying higher premiums in comparison to drivers with a clean track record.
If you’ve met with accidents in the past and filed claims against the losses incurred it is very likely that you’ll have to higher premiums. Contrary to this if you’ve never made claims in the past you will be eligible to classify for a no claim bonus that will eventually be deducted off from your payable premium of the plan.
Details of the Vehicle
Insurance providers before issuing car insurance in the UAE, crosscheck the details of the vehicle to be insured to make sure that it falls into the right category. The age, type, and model of your car are some of the factors that will be taken into consideration when it comes to insuring your car. High-end SUVs and premium class sedan cars are more likely to have a higher premium in comparison to moderately priced hatchbacks and utility cars. The difference in the price of the premium is mainly due to the fact that the spare parts and repair cost of high-end premium vehicles is costlier which in turn increases the price of the vehicle.
Furthermore, insurance providers lay emphasis on the purpose for which the vehicle is designed. Sports cars and racing cars are more likely to meet accidents which affect the price of the premium to be paid by insurance seeker in Dubai. The age of the vehicle is also reviewed as older vehicles are more likely to malfunction after accidents which is the main reason behind the high pricing of car insurance in Dubai for older vehicles.
Most of the insurance providers have their own agencies and workshops that manage the repairing jobs of vehicles after the filing of claims by the car owner. Repairs are an inevitable component of the car insurance plans. Car owners have a choice of either getting their vehicles repaired at a non-agency recognized show followed by reimbursement of the total expenses incurred. Secondly, car owners have a choice of getting their car repaired at company recognized agency workshops that are partnered with the insurance provider. Buyers can choose the option of agency repairs by paying an additional amount along with the premium of the plan. However, one should always go through the policy papers to make sure that cost is already not covered in the plan.
There are a plethora of factors that are considered while insurance companies determine the cost of car insurance plans in the UAE. The ideal approach to analyze the price of car insurance is to look for a quote that is personalized and takes into account your personal details instead of going for a generic quote.