Car Insurance Calculator UAE

Buying car insurance plans for your precious ride can often be a long and confusing process, even more so for someone who is buying car insurance for the first time. From conducting initial research to finalizing the plans, there is a lot to do when you are choosing a car insurance plan. That is why it is best to get a fair estimate of car insurance prices beforehand to simplify the decision-making process. This is where the car insurance premium calculator comes in handy. Let’s get to know what care insurance premiums are and how car insurance calculators work to find out potential premium rates for your car. 

What is Car Insurance Premium?

Premium is the amount that you pay to the insurance company in return for the insurance benefits. It can be considered the amount that you are obliged to pay since the insurance company is taking on the risk of insuring your car against damages. The Premium amount for any particular car is calculated based on several primary and secondary factors. This includes the make and model of the car, condition of the car, insured declared value, etc. Apart from that, you as a policyholder and driver-owner of the car can also influence premium rates. Driving history, claim history and other related factors are also considered when deciding the premium of a car insurance plan for your car. The premium amount of your car insurance plan can be easily calculated using the Policybazaar UAE car insurance estimator. 

Our car insurance calculator is an online tool that can be used to get an estimate of your car insurance premium. It uses important factors that influence the premium of a car insurance plan such as car brand, make, model, etc. Policybazaar UAE car insurance calculator is a simple and efficient online calculation tool you can use to get a fair idea of your new car insurance premium. You can follow the following steps to use the Policybazaar UAE car insurance premium calculator in the most efficient manner:

• Step1- Enter the brand name, year of manufacture, model of the car and the variant.
• Step2- Once these details are entered, your premium will be calculated automatically. It appears in the bottom-left corner of the calculator.
• Step3- If you change any details entered in the calculator, the premium is updated accordingly. You can enter different brands, variants etc. to see the fluctuation in premium.
• Step4- If you like, you can also proceed directly to view suitable car insurance plans for the car and the variant you have entered in the car insurance premium calculator. Simply click on the “view plans” button to go to our plans’ page.

Details Required for Calculating Car Insurance Cost

Given below is the complete list of details you will need to calculate your car insurance premium using the Policybazaar UAE car insurance calculator:

• Make and model of your car
• The ex-showroom price of the car
• The emirate you reside in 
• The year you bought your car
• Whether you made any claims last year 

How Can I Calculate My Car Insurance Premium?

A few factors are used in calculating the premium rates of car insurances prices in the UAE. These factors can include – insured declared value of the car, no claim bonus, and price of add-ons. Insured declared value is calculated by subtracting depreciation from the ex-showroom price of the car. IDV can be calculated using an IDV calculator as well. The Premium amount of your car insurance will have further two parts – third-party liability premium and own damage insurance premium.

Car Insurance Premium = (IDV x premium rates + add-on rates) – (no claim bonus + promotional discounts).

The resulting amount is then added with the base price of third-party liability premium to get the final premium amount of your insurance plan. You do not need a third-party car insurance premium calculator here the price is generally fixed and added to the formula automatically. 

Factor Affecting Car Insurance Premium

Age and Gender of the Driver:

Older drivers with more hands-on experience get lower premium rates since they are at a lesser risk of being in an accident. Younger drivers aged 18-30 often get higher premium rates due to a lack of experience. If the trend shows that male drivers cause more accidents, the premium rates will go higher for them and the same applies to women drivers as well. 

Insured Declared Value:

Cars with higher insurance declared value get higher premium rates. IDV can be calculated by subtracting depreciation from the showroom price of the car. This is why new cars have higher premium rates as compared to old cars. 

Condition of the Car:

Cars that are kept in good condition attract lower car insurance prices since they are less prone to breakdown. A car that is new but in bad condition will get higher premium rates. This is determined by a small inspection at the time of renewal. 

How to Reduce Car Insurance Premium in UAE?

Maintain a Good Driving Record: As explained before, a good driving record will earn you significant discounts on your car insurance premium. 

File Lesser Claims: Avoid filing small claims that can be handled on your own. Instead, save your claims and try to accumulate no claim bonus to get higher discounts on car insurance premium rates. 

Avoid Unnecessary Modifications: Aesthetic and performance-enhancing modifications generally increase the premium rates. Modifications increase the maintenance and repair cost of the car which is why the premium goes higher. Some insurance companies do not insure cars with too many modifications. If you like, stick to practical modifications such as anti-theft devices. 

Take Higher Deductibles: Deductible is the amount you, the policyholder, is liable to pay out of the total claim amount. A higher deductible amount reduces liability for insurance providers. This is why premium rates come down when deductibles are higher in a car insurance plan. 

Accumulate No Claim Bonus: If accumulated ideally, no claim bonus can help reduce your car insurance premium up to 50% in most cases. In some special scenarios, this percentage can even go up to 60-65%. The best way to have your car insurance(تأمين السيارات) premium reduced is by accumulating your no claim bonus and transferring it to the next you buy every time. The car insurance premium calculator also considers NCB when calculating your base premium. So, always keep a track of your NCB. 

Car Insurance Renewal Premium

Chances are that your premium rates will remain the same for at least the next three years after buying the car initially. But after that, there can be a change in the premium rates depending on depreciation of the car, condition of the car, insured declared value etc. You can use a car insurance premium calculator to get a fair idea of the changed premium prices. Car insurance premiums for older cars may decrease since the IDV is lower. But it’s best to not choose your insurance plan solely based on premium rates. Consider the extent of coverage you need and then choose the best possible option which is also cost-effective