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:

• Enter the brand name, year of manufacture, model of the car and the variant.
• Once these details are entered, your premium will be calculated automatically. It appears in the bottom-left corner of the calculator.
• 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.
• 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.

The formula to calculate own damage premium goes = (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. 

Premium rates for own damage premiums generally range around 2-3% of the total insured declared value of the car. This is why premium rates are highly affected by the change that occurs in the insured declared value of a vehicle. Depreciation causes a change in the insured declared value of the car which can be calculated using a car insurance depreciation calculator.  Further changes occur by considering the secondary elements that affect car insurance premium calculations. You skip all these hefty calculations and get your car insurance premiums calculated using the Policybazaar UAE car insurance estimator. This car insurance EMI calculator will not give you a fair premium rate but also suggest suitable plans for your car.  

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. 
• Age of the Car: Older cars get low premium rates since IDV also declines with age. This is why you are asked to mention the year in which you bought the car when using a car insurance estimator.
• Geographical Location: If you live in an accident-prone area or drive often in such a region, your insurance premium will be higher. Apart from that different emirates may have different insurance rates for the same car too. 
• Fuel Type: Most common fuel types are plausible to get the lowest premium rates in the UAE. This means petrol cars stand at the lowest end, then diesel, the CNG and then electric cars. 
• Promotional Discounts: Many insurance companies offer a promotional discount on their car insurance plans. An example of this can be discounts offered on online purchases. 
• No Claim Bonus: Your accumulated NCB has a huge impact on the premium rates. NCB calculation is used as a primary factor when calculating car insurance premiums. 
• Modifications: Added features can impact car insurance premium rates as well. Practical modifications that reduce the risk for insurance companies can lower the premium, such as anti-theft devices. Other modifications such as aesthetic modifications or performance-enhancing modifications can increase the price. 
• Driving Record: The better driver you are, the lesser risk you create for car insurance providers. Drivers with good records often get reduced premium rates while a bad driving history can jack up the prices instantly. 
• Claim History: If you make too many small and big claims, you are viewed as a high-risk customer by the insurance companies and hence increase premium rates. People with lesser claims on their record attract lower premium rates. 

How to Reduce Car Insurance Premium?

• 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 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. 
• Avoid Making Small Claims: Making even the smallest claim, except for third party claims, will not only go on your permanent record but also reduce your no claim bonus to nothing. Instead of filing claims for every small repair you get done on your car, try and save it for the big ones. Having a claim history ridden with several claims can jack up your premium while a cleaner one will bring the rates down. 
• Always Renew on Time: There is a higher chance for your premium rates to rise if you have to re-activate an expired policy or buy a new one from scratch. On top of that, you lose your no claim bonus if an expired policy is not renewed in the next 90 days. Make it a priority to renew your car insurance on time every year. 
• Shop Online: Finding special promotional discounts on car insurance plans, or any other kind of general insurance, is very rare. But this does not mean you can never get any kind of relaxation on your premium prices. Shopping for your car insurance plans online is the best way to score some discount on top of the no claim bonus. Almost all providers in the UAE offer special online shopping discounts for plans bought online. Check out the latest trend for online shopping discounts. 

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.