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Below we have highlighted some of the major factors that play a pivotal role in deciding car insurance premium:
The car insurance premium depends on your driving experience. A person who has a driving experience of one year might end up paying 18% more than a person who has a driving experience of two years. However, the car insurance premium will be the same for a driver with two years of experience and more. What mainly matters thereafter is the total number of years you have been driving a car without a claim (which is also known as “No Claim Bonus”). Each year you drive a car without getting involved in an accident, the price of car insurance will decrease (maximum of five years, with no additional discounts thereafter).
But remember that once you make an insurance claim, the clock resets and your car insurance premium will eventually increase. The price of your motor insurance will increase to almost the same rate as someone who has a driving experience of one year.
Well, another important factor that plays a vital role in deciding your car insurance premium is the place of registration. Where your vehicle is registered will have a huge impact on the auto insurance premium. When compared to other cities in the UAE, Dubai is the cheapest city to get car insurance and the most expensive place to buy car insurance is Abu Dhabi, where it could cost up to 25% more for a car owner to insure a vehicle. Most often, auto insurance in UAE, Dubai, Ajman, and Sharjah will be cost effective as compared to auto insurance in AI Ain, Abu Dhabi, Umm Al Quwain, and Fujairah.
It is quite obvious that car insurer would want to know about the model and type of the car. Since prime and luxurious cars are more likely to have higher car insurance premiums as their parts, services, and repairs are more expensive. Just like that new car models would also be more expensive to service & repair.
Besides the model of the car, car insurance companies also look at the type of vehicle. Sports or high-performance cars are known to be more likely to involve in an accident, making them higher risk cars. With that being said, car insurer looks at every feature of the car, from safety features to ratings and previous reviews in order to decide car insurance premium.
Some car insurance companies can lower your car insurance premium based on what purpose you use your car for, the distance you covered, and when and where you drive. Business commuters put more miles on their car, and the more you drive the car, the more are the chances to get involved in an accident. Therefore, car insurance companies offer a higher car insurance premium for the most used car.
You may be able to get a discount on your car insurance premium if you use your car much often. In addition to this, if you park your car in a secure location such as a garage, it is less likely to incur damage, which eventually lowers your car insurance premium.
Over To You!
There are several factors that car insurance companies take into account when it comes to offering you car insurance quotes. So, if you are planning to buy insurance for your car, take a look at the options that covers you as an individual, rather than a generic quote. This will eventually help you get the right insurance coverage for your vehicle.