how-age-of-driver-affects-the-car-insurance-premium

By PolicyBazaar
  | Published: 09 June 2021

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Insurance companies in Dubai consider various factors while calculating car insurance premiums such as vehicle’s age, vehicle’s value, driver’s age, location, driving record, etc.

The driver’s age plays an important role in determining car insurance prices. You may be surprised to know that older drivers pay lower car insurance premiums in comparison to their younger counterparts. It is because the older age group is risk-averse whereas young-age drivers are prone to risky driving behaviours.

Let us understand how a driver’s age can affect car insurance premiums.

How Driver’s Age Affects the Car Insurance Prices

All the drivers aged 24 or less pay a higher premium in the UAE as they are considered to be drivers with less driving experience. The car insurance prices start dropping after the age of 25. The lowest premiums are charged for drivers aged 50 and above because of their risk-averse tendencies.

Statistically, young drivers are more involved in road accidents. This is precisely why insurance companies need to check driving records before calculating premiums. If a driver remains accident-free, follows traffic rules, and maintains a clean driving record in the initial few years, then they can get their car insurance premiums reduced subsequently.

If you are a young driver, you can get in touch with your insurance provider when you turn 25 and ask for a reduction in car insurance premiums. Most of the insurance companies in the UAE offer a rebate after 25.

How to Find Lower Car Insurance Premium Plans for Young Drivers

Here is what you can do to find an insurance plan with a lower premium if you are 25 or below.

1. Determine Your Insurance Requirements

Before you start looking for an insurance plan, you must know what you need. For example, some drivers take a comprehensive car insurance plan to cover the expenses of their own and third-party vehicle damages. Others opt for third-party car insurance only and pay for their damage repairs all by themselves.

2. Perform a Research

Once you figure out the type of insurance plan you are looking for, you can go ahead and perform some research on different insurance providers in the UAE to check what they are offering. Simple internet research will give a decent idea of what’s in store for you. If you find it confusing, you can simply log on to policybazaar.ae, enter your details and get a list of plans that are suited to your requirements.

It is important to consider all the factors that insurance providers consider while calculating car insurance prices. This is primarily to check if you meet the eligibility criteria. The next thing to look for is the claim settlement ratio of the listed insurance companies to find out how they deal with the claims.

3. Look for the Right Insurance Plan

It is advisable to opt for a comprehensive car insurance plan as it covers your and third party damages as well. The best part about comprehensive car insurance plans is that they save you from spending your savings and cover all your expenses if you meet with an accident.

4. Compare the Premiums for Different Insurance Providers

Once you have short-listed insurance plans based on features and benefits of your liking, you can go ahead comparing their prices. It is important to settle with a plan that’s per your budget.

Final Thoughts

It is important to have a clean driving history for a variety of reasons, one of them being the cost of your car insurance price. As an adage says, good behaviour never goes unrewarded, with decent on-road behaviours, you are likely to save a lot on your car insurance premiums. Insurance providers also give a no-claims bonus for the policyholders who go through the whole year without reporting any claim.

Additionally, you must stay updated about the standard car insurance prices in the market to make an informed decision every time.