The Premiums of Car Insurance Fall by an Average Dh169

The Premiums of Car Insurance Fall by an Average Dh169
Average Rating / 5 ( reviews)
75 Views

You are required to have car insurance before plying your car on the roads of the UAE. This not only safeguards your most favorite possession in case of an accident but financially helps you in the situation of any third-party (property or person) damage by your car during an accident. There are two types of car insurance policies available in the UAE:

  • Third-Party Insurance: Under this plan, only the other vehicles and passengers are covered against loss or damage. You do not get any cover against damage of your own car in any mishap, and this is the reason, the premiums of third-party insurance are significantly low.
  • Comprehensive Insurance: With cover for another car, this type of insurance policy provides protection to your own car in case of an accident. Since a comprehensive cover provides broad coverage, thus its premium is comparatively higher than a third-party insurance plan.   

Therefore, it entirely depends upon you, which type of insurance plan you want for your car, but the good news is the premiums of the car insurance policies in UAE have reduced by an average of Dh169 in the initial six months of the year 2018. This reduction has affected the most insured car brands of the country as compared to last year.

According to reports – Honda, Ford, Nissan, Mitsubishi, and Toyota are some of the top insured car brands of the UAE.

Some studies show that drivers of Ford cars have experienced a major drop in the premiums of their car's insurance policies. The average drop that Ford drivers have seen this year is around Dh216 on their car insurance premium. The below table shows an average drop in the premiums of the car insurance of the top five brands of the UAE:  

Car Insurance Premiums

Car Brand

Average Gross Premium in 2017 (Dh)

Average Gross Premium in 2018 (Dh)

The difference in Premium (Dh)

Honda

1,826

1,691

-135

Ford

2,381

2,165

-216

Mitsubishi

2,009

1,885

-124

Toyota

2,233

2,046

-187

Nissan

2,166

1,983

-183


These studies have also found that approximately 76% of the users of the insurance policies have opted for comprehensive car insurance plans instead of third-party insurance. 

The studies have also revealed that the highest number of insurance claims is made during the summers wherein 142 claims were made till August as compared to those that are made in December.

It is observed that the peak in claims is majorly driven by the car purchase cycles because the car insurance renewal cycles in the UAE are 13 months from the first registration of your car. A significant rise in the car purchase is seen near the end of summers of every year or right before the start of the schools. This is because of most of the new residents of the college purchase cars. The fall in car purchase is seen in December as people do not want to buy a car before the holidays of December. Moreover, people want to purchase a car when they plan to use it and which is generally when they come back from the holidays.

These studies also show that the clients under the age of 30 years and above 60 years have submitted the highest number of claims. However, those who come in the age group of 51 years to 60 years have submitted the lowest number of car insurance claims.

Final Words:

This drop in insurance premiums will definitely improve the sale of cars in UAE and resultantly will improve the purchase of insurance policies. In this way, this decision will not only be beneficial for the car insurance holders but car manufacturers as well.         

How helpful was this page?

You May Like