What Factors Affect Car Insurance Rates in the UAE?

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*Above mentioned prices are for Honda City EX 1.5L, 2017 model.
*Above mentioned prices are for Honda City EX 1.5L, 2017 model.
Insurance companies leave no stone unturned to secure information about your driving history including your car to decide on the amount that you have to pay for your car insurance in Dubai. There is no point denying that the type of coverage you select be it comprehensive or third-party is one of the many factors that contribute to determining the car insurance rates. The other factors that one must also take into account are:
  • What is the valuation of your car
  • What year was the car manufactured?
  • Which car do you have?
  • What is the place of registration?
  • What is the make and model of your car?

Different Car Types with Different Features 

It is often the case that customers who search for car insurance online fail to take core points into consideration such as the coverage cost for high-maintenance cars is on the higher side should the need arise. The cost of repair for luxury cars has skyrocketed due to the expensive car parts. Whereas, some cars cost less to insure owing to their market value. In addition to that, some other factors also come into play as given below:

  • Understanding the purpose, whether the car is for personal or public use.
  • Considering the fact that the car has either been imported or not.
  • Whether the card is equipped with GCC specifications or specially modified.
  • No claims certificate is yet another indispensable requirement for rate calculation.
  • The type of coverage selected by the customer.
  • The type of add-on covers preferred by the customer.
  • Depending on the excess insurance and deductibles.

Insurance for Risk-Prone Drivers

Distracted and risk-prone drivers are usually the ones with inadequate driving experience and a proven track record of accidents and fines in plenty. Customers who are on the lookout for car insurance in dubai should understand that poor driving record would amount to higher rates of a premium than usual. Sometimes, most insurers refuse to renew a policy if the risk exposure is greater than the limits.

Cost-Effective Insurance for Young Drivers

It goes without saying that a young driver is considered riskier to insure when purchasing car insurance in Dubai. The less skilled drivers are assumed to be more careless and reckless when it comes to deft driving and more often than not insurers take due consideration of this fact. Therefore, an insurer would cost more to a new driver than the skilled one. However, it won’t be wrong to say that drivers can still get cost-effective insurance by going for these options:

You can consider polishing your driving skills in a second-hand car, or for that matter, a value-for-money car that not only comes easy on the pocket but also cost less to insure. As a thumb rule, understand that expensive cars always cost more to insure, so considering this factor, you can save a lot on your premium. That being said, finding the right car insurance online is much easier than you think nowadays. You can take your pick from a plethora of options that can help you narrow down your preference and find the right insurance policy for your needs.

Set Your Priorities Straight

Prioritizing which covers are good to have will go a long way. If you have just started out driving, ensure that you opt for maximum liability protection cover until you gain great prowess behind the wheel. However, this does not imply that you ought to get every single cover present in the market. For example, a student who uses his/her car to travel to and fro school might not find Oman coverage that intriguing.

It certainly goes without saying that maintaining a clean driving record will come in handy regardless of choosing any car insurance online. Whatever your age, your driving record should not reflect any black marks come what may. Always bear in mind that a responsible driver who never takes any claims nor violates traffic laws will get a better insurance deal during renewal.

Lowering the Cost Of Auto Insurance

We cannot rule out the possibility that some factors can go beyond our control and might influence the price of car insurance policy. However, there is no dearth of options that can help you lower down the cost over time. To make the point clear, we have listed below some points:

  • Responsibility: The onus lies on you, to drive safely without violating traffic laws. A responsible driver will not bypass traffic laws and is admired by the insurers, considering the low- risk involved with such a person.
  • Ignore The Add-Ons Which Are Not Relevant: Ticking off every possible add-on cover for your car insurance might not be a good idea considering that insurance costs exponentially increase with the add-on you choose. It doesn’t matter if you buy car insurance online or not, if the add-on benefits are not relevant to your needs, you are better off without them.

Over to You

With these aforementioned points, you can easily decide what factors affect the cost of car insurance and whatnot. Getting car insurance in Dubai is not as tricky as it can be if you have clarity about what you want in your policy. These days, insurers also offer promotional discounts in addition to your policy. After contemplating your priorities you can compile a list of discounts that are useful and ask the insurer if these discounts apply to the policy. One of the most commonly availed discounts is a no claims discount, which entirely depends on your tendency of taking claims and a no claims certificate.

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