Owning a car in the UAE means you have to get car insurance as the first thing! Car insurance in UAE is mandatory and you cannot ride on the roads without it. In the recent years as per the UAE Insurance Authority, car insurance costs have increased for vehicle owners. You often get confused as car insurance companies tend to quote premiums based on a variety of factors.
Do not fall into the trap of choosing an insurer who offers the lowest premium for your car. You have to compare policies and their features before you decide on a particular policy.
Ever thought how a car insurance company calculates your insurance premium?
Many factors can influence the rate of your car insurance. Some of these factors may be out of your control, but there are others you can control. Check out these factors that affect your car insurance premium.
Your age & driving experience: If your age is less than 25 years & your driver’s license is less than a year old, then your premium will be at least 15-20 per cent higher. This is related to the fact that the frequency of accidents happening are higher amongst younger age group people lacking driving experience.
History of accidents and fines: If you have been in an accident previously and any claims have been made in the past or have received a number of traffic rules violation tickets you will have to pay a higher premium. But claiming no insurance earlier can make you eligible for a no-claim bonus that is deducted off your premium.
Age and coverage of the vehicle: A new car will need a more comprehensive coverage to protect it against any mishaps and this means an increased coverage premium. Older cars can have a more affordable third-party cover.
Features and type of vehicle: Expensive luxury cars cost more if taken for repair or replacement but if the cars have sophisticated safety features insurers reduce the premium as the cars are safer to drive.
Repairs done by agencies or non-agencies: When it comes to repairs, if you want agency repairs or non-agency repairs approved by the insurance provider, it can be included in your insurance premium by paying extra. Be sure to check it out!
Additional features: You can go for additional or optional coverage like international cover, roadside assistance, etc. chargeable in your insurance premium.