Deciding on the car for yourself is easier but determining the insurance type you need and the cost of the insurance covered is tedious. The car insurance cost in Dubai is low when compared to other countries, but let me ask you something how many of you know the reasons for your car insurance cost?
You need to know about the various factors that produced a significant impact on your car premium namely the car type, age, etc. Sort out different option you have when choosing a policy and calculate the car insurance cost as per your budget and other requirements reliably. Today we will check on the value of your car insurance and additional related information in depth.
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Car Insurance Cost – Getting Started:
There was a revision in the car insurance cost by the UAE Insurance Authorities in the name of Revised Insurance Rates, which indicated a considerable hike in the price.
Everyone might have known about the “ballpark†figure and their different types of caps (Minimum and maximum) number of car insurance caps. The real fact is that the overall rate of your premium car insurance is affected by certain other vital factors (can or cannot controlled ones).
We have listed down few details which will provide a quick look on the variables that affect your car insurance rates in UAE as well as the process of your premium calculation in a detailed way. Apart from the estimates and cost they also will help you in choosing the best price for your new brand cars.
Related: Apply for Auto Insurance in UAE
Proceed below to check out some essential factors that are being the main reasons for making your final premium car insurances.
Drivers driving experience and Age:
Everyone in Dubai knows the fact that Age plays an essential role in the calculation of premium car insurance rates. A new and expensive car need proper care and protection, and therefore it’s necessary you get Comprehensive coverage’s for your vehicle without fail.
A new car will be expensive to replace or repair when there are any damages to them. In this case getting a comprehensive coverage means you are not needed for paying anything from your pocket, this does not mean that you are asked for higher premium rates for a newly brought car as human beings tend to be more careful when they drive a new vehicle.
There is third party liability cover with minimal properties to protect your second hand or older cars, and therefore this makes your premium lighter.
Related: Car Insurance Rates by Age.
Your Car Feature and Type
Whether you have the older car or else adapted to the latest roadster, the car features and type you have chosen brings a significant role on the premium car insurance rates in UAE. Sports, Luxury or any other related expensive cars will lead to an inexorable price when you repair or replace them as they are found to be rare and have high rates for their spare parts.
The faster acceleration in new and higher performing cars can lead to severe accidents and provide a high-cost premium insurance rates. Apart from that insurance agents will take car ratings, safety features of the vehicles, models and other car specifications to calculate your premium car insurance rates.
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Deductible or Excess
The amount of money that you agree to spend from your pocket during any accidents that are caused by you is considered to be the deductible or excess part. If you are ready to pay the excess price, then your premium rates will be lower, in some cases excess means the fixed amount in whatever damage or situation.
Agency or Non-Agency Repairs
If your car dealership does the repairs then its derived as the Agency repairs whereas if an external garage mechanic does the repairs, then its referred to as the non agency repairs, this can be accredited by your insurance company. Agency repairs can be included in your existing policy or else can be added to your insurance policy, but you will be asked to pay the additional cost for them.
Other Optional Features
For other optional benefits or add-ons, you will have to add your existing policy, and you will be charged a certain fixed amount for each of the add-ons or features like the international cover, off-road cover, car hire, roadside existence, etc. You need to be very careful to consider all of the above features when picking your insurance policy from the insurers, and they may vary depending on your lifestyle.
How to Estimate your Car Insurance Costs?
Here are some of the basic formula to calculate your car insurance rates in UAE.
â— Value of your car < AED 100,000 – Base starting rate is 3.25%.
â— Value of your vehicle is less than AED 3000,000 and greater than AED 100,000 – Base starting rate is 3%.
â— Value of your car > AED 300,000 and less than a million – Base starting rate is 2.75%
Now apply a few surcharges or discounts as indicated below.
â— Age between 23 and 25 – add 25%
â— Age between 25 and 30 – add 15%
â— Age more than 30 and less than 60 – Subtract 10%
â— Drivers License less than a year old – add 25%
â— Your car is SUV or any 4 Wheel drive – Subtract 10%
â— You have a new brand car – subtract 10%
â— Your car is a sports or couple car – add 20%
â— Your vehicle is registered in the Northern Emirates or Abu Dubai instead of Dubai – add 5%
â— Do you need to get the cover for the personal accident for the driver – add AED 120
â— Do you need to get the cover for the personal accident for the Passenger – add AED 30 per person
◠Your car > 3 and five years old along with your wish to have an agency repair – add 30%
◠For Rental Car Benefit – Add AED 150.
 You are claims free and if you need to prove it then subtract
◠One year no claims certificate – 5%
◠Two years no claims certificate – 10%
◠Three years no claims certificate – 15%
◠Four years no claims certificate – 20%
◠Five years no claims certificate – 25%
