The quotes of car insurance companies in Dubai and the whole UAE can differ significantly depending on a variety of factors or variables. You can find some of the factors below. For buying used cars in UAE, visit CarSwitch.
Value of the vehicle to be insured
One of the most important factors which impact the car insurance prices in Dubai along with the remaining UAE is the value of the vehicle. All the vehicles having the market value of AED 300,000 above lie under the category bracket of 2.75% premium rate. The vehicles having the price tag ranging from AED 1,00,000 to AED 300,000 have a premium rate of 3% on the actual vehicle value. As for all 4-wheel vehicles costing below AED 1,00,000 come with a premium rate of around 3.25% on the value of the vehicle. These are the principal premium rates applicable for purchasing car insurance in Dubai and the remaining UAE.
Age of the driver
Another crucial factor which aids in setting the car insurance costs in the UAE is the age of the driver. The drivers having the ages from 23 to 24 will have the car insurance price around 25% of insurance premiums along with the initial cost. For the drivers between 25 to 30 years of age, the average car insurance price in Dubai is around 15% of auto insurance premiums along with the initial cost. Lastly, drivers between the ages of 30 to 60 can have a 10% discount on the car insurance premiums. Studies have revealed that young drivers tend to do dangerous driving which is why they get charged premiums.
Category of car insurance policy
The car insurance cost of Dubai and the remaining UAE differs depending on the category of coverage chosen. People buying third party liability gain affordable car insurance costs as compared to the ones having detailed car insurance policies.
Type of car
The kind of vehicle is another crucial factor which guarantees the cost of car insurance prices in Dubai and the remaining UAE. A standard vehicle can get you cheap car insurance because they do not require high maintenance. But the upscale vehicles or SUVs can let you buy expensive car insurance in Dubai because they demand high maintenance.
High-risk drivers
The driving history of the registered driver also impacts the cost of car insurance in Dubai. If the driver has a bad driving history containing traffic violations, accidents and varying road offenses, it is a high probability that the car insurance costs provided by the insurance companies will be greater. This is because the car insurance companies in Dubai recognize such drivers and assume they will make big insurance claims, that too very often.
Deductibles
The deductible is a determined amount which has to be paid by the registered driver out of the full insured amount for the car when the person will file a claim. For instance, if the deductible for the car insurance in Dubai or anywhere in the UAE is 10% and you happen to file a claim for AED 1000, the insurance company will only pay AED 900 to you. This is because the deductible will amount to AED 100. If the deductible percentage is high in a car insurance policy, the premium will be low and vice versa.
Applicable discounts
Different discounts are available by a few of the top car insurance companies in Dubai and everywhere in the UAE. These available discounts also have an impact on the car insurance price in Dubai. For instance, the promotional discounts by the car insurance companies on particular offers or the No Claim Bonus discounts are some famous ones ready to be availed to the customers.
History of the car
Similar to the history of the registered driver, the history of the vehicle is equally important and it holds a big effect on the prices for car insurance in Dubai and UAE. If the vehicle has suffered lesser damage and gone through lesser road accidents, the lower the cost will be. But this is only applicable on second hand cars.
Claim and insurance history
If the registered driver has made different claims in the history for other car insurance policies that he holds, the Dubai car insurance companies will view you as a potential high risk customer. Therefore, your claim history can actively boost or reduce the car insurance costs.
