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How to Calculate Car Insurance Premium Online in the UAE

Written by Ahmed Shabbir

There are many factors that compound to make up the car insurance premium you end up paying. It is no secret that car insurance in Dubai is not only mandatory but a little on the expensive side. Calculating premium, though, is not that hard.

What is Car Insurance Premium?

The car insurance premium is the amount drivers pay as their car’s insurance amount regularly. Either monthly or after 6 months depending upon the insurance policy they buy.

How to Calculate Your Car Insurance Premium

The car insurance policy prints we all have contained a lot of factors, including Terms and Conditions, Exclusion, and special cases. We all have been told an amount upfront, but we are never told how this amount is calculated!

When calculating the car insurance premium amount, the general rule is that if your car costs more than three hundred thousand AED, the insurance will be 2.75% of your car’s original value. If your car cost between 100,000 AED-300,000 AED, the insurance amount will be 3% of the car’s original value. However, if the car’s worth is less than 100,000, the insurance amount will be 3.25% of the car’s original value. 

Furthermore, the formula that is generally used to calculate the car insurance premium:

Car Insurance Premium= (IDV Premium rates + add-on rates) – (no claim bonus)

Details Required for Calculating Car Insurance Cost: 

Following are the important key factors that insurance companies consider while calculating the car insurance premium: 

  • Your Age
  • Your Experience
  • Medical History
  • Life History
  • Your Credit Score
  • Driving History Your Car’s Make and Model

What is a car insurance calculator?

A car insurance calculator is an online tool that helps you calculate the car insurance premium. It enables you to calculate the estimated cost of car insurance and better understand the insurance premium calculation. It allows you to know the actual premium on various vehicle insurance plans. You can get the awareness of different insurance plans from multiple insurance companies by just changing the information. In this way, you can get the best insurance plan for your vehicle.

All you need is to pile up the information in one place, which includes your motor details like vehicle name, model, fuel type, etc. By putting the information in the insurance portal, you can get quotes from various insurance companies.

How can you use a car insurance calculator online?

To use a car insurance calculator online, you have to follow the steps mentioned below:

Step1: Select your vehicle’s name, model, brand, and fuel type.

Step2: Select the UAE state where you have registered your vehicle.

Step3: Select the year of purchase of your vehicle.

Step4: Answer the question if you have made any claim in the previous year.

Step5: Enter your name and mobile number for contact.

Step6: Enter the OTP you have received on your mobile number to get the motor insurance premium quotes.

Step7: Make a good comparison of various insurance quotes.

Step8: Select the insurance policy that best suits your needs.

Benefits of an online car insurance calculator

Following are the benefits of an online car insurance calculator as mentioned below:

  • It will provide you with ease of time to make a good decision for the car insurance policy.
  • You can look at how changing the variables will affect the premium calculation.
  • It makes the buying process easier for you before making a buying decision.
  • It provides a good comparison of premiums to select the best car insurance plan.

Example: – How to calculate car insurance premiums for your car?

The car insurance calculation varies with different variants like there is no standard rule for the exact amount of premium to be the same for every motor car. It differs from vehicle to vehicle and situation to situation. But, the basic formula to calculate the premium is the same for every vehicle as mentioned below:

Car Insurance Premium= Own Damage Premium – (No claim benefit + Discounts) + Fixed Liability Premium

Factors affecting PremiumCar Manufacturing Year(2014)Car Insurance with no claim benefit
Car Ex showroom rate250,000
Insured Declared Value185,500
Own Damage Premium1.67%3560
No Claim benefit discount20%850
Total own damage Premium2550
Personal Accident Cover150
Legal liability paid to the driver40
Compulsory Third-party insurance900
Net Premium3640
Service Tax14%510
Total Premium4150
Car insurance premium calculation example

Note: Above mentioned example is a basic criteria to calculate insurance premium. However, it may vary from insurance company to company.

How to reduce car insurance premiums in the UAE?

Certain factors can help you reduce your car insurance premium in the UAE. But, you have to be proactive to take the maximum benefit from the elements, which helps in reducing the car insurance premium. These factors are mentioned below:

  • Renew car insurance policy on time
  • Transfer no claim benefit on renewal
  • Don’t raise small claims of your car
  • Install anti-theft device for protection
  • Don’t modify your car
  • Make an online purchase of car insurance policy

Factors determining the car insurance Premium actual Value

Certain variables determine the actual value of the car insurance premium. These factors are mentioned below:

Age: Above 25 years of age, drivers are considered more reliable, and less premium is charged.

Car model: Luxury cars like Audi will be charged with a high premium compared to Toyota Camry.

Fuel Type: If you possess a CNG-fitted motor, you might have to pay a higher premium than the petrol or a diesel car.

Car Manufacture year: An old vehicle will be charged less premium than a new car.

Place of insurance: The traffic density is another factor that affects the premium value. High traffic density areas will be charged a high premium compared to the remote areas.

Discounts: There are certain professionals like doctors, military personnel, and government employees to whom the insurance company charges less premium.

No claim Benefit: If you have not made any claim in the previous year, you can claim the no claim benefit discount that varies from 20% to 50%, depending upon the insurance company’s discretion.

Voluntary Access: You agree with the insurance company to pay a certain amount by yourself if any claim on your car arises.

Anti-theft device discount: If you have installed an anti-theft device in your vehicle, you’re entitled to almost a 2.5% discount on your insurance premium. But, it also depends upon the insurance company’s discretion.

Essential details required for car insurance premium calculation

There are specific essential details you require at the time of online car insurance premium calculation as mentioned below:

  • Car registration number and year
  • Manufacturer name
  • Fuel Type
  • Car variant 
  • RTO
  • Driving License number
  • Personal details
  • Visa number or Emirates ID

How is the premium calculation of a new car different from an old car?

When you have bought a new car in the UAE, you must get third-party insurance obligatory by law. However, suppose you go for the comprehensive policy option. In that case, it will consist of two premiums, one is a third-party premium, and the second is own damage premium that is calculated with the help of an elemental formula as mentioned below:

Own damage premium= Insured declared value * insurer premium rate + Add-ons cover – Discount

However, the insurance premium on an old vehicle is less than the new one because it possesses many deductibles and discounts, which reduces the premium for the old car.

Frequently asked questions

How to get an insurance premium from a car insurance calculator without personal information?

You can find several anonymous car insurance calculators online. To get the insurance premium, you have to put your car’s information, like vehicle manufacturer name, model, fuel type, year of purchase, etc. You can compare with multiple websites to get the best quote. But, we recommend you consult an insurance expert after getting an initial idea of the car insurance premium.

How does a car insurance calculator quickly give you premium calculations?

Car insurance calculator online like BuyAnyInsurance is programmed, and it requires the required information to give you an estimated premium calculation.

How is the basic premium calculated?

The basic premium is calculated by multiplying the basic premium factor by the standard premium. 

How is the monthly premium calculated?

The premium is the rate of the number of units you have purchased and the annual amount the customer pays. 

How is car insurance premium calculated in UAE?

The car insurance premium is calculated using the formula:

Car Insurance Premium= (IDV Premium rates + add-on rates) – (no claim bonus)

Does BuyAnyInsurance also offer a monthly car insurance calculator?

Yes, BuyAnyInsurance also offers monthly calculations of car insurance premiums online. But, it is recommended to pay annually because it will save the administrative cost and reduce your vehicle insurance premium.

Wrapping Up!

A car insurance calculator is one of the best tools online to make a prior calculation of the insurance premium on your vehicle. You can create an excellent comparison of insurance quotes given by various car insurance companies and select the insurance that best suits your condition. We recommend you to consult with BuyAnyInsurance as they possess more than 14 years of experience in the car insurance industry to give you the best advice that best suits your situation.

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    Originally published Mar 21, 2022 13:07:13 PM, updated May 10, 2024

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