{"id":4237,"date":"2020-11-11T13:04:00","date_gmt":"2020-11-11T09:04:00","guid":{"rendered":"https:\/\/www.buyanyinsurance.com\/blog\/?p=4237"},"modified":"2024-06-05T16:20:18","modified_gmt":"2024-06-05T12:20:18","slug":"are-you-paying-more-motor-premium","status":"publish","type":"post","link":"https:\/\/www.buyanyinsurance.ae\/blog\/en\/are-you-paying-more-motor-premium\/","title":{"rendered":"Motor Premium Calculation – Factors and Criteria"},"content":{"rendered":"\n

Motor Premium calculation requires certain factors and criteria. Each factor analysis define the car-owner real premium.<\/p><\/blockquote>\n\n\n\n

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The price paid for getting motor insurance is one of the major factors that influence the decision.<\/p>\n\n\n\n

Traffic violation and driving mistakes had enforced the UAE government <\/a>to make motor insurance as a mandatory condition for anyone who has any sort of auto vehicle. <\/p>\n\n\n\n

One might wonder why their insurance premium is higher than their friends’, and it is a valid question.<\/p>\n\n\n\n

Many people don\u2019t know that their motor insurance premium<\/a> is based on different determinants.<\/p>\n\n\n\n

Some of these cannot be controlled, and some can be.<\/p>\n\n\n\n

But on the other hand, some factors that contribute to your premium are those that you can easily get control of.<\/p>\n\n\n\n

By keeping those factors under control you can keep the price of your policy from going up<\/a>. <\/p>\n\n\n\n

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Pay Cheap Motor Premium<\/strong><\/a><\/div>\n<\/div>\n\n\n\n
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Motor Premium FAQ\u2019s<\/h2>\n\n\n\n

What does premium mean in a vehicle?<\/strong><\/h3>\n\n\n\n

It is just another word for the car insurance bill. It is basically the bill that you pay every month to keep the validity of your car insurance.<\/p>\n\n\n\n

What are the different types of premium?<\/strong><\/h3>\n\n\n\n

There are four different types of premium including lump sum, monthly, quarterly and semi-annually.<\/p>\n\n\n\n

How much motorcycle license in Dubai? <\/strong><\/h3>\n\n\n\n

The amount for the motorcycle varies in Dubai. The cost depends upon the amount you pay to the driving school you are registered with. <\/p>\n\n\n\n

Below some factors are listed that affect the rate of your motor insurance:<\/p>\n\n\n\n

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Factors Impact On Motor Premium<\/h2>\n\n\n\n

1. Not so great driving record<\/h3>\n\n\n\n

If you have a history of being in accidents and receiving tickets because of traffic laws violations, you’ll most likely have to pay a higher premium.<\/p>\n\n\n\n

A poor driving record depicts that you are an unsafe driver, and insurance companies consider it a liability to the company.<\/p>\n\n\n\n

Motor insurance companies analyze the driver’s record and predict if the risk of the car being damaged is higher or not.<\/p>\n\n\n\n

Therefore, if the driver does not have a stellar driving record, the chances of their insurance premium being high are greater.<\/p>\n\n\n\n

2. Insurance companies consider demographics<\/h3>\n\n\n\n

Not many people know this, but the driver’s age, marital status, and gender affect their car insurance rate.<\/p>\n\n\n\n

Insurance companies have formulas that they use to calculate the premium a person will pay based on their demographics and driving experience.<\/p>\n\n\n\n

The insurers believe that if the driver is under 25 years old, single and has a less than a year old license.<\/p>\n\n\n\n

Then the chances of them getting involved in an accident are much greater.<\/p>\n\n\n\n

Thus based on demographics, insurance companies consider the historical statistical data of accidents and then factor that into the motor premium they charge.<\/p>\n\n\n\n

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Pay Cheap Motor Premium<\/strong><\/a><\/div>\n<\/div>\n\n\n\n
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3. Policy type that you opt for<\/h3>\n\n\n\n

If you don’t select your insurance policy carefully and don’t understand its terms and conditions, you might unnecessarily pay more for your motor insurance.<\/p>\n\n\n\n

For instance, if you go for a plan with zero deductible, the premium will be higher.<\/p>\n\n\n\n

Whereas, if you go for a policy with a 20 per cent deductible, the premium will be much lower.<\/p>\n\n\n\n

You need to consider all your car insurance policy provisions and then try to eliminate the ones you probably don’t need.<\/p>\n\n\n\n

Some of the provisions could be repetitive, or you might be getting the same benefits from somewhere else.<\/p>\n\n\n\n

For example, if your car dealer is already covering you with a roadside assistance plan, then don’t add that to your car insurance policy.<\/p>\n\n\n\n

Similarly, if you already have a personal accident insurance policy, then don’t pay twice for it and skip it from your motor insurance policy.<\/p>\n\n\n\n

The add-ons you choose also impact your premium rates, so select them very wisely.<\/p>\n\n\n\n

Hence, if you don’t travel across the borders of the UAE or don’t plan on going on an off-road tour, then don’t include such features.<\/p>\n\n\n\n

4. Safety of the car<\/h3>\n\n\n\n

Historical data averages show that high-performance muscle cars are more likely to cause accidents.<\/p>\n\n\n\n

This is why luxury and high-speed cars have more motor insurance premiums than standard cars.<\/p>\n\n\n\n

Luxury and pricy cars cost a lot more when it comes to repairing or replacing parts as their spare parts are usually very expensive.<\/p>\n\n\n\n

It will spike up the premium as the modifications may compromise the car’s safety.<\/p>\n\n\n\n

Even if your motor insurance policy provides the coverage for the modifications, the premium rate will still go up as modified parts cost a lot more to insure.<\/p>\n\n\n\n

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Pay Cheap Motor Premium<\/strong><\/a><\/div>\n<\/div>\n\n\n\n
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5. Frequency of claims<\/h3>\n\n\n\n

One needs to keep the frequency of their claims in check.<\/p>\n\n\n\n

  1. If you file for claims often then you will lose your no-claims bonus <\/li>
  2. And you will also have to pay a greater premium upon renewal. <\/li>
  3. It is better to pay for small damage repairs rather than filing a claim for it. <\/li>
  4. It acts as a buffer or shield against big financial losses. <\/li><\/ol>\n\n\n\n

    One might ask then, what is the purpose of having motor insurance if we have to pay for damages and repairs our self? <\/p>\n\n\n\n

    The answer is simple that your motor insurance act as a safety net in situations where the cost of damage repair is way too much.<\/p>\n\n\n\n

    Therefore, if you didn\u2019t file any claims recently, then your next car insurance premium will be low.<\/p>\n\n\n\n

    6. Compare quotes before purchasing<\/h3>\n\n\n\n

    Knowing your options and evaluating all the alternatives available is really important when it comes to purchasing motor insurance. <\/p>\n\n\n\n

    Skipping this step and just buy the first policy you came across then you can miss out a more suitable policy for our car.<\/p>\n\n\n\n

    1. Getting multiple quotes from different insurance providers <\/li>
    2. And then comparing them will help you in making an informed decision. <\/li>
    3. Once you start comparing different quotes, you\u2019ll realize that there is a significant difference in prices of plans<\/li><\/ol>\n\n\n\n

      This analysis of alternatives may also help you to figure out that if you switch to another motor insurance.<\/p>\n\n\n\n

      Hence you could save a notable amount of money. <\/p>\n\n\n\n

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      Pay Cheap Motor Premium<\/strong><\/a><\/div>\n<\/div>\n\n\n\n
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      Conclusion:<\/h2>\n\n\n\n

      To sum it up, don’t compare the premium that you are paying to that of your friends.<\/p>\n\n\n\n

      The insurance companies use different formulas to calculate their premiums, and different factors contribute to that calculation.<\/p>\n\n\n\n

      So, don’t be surprised if you hear that different companies are charging different premiums for the same type of plan.<\/p>\n\n\n\n

      Some of the factors that contribute to your premium are those that you can easily get control of.<\/p>\n\n\n\n

      By keeping those factors under control, you can keep the price of your policy from going up.<\/p>\n\n\n\n

      Making modifications to your car that do not compromise its safety, knowing the right add-ons, and skipping the redundant coverage services are factors you can easily manage, lowering your motor premium.<\/p>\n\n\n\n

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      Related Articles:<\/h2>\n\n\n\n

      A to Z Guide: Everything you need to know about driving a car in Dubai<\/a><\/p>\n\n\n\n

      Calculate Car Insurance Premium Online in the UAE \u2013 BuyAnyInsurance<\/a><\/p>\n\n\n\n

      Understanding Your Car Insurance Deductibles<\/a><\/p>\n\n\n\n

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      Contact Us:<\/strong><\/p>\n\n\n\n

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