Evaluate Car Insurance Quotes for Better Car Policy
Car Insurance Quotes are like comparing apple to apple to get the best quality and of our best rates.
The evaluation of car insurnace quotes has a significant impact on your premium setting, which can be a deal setter or breaker.
When it comes to motor insurance, the competition in the market is getting tougher day by day.
Different insurance companies are competing to provide a wide range of products and offer to penetrate deeper into the market.
As the variation of products, companies, and offers exist, there is also a difference in the prices.
If you are set out to buy an insurance policy, then getting quotes from multiple insurers could help you to get a fair price for the coverage you want.
This obligated requirement is based on the number of factors involved that affect the value of these quotes.
To evaluate these quotes against one another, you need to have an insight into these factors so that you can negotiate the optimal deal with your motor insurance provider.
Some of the factors that can impact your motor insurance premium are mentioned below:
1# The Car Itself
The vehicle to be insured itself has a significant impact on the premium quoted by the insurer.
- The type, value, make, age and model of the car will affect the price you’ll have to pay to get it insured.
- There are some insurers who provide competitive pricing and products for high-value vehicles (valued over AED 400,000) as they have Private Clients unit focused just on these.
- Some insurers prefer to do more business with low-value vehicles and minimum premium segments.
- Some insurance providers prefer some models and makeover others.
- This is because according to them some models of cars have a history of being involved in accidents more than the others.
- The same logic applies to the cars that come under the category of high-performance exotic vehicles that could urge their owners to drive recklessly and more aggressively on the roads.
- In the UAE the car insurance rate ranges from 1.75% to 4% which is the percentage applied to the value of the vehicle.
Therefore, the more the value of the car, the more will be the insurance cost.
2# Convertible License:
If you already have a driving license from another country that could easily be converted to the UAE license without a driving test, then the motor insurers in UAE assume that you have an adequate driving experience and training.
Hence, they consider you a safe driver and offer discounts based on this.
3# Nationality Role In Car Insurance Quotes:
In the UAE, people of numerous nationalities reside.
The insurance companies don’t necessarily disclose this but the nationality of policyholder plays into the calculation of their premium.
The motor insurance companies view this as people with different backgrounds approach driving and training differently based on what is common in the culture they come from.
This has been proven by the stats of the accidents that insurance companies collect, some nationalities have been involved in the accidents more frequently than the others.
Therefore from which state/nation, you belong can influence your premium.
4# Age And Driving Experience:
Insurance companies charge higher premium rates to people under 30 and above 65 years old.
This is because they are considered more likely to get into an accident. The premium goes even higher for people under 25 years old.
The lack of driving experience is considered the main reason for someone being involved in an accident.
Therefore, the insurers keep the premiums higher if they consider you a liability.
Some insurance companies don’t consider the lack of driving experience in the UAE.
As the basis of charging higher premium rates if, you can prove to them that you have an adequate driving experience in your previous country of residence by providing them a copy of your driving license.
5# Claims history Can Affect Car Insurance Quotes:
If you haven’t been involved in any accidents over a certain period of time and haven’t filed for a claim then you can get No Claims Discount.
You can ask your previous insurer to provide you a No Claims Certificate on the basis of which you can save a significant amount of money while renewing your insurance policy.
Thus, some insurers even accept No Claims Certificate from your previous country of residence if you have just relocated to the UAE.
Speeding and lane swerving are the biggest causes of accidents.
Based on certain factors the
- Insurance companies have now taken into the account of number fines and tickets you have on your driving record.
- This shows how reckless of a driver you are and how risky you will be to insure.
Therefore, if you have a lot of fines on your record, some insurance companies may even refuse to insure you.
7# Additional Benefits:
Getting add-ons could increase your premium rates.
- If you are getting agency repair in the third, fourth or fifth year of vehicle registration, then you may have to pay a few thousand dirhams.
- Personal accident coverage, hire car cover and GCC countries coverage, off-road cover and roadside coverage will also have an impact on hundreds of dirhams.
Therefore, these additional benefits can give you maximum protection again major damages.
8# Previous Insurer:
Some insurance companies offer lower rates to win clients as the market is very competitive.
They may offer you a fair price compared to your previous insurer just to compete with that insurer and build their own market standing.
Thus switching to those who give maximum coverage with lower rates is not a bad option.
9# Fleet Or Multi-Car Schemes:
If your car is registered with a fleet or multi-car scheme under the single entity’s name then you may get a different rating structure.
It is not necessary that you will get lower rates with a fleet or multi-car scheme.
Hence, sometimes you may get lower car insurance quotes on an individual basis because of all the other factors that affect quotes.
10# Vehicle Specifications:
In the UAE, some vehicles are imported from the US, Europe or other Middle Eastern countries.
To get these vehicles insured is very difficult and it will be a very high motor insurance premiums.
The reason is, insurance companies are not sure if they’ll be able to get the right parts at the time of claim.
Also, many times these vehicles are brought into the UAE for repair.
Therefore, insurance companies don’t want to take risks and charge a very high price for such vehicles.
11# Use Of Vehicle:
The quotes you get on an individual basis are usually limited to your car being used for private purposes.
If the car will be used for business purposes or to provide some kind of commercial services then that must make clear to the insurer at the time of getting quotes.
After knowing the purpose for which the vehicle will be used, some insurers may go lower or higher in terms of prices.
12# Motor Insurance Broker:
Having a good insurance broker on your side could help you save a lot of money.
Insurance brokers know which insurance company will want you as a client and which insurance company will charge more money from clients like you.
Insurance brokers also have exclusive deals with insurance companies which offer them better rates than the rest of the market.
Hence, if you let your insurance broker do the shopping for quotes and then take their services at the time of claims then you may save a significant amount of money.
While evaluating car insurance quotes, don’t look at the price only, also evaluate the coverage that each company is providing.
With the help of the information provided above, you can get a rough idea of how motor insurance quotes are estimated and how much you will have to pay to get your car insured.
This can also help you to negotiate better with your insurance provider.
Originally published Nov 20, 2019 17:11:16 PM, updated May 16, 2021