Get Right Car Insurance Quotes this 2021
Car Insurance Quotes plays a vital role in setting your monthly insurance premium and which policy is needed in your car.
It is compulsory in Dubai to get car insurance as there is a huge emphasis on proper following of traffic rules. Many people think that as car accidents are not frequent in the UAE, there is no need to get vehicles insured.
Although it is always better to get car insurance to ensure the safety of the vehicle along with the owner.
There are different needs regarding insurance that varies from person to person. This difference is also dependent on the type of car that the person owns.
There are many companies in Dubai that are working as insurance providers. These companies are providing services consisting of advanced features.
This has offered many options to the insurance seekers which at times can become confusing. On the other hand, due to many options insurance quotes can be compared.
Therefore you should be aware of how the insurance premium drives, how the cost of car insurance is estimated in Dubai, and many other related things that will help you to get better car insurance quotes. It will help you to select the right insurance plan according to your needs and budget.
In this article, we will discuss the various factors that have an effect on your car insurance price.
This article will help you to get the right car insurance quotes this 2021.
1. How is the Cost of Car Insurance Estimated in Dubai?
Let’s give you a rough idea of how the price of car insurance is estimated in Dubai.
For example, if the value of your car lies between AED 10,000 and AED 300,000, the premium of car insurance will start from 3%.
If the cost of your car is less than AED 10,000, the average rate will be 3%. The average insurance rate for cars that cost more than AED 300,000 will be 2.75%.
Thus, there are some other factors that are considered while estimating the cost of car insurance in Dubai. We have explained the applicable surcharges along with the factors below:
- If your age lies between 23-25 years, the charges would be 25%.
- If your age lies between 25-30 years, the charges would be 15%.
- If your age is more than 30 years and less than 60 years, 10% will be subtracted.
- If you have a driver’s license that is less than 1 year, the charges would be 25%.
- If you have an SUV or a four-wheeler, 10% will be subtracted.
- If you have a brand new car, 10% will be subtracted.
- For a sports car, 20% will be added.
- If you have a car that has been registered in the Northern Emirates, 5% will be added.
2. What are the factors that affect the Car Insurance Quotes in Dubai?
It is not easy to correctly determine the car insurance quotes as it is dependent on a lot of factors.
However, we have listed down some factors that you should consider while getting car insurance or renewing one.
3. The Type, Model and Year of your Car
It seems pretty evident that any insurer would want to know these specifics about the vehicle they’re insuring – but the more specific you are, the better. Prime and luxury cars are more likely to have higher premiums, given that parts, services, and repairs are more expensive, should one be involved in an accident at the fault of the driver.
Likewise, newer models, even though unlikely to have any factory faults, would also be more expensive to repair.
Insurance companies also look at the type of vehicle closely – sports or high-performance cars are known to be more likely to have accidents or be involved in them, making them higher risk cars.
Even SUVs, which are considered to be safer, family-oriented vehicles, come with a higher premium due to various aspects.
- The type of car you drive. Your rates are based in part on the claims your insurer has seen from other people who drive the same model. Sports cars often have high insurance rates, for example, because insurers are more likely to pay out large claims from speeding drivers. Insurance companies also consider factors like how much a vehicle will cost to repair and how much it’s likely to damage another car in an accident
- The trim level of your car. Vehicles with extra features like GPS systems and high-end audio can cost more to repair — and therefore more to insure — than base models of the same vehicle. Moving to a higher trim level typically raises not just the price of the car but also the insurance premium.
- The safety features of your car. Vehicles with a strong safety record and good safety equipment can cost less to insure. On the other hand, some safety features can lead to higher premiums, because high-tech safety equipment can be expensive to repair or replace after an accident.
- Your car’s chances of being stolen. If the model you drive is a favorite of car thieves, your insurance rates will reflect the added risk.
- Whether you own or lease. Insuring a leased car may cost more than insuring one you own, simply because the leasing company may insist you buy more coverage than you would have chosen. To protect their interests, leasing companies often require collision and comprehensive coverage, a low deductible, and gap insurance to pay the difference between the car’s value and the amount you owe on the lease.
4. The Emirate in which your Car is registered and where will you drive the Car
When it comes to looking for an insurance quote within the UAE, knowing where and when your car will be driven is of utmost importance to any insurance company.
This is not only because the road/traffic laws can differ between each Emirate, but also because insurers need to consider any areas that they may or may not cover on their default schemes.
For example, if you choose to buy a car in Dubai, but will be driving to Oman and back on a daily basis, you may need to get extra cover for Oman, as it is an entirely different state.
Thus this is quite common, and for all grounds to be covered, it’s better for your insurance company to know as much as possible to give you the best cover they can.
- Your job. Drivers with certain occupations pay higher rates because they’re more likely than others to file insurance claims, according to some insurers. But consumer advocates have challenged the use of occupation in setting car insurance rates.
- Your credit history. Whether you pay your bills on time can have a huge effect on your car insurance rates. In many areas, insurance companies use insurance scores, similar to credit scores and based on information in your credit report, to set prices. On average, a 40-year-old driver with poor credit, as reported to the insurer, pays almost twice as much for a full coverage policy as an equivalent driver with good credit.
- Your homeownership. Some companies give homeowners a price break on car insurance, even if you don’t buy homeowners’ coverage through the same insurer. Many offer discounts if you bundle multiple policies, such as homeowners and auto insurance, with the same company.
5. Age and Experience of the Car Driver
It is common for a lot of people to buy insurance coverage for their car and not be the primary driver of the vehicle. Whether it’s a parent insuring a new driver’s car, or a company insuring a fleet of vehicles, knowing the profile of a driver helps insurance companies determine a premium that is most relevant to the driver and the car.
In the UAE specifically, insurance companies also ask about the international driving experience of the primary driver.
This is because the country is mainly expatriate drivers from all over the world, with different driving backgrounds, laws and regulations. Some countries are considered more like the UAE driving system than others, which also has an impact on what one’s premium could be.
The origin of your driving license is also essential, given that many people obtain their permits in different places than their native countries.
- Your age. Young, inexperienced drivers are more likely than older drivers to have accidents. As a result, insurance companies generally charge higher rates for drivers younger than 25.
- Your gender. In most areas, insurers can charge different rates for male and female drivers. This often means rates for men are higher when they’re young, and rates for women are higher when they’re older. A handful of regions won’t allow insurers to differentiate by gender.
- Your marital status. Most large auto insurance companies have lower rates for married drivers than for those who are single, separated, divorced or widowed, research by the Consumer Federation of America shows.
- Your education. Drivers with college degrees generally pay less for car insurance. Insurers say highly educated people tend to file fewer claims. However, using education levels in setting prices has come under fire in recent years, and some states are moving away from allowing this practice.
6. Your Driving History
When it comes to providing a car insurance quotes for a premium, insurers consider the history of a driver to know more about who they’re insuring.
This is not to say that the more claims one has, the more negatively your overall premium is affected. But on the other side, having a no-claims certificate –a proof you have been claim-free for the past 1, 2 or 3 years plus– can positively affect your overall premium price with a discount; and your no-claims discount accumulates over time; hence, for every year you renew your policy without making a claim, the discount is higher.
Looking at the history of a driver allows insurance companies to assess the type of driver and situation they’re insuring, letting them decide on a premium that covers that driver best.
- Your driving record. If you’ve had accidents, traffic tickets or violations like a DUI, you’ll probably pay more for car insurance than a driver with a clean record. In some cases, you might need a company that specializes in insuring high-risk drivers.
- How much you drive. Low-mileage drivers often get cheaper car insurance, because less time on the road means fewer opportunities for an accident. For a full coverage policy, average rates for a 40-year-old who drives 5,000 miles a year are about 6% less than for one who drives 12,000 miles a year. Low-mileage drivers may also save by choosing pay-per-mile insurance, which tracks how many miles they drive.
- Where you park your car. Keeping your car in a garage is less risky than parking it on the street, and your insurance rates may reflect this, according to the Insurance Information Institute.
- Your years of driving experience. If you started driving at 23, you’ll probably pay more for car insurance at 25 than someone your age who’s been driving since 16. Your rates are likely to decline as you get more experience behind the wheel.
- Insurance claims you’ve made. When your insurance company pays an accident claim on your behalf, you may see higher rates at your next policy renewal. On average, drivers with a recent at-fault accident pay over 50% more for full coverage than those with a clean record. Some insurers offer accident forgiveness, promising not to raise your premiums because of an at-fault crash, but adding that feature to your policy may cost extra.
- Questions you’ve asked your insurance agent. Merely asking your insurance agent about a possible claim can affect your rates, even if you decide not to file. That might count against you when you shop for new insurance.
7. What Types of Car Insurance are available in UAE?
Let’s look at types of car insurance that are available in the UAE. These types have different quotes.
- Third-party car insurance is the minimum level of coverage required by law. In the case of an accident, it does cover the other car involved along with the passengers but it doesn’t cover the actual policyholder.
- Comprehensive insurance gives cover for both you and the third party, should an incident occur, and often covers your emergency medical expenses as well as loss of, or damage to any personal belongings in the insured vehicle. Depending on the insurance company and any additional benefits you purchase, it can also provide a replacement car while yours is being repaired and provide 24/7 roadside assistance. If you take a loan to purchase your car, the lender often insists that you have a comprehensive cover.
8. How can you lower the price of Car Insurance in the UAE?
There are some tips through which you can lower the price of car insurance in UAE. If you follow these, you can get the right car insurance quote in 2021.
- Do your research
You should always do research whether it’s your first car or you’re changing insurers.
Remember, insurers also take the driver and driver’s history into consideration, so allowing yourself to see which insurer fits your profile could save you a lot.
Today, finding out about different insurers in the region is as easy as 1, 2, and 3. All you need to do is hop on to Aqeed.com and compare quotes from various insurers in the UAE. This process will allow you to find the right premium for your car.
2. Get your car in shape
As mentioned before, insurance companies will always look at the vehicle they’re insuring – this is precautionary so that if they do need to pay out, they save money too.
Consider adding safety features to your car, be it an alarm system, tracker or more. Insurers also look at how ‘vulnerable’ a car is. This means making sure that your car is road-worthy, from the inside-out.
3. Reduce your kilometers
Insurance companies are likely to charge more if the car is seen to be a ‘higher risk’ vehicle. What does that mean?
Well, cars with higher mileage are seen to be more likely to break down or have an accident due to their high usage rate.
Thus, if you’re driving between cities during the week, avoid using that same car on the weekends, or better, try carpooling with colleagues.
The idea is to keep your car running for as long as possible while enjoying a lower insurance premium too.
4. Up the excess
Your excess (or deductible) is the amount of money you commit to paying should your insurance need to make a payout. This includes accidents, repairs, theft and more. The lower your excess, the higher the premium, because the insurance company is essentially committing to paying more. But if you choose to increase your excess, you can save more on your premium.
5. Use your no-claims discount
Many people who already have insurance policies aren’t aware of the no-claims discount (NCD), which is mostly a reward for being claim-free for a year or more. This NCD accumulates after every renewal of your policy if you are maintaining your good driving behavior.
Saving on your insurance premium is as smooth as enquiring about what you’re eligible for, given your history as a driver.
6. Consider buying in bulk
Many insurance companies provide discounts if you insure with them multiple cars. If you are an owner of more than one vehicle, take advantage of this opportunity to save on your insurance premium upfront.
You can get the right car insurance quotes this 2021 by choosing the companies wisely. You should always compare the prices offered by different companies.
Originally published Jan 24, 2021 15:51:00 PM, updated Jun 01, 2021