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Reason Behind Motor Insurance High Rates

Written by Huma

Reason Behind Motor Insurance High Rates

Motor insurance rates can increase abruptly in the UAE due to uncontrollable inflation or insurance laws.

But major controlled factors can increase or decrease motor protection rates.

UAE is continuously involved in advanced development, and it’s creating milestones. It is especially true in the case of motorised vehicles.

The automobile business is rapidly selling and supporting the purchasing power of the economy, and so does the business of insurance providers.

And because of that traffic has been enhanced by these luxurious and exotic specified cars. For the safety of drivers and citizens on the roads, the UAE government has mandated by law that a vehicle owner must have motor insurance coverage.

But the main concern of all the people is the monthly budget. If car insurance rates increase suddenly before or after purchase, it will disrupt the budget.

Hence, policyholders are constantly looking for ideas to protect their insurance rate from rising and how to get cheap yet effective auto insurance that has sustainability in a time of need.

BuyanyInsurnace presents seven major reasons why motor insurance rates increase.


Extra Add-ons

Undoubtedly, having full coverage insurance on features/specs of your car can safeguard you from unfortunate events.

But sometimes, there are some extra covers and ads that your car doesn’t need, and you already have them. Therefore, you pay more motor insurance premiums.

Be aware of these extra add-ons by doing little research. For example, many credit card companies give their visa clients roadside assistance or repair coverage. So, if you already have this add-on, don’t put it in your motor insurance policy form while purchasing to avoid extra charges.


Violation of Traffic laws:

Violating traffic rules and regulations is a crime and another big reason your auto insurance rates go up.

The insurance laws highlight two categories of the traffic violation.

  1. Minor violations – speeding, improper passing or backing, etc.
  2. Major violations – driving under the influence, felony, careless driving, etc.

Minor violations can be scrubbed from a driver’s record by paying a fine fee, but major violations can involve court proceedings, a hefty fine, and even jail time.

The insurance provider conducts background checks and investigations of every client during new motor insurance policies and renewal. Finding bad records can let them charge a high premium on that individual due to the high risk of accidents.


Age Factor:

We have discussed how your age matters most in calculating the car premium.

  1. By the law of insurance in UAE, the appropriate age for getting your car insured at cheaper rates is more than 25-year-old.
  2. This policy is to make roads safe from underage and inexperienced drivers.
  3. But that does not mean this rule implies the underage drivers only and our senior citizens who have reached the age of 70.

Insurance companies treat elderly drivers almost the same as ​​teen drivers.

Therefore, keep this in mind while buying auto insurance.


Accident At-Fault:

If you are responsible for hitting the car or getting into an accident with another car and filing claims, your premium rate is more likely to go up.

Certain options are given

to you by your insurance company

  1. Get a buffer claim which allows you a small payment by the company, and you pay the remaining payment.
  2. At-fault coverage, where the company pays your whole expense without enhancing your premium, you have to get this coverage plan by paying extra fees.

Therefore, to get away with such high rates, you have to drive safely and by the rules. A clean driving record and no claims are a surefire way to keep your premium down.


Expensive Cars:

A technologically adept, high-flying society like the UAE seeks high tech expensive cars. But in time of insurance, they have to pay more car premiums than others.

In other words, these cars have speeding and accidental records, and when calculating auto premium first, the car models, manufacturing date, and features are observed. You should expect higher premium rates if the model is new and high-tech.

Given these points, it is cheaper to insure a sedan or hatchback than a huge SUV or sports car.


Car Registration Location

Your car registration locality matters the most for many motor insurance providers before they let you sign the insurance documents.

The advantage of living in the UAE is getting a wide alternative of car insurance that fulfils your needs.

But the real impact on your overall monthly car premium depends on where your car is registered first.

  1. If your car is registered in Abu Dhabi, then start counting your money to pay more premium as it costs a driver 25% more to insure a car.  
  2. Most often, car insurance in Dubai, Sharjah, and Ajman will be lower in comparison to Abu Dhabi, Al Ain, and Fujairah.


When you don’t compare motor Quotes

Car insurance shopping can be more difficult if you don’t compare car quotes. Moreover, you are giving an open invitation to the auto insurance representatives to trap you with inexpensive auto protection policies.

  1. Visit different car insurance forums online or offline and get a comparison list of all these car insurance quotes.
  2. Once you figure out exactly what features you want to prioritize in your policy, price comparison will make much more sense to you.
  3. An insurance spokesperson simplifies the search for you by offering you quotes from multiple insurers so you can pick and choose as you see fit.

Final Thoughts:

Having first-hand knowledge about these motor insurance rates increase practices helps you plan.

You need smart evaluations and authentic websites like BuyAnyInsurance pledged to deliver real and easy content to their clients. We have partnered with renowned insurance providers in the UAE and give the best and most affordable benefits.

Related Articles:

8 Clues to Cheap Car Insurance in Dubai

Secure & Cheap car Insurance in the UAE: Secret Revealed

Calculate Car Insurance Premium Online in the UAE – BuyAnyInsurance

Originally published Oct 20, 2019 14:00:14 PM, updated Jun 07, 2024

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