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Reason Behind Motor Insurance High Rates

Written by Huma

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

But there are major controlled factors that can increase or decreased motor protection rates.

UAE is continuously involved in advance development and it’s creating milestones. This is especially true in the case of motorized 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 going up and how they can get cheap yet effective auto insurance that has its own sustainability in a time of need

BuyanyInsurnace presents seven major reasons why motor insurance rates increase.

Reason#1

Extra Add-ons

No doubt having full coverage insurance on features/specs of your car can safeguard you from unfortunate events.

But sometimes there are some extra covers and adds on 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 roadside assistance or repair coverage to their visa clients. So, if you have this add on already then simply don’t put it in your motor insurance policy form while purchasing, to avoid extra charges.

Reason#2

Violation of Traffic laws:

Violating traffic rules and regulations is not only a crime but also another big reason why your auto insurance rates go up.

The insurance laws highlight two categories of traffic violation

  1. Minor violations – speeding, improper passing or backing, etc
  2. Major violations – driving under influence substance, 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 at the time of new motor insurance policies; as well as renewal. Finding bad records can let them charge a high premium on that individual due to the high risk of accidents.

Reason#3

Age Factor:

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

  1. By the law of insurance in UAE, the appropriate age of getting your car insured at cheaper rates is more than 25-year-old.
  2. The reason behind 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 but also 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.

Reason#4

Accident At-Fault:

If you are responsible for hitting the car or get into an accident with another car and claims are filed then 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 the remaining payment is paid by you
  2. At-fault coverage where the company pay your whole expense without enhancement in your premium but for that, you have to get this coverage plan by paying extra fees

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

Reason#5

Expensive Cars:

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

In other words, these cars have speeding and accidental records and in time of calculating auto premium first, the car models and manufacturing date and its features are observed. If the model is new and high tech then you should expect higher premium rates.

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

Reason#6

Car Registration Location

For many motor insurance providers, your car registration locality matters the most before they let you sign the insurance documents

The advantage of living in the UAE is sure you do get a wide alternative of car insurance that fulfills your needs.

But the real impact on your overall monthly car premium is decided upon 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 cost 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, Fujairah.

Reason#7

When you don’t compare motor Quotes

Doing 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 inexpensive auto protection policies.

  1. Visit different car insurance forums online or offline and get a comparison list of all these car insurance quotes in to
  2. Once you figure out exactly what features you want to priorities in your policy, price comparison will make much more sense to you.
  3. 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 to plan ahead.

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


Originally published Oct 20, 2019 14:00:14 PM, updated May 04, 2021

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