Factors You Never Knew About That Affect Your Car Insurance Premium in the UAE
by Abdul Aziz Mondal Insurance Published on: 14 July 2017 Last Updated on: 24 September 2024
Similar to insurance companies all over the world, Car Insurance premium companies in the UAE also consider aspects like the cost of the model, the annual mileage, and the age and profile of the driver to arrive at the premium they will charge the customer. However, there are some other factors that you may not be readily aware of but can significantly affect the premium amount. Some insights:
The Country That Issued Your First Driving License
Many insurance companies in the UAE take into account the country from where the customer’s first driving license was issued for calculating the insurance premium payable. If your first license had been issued from any western nation, it is quite likely that you will get a lower premium. According to random samples, the insurance premium could be 5-40% more expensive for other countries; on average, it could be around 20% across different insurance companies. You could be paying as much as 65% more if your first license had been issued in a country like Iran, Egypt, or India.
The Place Where the Car Is Registered
The place where your car is registered has a huge impact on the applicable insurance premium. The insurance premium is the lowest in Dubai and the highest in Abu Dhabi, where it may be around 25% more for the same car. Places like Ajman and Sharjah lie between the two extremes.
Gender of the Driver
In most countries, female drivers get a lower rate as they are supposed to be less aggressive in their driving techniques and practice safer driving. However, UAE insurance companies do not differentiate as far as gender is concerned.
Experience
The extent of driving experience matters a lot in the insurance premium that you will be quoted. For example, a driver with a couple of years of experience will typically get 18% less than someone with just one year of driving experience. However, there are no further reductions for those with more than two years’ experience. Car insurance UAE companies tend to be more interested in the number of years that you have clocked up without making a claim and will give you a discount that you can accumulate for up to five years. However, whenever you make a claim, all the accumulated bonuses will get wiped off, and you will again get a renewal rate that is the same as that for a new driver.
The Car insurance premium that you finally pay not only depends on the model of the car and the factors discussed above but also on what type of insurance you take out. The cost of a third-party insurance premium is the least but you get the bare minimum cover that is mandatory. Even with a comprehensive policy that protects your car from claims by third parties, own damage as well as damage from fire and theft, you have the option of adding a number of features that afford extra benefits. These range from the rental of a replacement vehicle, roadside assistance, personal accident cover, and extension of geographical coverage.
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