What are the typical costs of car insurance?

There are many factors that affect the cost of Car Insurance, aside from the type of insurance itself. Factors related to the car itself like the value and age, and others relating to the driver, such as whether they are newly licensed or how old he/she is. Of equal influence are the additional benefits and covers you may choose to include.

First: The Car Type and Value

We’re sure you’d agree it wouldn’t make sense to ask for the same premiums to insure a Rolls Royce Phantom and a Toyota Camry, but how is that actually evaluated?

In the UAE Insurers typically use bandings for vehicle values: for example cars that cost below 100k Dirhams will attract one rate whilst cars that are priced between 100K and 300K dirhams will have a different rate. Cars that are priced over 300K dirhams have an insurance category all of their own as high value/premium vehicles! You can certainly expect to pay a significantly higher premium if your car is a sport or supercar given the higher repair costs an Insurer would be liable for if you have a valid claim.

Another point to consider is if your car is brand new you might be required to take out an agency repair basis for your insurance as a term and condition of your manufacturer’s warranty. Typically the costs of agency repairs are higher so this too will have an impact on your premium but it is advised in order to avoid payments outside of warranty.

Second: The Driver-related Factors

If you are a young driver, or someone who has held a license for less than 5 years, you will probably have to pay a higher premium than older more experienced drivers. The good news is that if you stay alert and avoid accidents, you can expect to see premium reductions as each year passes so getting older and wiser has its benefits!

Rest assured that buying insurance is a much smoother process than having a pen, paper, and calculator on hand. Now, all it takes is a visit to an insurance comparison website to get a dedicated personal shopper that will go above and beyond to offer you the top 3 options for you. Why go through the process alone? Visit InsuranceMarket.ae and find out what hassle-free insurance purchasing is like!

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.