How to Estimate the Cost of Car Insurance in UAE?
Purchasing a car in the UAE means that you are bounded to purchase car insurance policy as per UAE traffic laws. There are lots of insurance providing companies dominating the market with intimidating offers and policy coverage to attract customers.
The competition among the insurance providers is expanded, causing the decrease in the cost of insurance policies. Still this area is quite complicated for new car owners.
Estimating the cost of car insurance policy in UAE depends upon various factors. Obviously, every driver wants to purchase the policy that provides maximum coverage at budget-friendly rates. For that, you first need to understand the car insurance requirements and your budget. Every premium is different based on things like driver’s age, driving experience, the type of car etc.
Insurance TopUp always finds the competing auto insurance rates which fulfil our customer’s needs. We match you with the best car insurance rates in UAE. You can trust us with your time and money as we are partnered with the popular car insurance providers in UAE. To get free insurance quotes, contact us at +971-56-5543022.
The Basic Formula:
We are giving you a basic formula to calculate the insurance price for car in Dubai. It may vary from companies to companies but it gives you a rough idea to estimate the cost.
Cost of your car
While estimating the UAE car insurance rates, the first and foremost factor is the cost of your car.
- For car that costs less than AED 100,000, the starting rate is 3.25%.
- For car that costs between AED 100,000 and 300,000, the average rate is 3%.
- For car that costs more than AED 300,000, the average rate is 2.75%.
The driver’s age plays a crucial role while calculating motor insurance rates in UAE. The driver gets more benefits if he is experienced. He has to pay more if his license is less than a year old. You can follow the chart given below to find out the cost of your car insurance premium.
- If your age is between 23 and 25, add 25% of your basic premium rate to the cost.
- If your age is between 25 and 30, add 15%
- If your age is between 30 and 60, add discount of 10% on average on premium rate.
- If your car is not registered in Dubai, you have to pay 5% more to the insurance companies.
- A poor driving history results in increased cost.
Type of car
As mentioned above, one of the influential factors while estimating the price of car insurance in UAE is the type of car. An expensive car costs pretty high to insure it.
- If you own a 4-wheel-drive or SUV, deduct 10% less of your premium rate.
- Having sports car means you are expected to pay an extra 20% of your premium rate.
- For a brand new car, deduct 10% on your premium rate.
Whether you are opting for comprehensive insurance or third party liability, every policy provides different coverage at different rates. For a complete coverage, the policy costs you higher. No-claim bonus reduces expenses during car insurance renewal.
This information helps you to find out the cost which you have to bear while purchasing suitable insurance policy for your vehicle.