How to Estimate the Cost of Car Insurance in Dubai?
There are more than 10 different insurance companies working in Dubai offering car insurance products to the residents. The growing competition in last few years not only decreased the cost of car insurance significantly but also encouraged insurance companies to push the range of different products and offers to penetrate deep into the market.
With variation in offers, insurance companies, and coverage features, there is also a significant difference in price. If you are shopping for a car insurance that offers the best value for your money, a little insight into different factors that can affect your cost can help you negotiate the best deal with your insurance provider. Listed are few factors that can affect the cost of your car insurance premium.
The Cost of the Car
The first and the basic factor that influences the pricing is the cost of your car. For cars that cost more than three hundred thousand AED, the average insurance rate in Dubai is 2.75%. For cars that cost between 100,000 AED and 300,000 AED, the average rate is 3% while for the cars that cost less than 100,000, the average premium cost is 3.25% of the car value.
This is the basic average premium you have to pay to insurance provider but this rate is also influenced by many other factors as listed below.
The Driver’s Age
You can add up to 25% of your basic premium rate to the cost if your age is 23 and 25. Similarly, add an average of 15% in case your age is between 25 and 30. But if you are between 30 and 60 years of age, you can get a discount of 10% on average on the premium rate you are paying.
In addition, if your driver’s license is less than a year old, you are expected to pay up to 25% more of your original premium rate.
Type of Car
You can expect to pay 10% less if you own a SUV or any other 4 wheel drive but if you own a sport car, you have to pay 20% extra of your basic premium rate.
If you are buying insurance for your brand new car, you can negotiate to decrease up to 10% on your premium rate. But if you own a car that is three years old, you have to pay up to 30% extra especially if you want to include agency repair (repair from manufacturer) in the coverage.
If your car is unregistered in Dubai, you have to pay 5% more to most insurance companies.
Benefits and Additional Features
In Dubai, unlike many other countries, the car is insured under the basic policy, not the driver. If you want to cover personal accident benefit for the driver as well, you can pay an average of AED 120 one-time payment and an extra AED 30 for each additional passenger.
For a courtesy car benefit (A car provided to you by the insurer during the repair time), pay an additional of AED 150. You can also look for insurance companies that offer no-claim bonus which allows the additional discount to drivers with clean no-claim record.
For example, for a one-year no-claim certificate, you can get a discount of 5%. For a 5 year no-claim certificate, you can have an average discount of 25% but some insurance companies offer discounts up to 45%.
With the help of above information, you can not only estimate a rough cost of your car insurance in Dubai but also negotiate a better price with insurance companies.