Traffic Violations and Car Insurance Premiums: Are they related?

Last updated on : 19 Jul 2024
4 min read

Many drivers in the UAE believe that traffic violations directly lead to an increase in the cost of their car insurance. While traffic violations can be an indicator of poor driving habits and play a role in assessing a driver's profile, the most important factor determining insurance rates is actually the driver's accident history and previous insurance claims, not traffic violations.

Real Factors Influencing Insurance Rates

Accident History: A driver's accident history is the most crucial factor in determining insurance rates. A driver with a history of accidents is classified as higher risk, leading to higher insurance premiums.

Insurance Claims: The more claims a driver makes, the higher the insurance cost. Frequent claims reflect risky driving behaviors that increase the expenses for insurance companies.

Type of Car: Various aspects related to the car play a crucial role. The higher the car's price and its spare parts, or if it has limited safety systems or is a sports car, all of these factors raise insurance premiums due to increased maintenance or replacement costs.

Driver's Age and Experience: Young or inexperienced drivers are classified as high risk due to their potential for accidents. Therefore, they often pay higher insurance premiums.

Indirect Impact of Traffic Violations

Unsafe Driving Habits: Repeat traffic violations, especially for reckless driving, may reflect dangerous driving behaviors behind the wheel. This leads insurance companies to classify the driver as high risk.

Driving Points or License Suspension: Accumulating points due to traffic violations can lead to the suspension or revocation of a driver's license. Some insurance companies may refuse to cover drivers with suspended licenses, negatively affecting their insurance options.

Indirect Impact of Traffic Violations on Insurance

While traffic violations may not have a direct impact on insurance premiums, they can have an indirect effect.

Poor Driving Patterns: Repeat traffic violations, especially for reckless driving, may reflect dangerous driving behaviors behind the wheel. This leads insurance companies to classify the driver as high risk.

Driving Points or License Suspension: Accumulating points due to traffic violations can lead to the suspension or revocation of a driver's license. Some insurance companies may refuse to cover drivers with suspended licenses, negatively affecting their insurance options.

Tips for Reducing Car Insurance Costs in the UAE

Choose the Right Coverage

Start by evaluating your insurance requirements. If you own an older car, consider choosing third-party liability insurance instead of comprehensive car insurance. Third-party liability insurance can significantly reduce the cost of your car insurance while covering damages caused by your vehicle to others, whether individuals or property.

Safe Driving

Having a clean driving record is crucial for getting the best insurance rates. Insurance companies often offer discounts to drivers with no traffic accident history. By adhering to traffic laws and avoiding reckless driving, you can improve your chances of qualifying for a discount on insurance costs by maintaining an accident-free driving record.

Compare Insurance Prices

Compare price quotes from different insurance companies to find the prices and coverage options that suit your needs. You can easily compare car insurance quotes from top insurance companies quickly and conveniently using the Shory app, where you can compare prices and purchase instant insurance documents for your car in less than 90 seconds.

Take Advantage of No-Claim Discount

Some insurance companies offer discounts to policyholders who have not made any claims during the latest insurance period. A clean driving record can lead to a reduction in insurance costs over time.

In Conclusion

It is essential to understand the factors that truly affect car insurance premiums in the UAE. Focusing on safe driving, avoiding accidents, and minimizing insurance claims are the best ways to ensure reasonable car insurance rates.

Disclaimer: Shory aims to present accurate and up to date information, however we take no responsibility or liability for any errors or omissions in the content.