What Factors Affect the Cost of Car Insurance in the UAE?

Last updated on : 27 Feb 2024
4 min read

Have you ever wondered why you're paying a different car insurance premium compared to your friend, even though you both own similar cars? In this article, we'll delve into this question and explore the various factors that significantly influence the cost of car insurance in the UAE. Join us today as we briefly discuss insurance and its types, and then dive into the key factors that impact car insurance expenses in the UAE.

Factors Affecting Car Insurance Costs in the UAE

Several factors play an important role in determining the cost of car insurance in the UAE, including:

 Car Value

The value of your car is influenced by factors like the make, model, manufacturing year, specifications, condition, and mileage. Expensive cars typically have higher repair or replacement costs in case of accidents, prompting insurance companies to charge more for coverage. You can estimate your car's value using online calculators or market price comparisons. When using Shory our clever technology will help do this for you. Keep in mind that car values may fluctuate due to changes in supply, demand, or seasonal trends. It's advisable to also search for similar cars online or in showrooms for accurate comparisons.

Car Type

The type of car directly affects insurance costs based on its characteristics and performance. Luxury and sports cars usually incur higher insurance premiums due to increased fuel consumption, expensive maintenance, and higher accident risks associated with their speed capabilities. Insurance costs also vary among different car brands, with some being more reliable and popular than others.

Vehicle Age

The age of your car impacts insurance costs. Older cars generally have lower values, resulting in lower insurance costs. However, this doesn't mean insurance for older cars is always cheap, as potential breakdowns and damages may lead to increased costs. 

Driving Record

Your driving record influences insurance costs based on the number of violations and accidents you've been involved in. Experienced and cautious drivers pose lower risks, usually leading to reduced insurance expenses. Poor driving records result in higher insurance premiums. Adhering to traffic rules and practicing safe driving habits can help maintain lower insurance costs.

Driver’s Age

Driver age plays a significant role in insurance costs, with statistics suggesting that young drivers often face higher premiums due to their higher accident rates and inexperience. However, there are ways for these groups to reduce costs, such as choosing appropriate vehicles, maintaining clean driving records, and practicing safe driving habits.

Residential Location

Your place of residence may impact your insurance costs, with higher traffic areas presenting higher risks and subsequently higher insurance premiums. Differences in insurance costs can be observed between cities or Emirates based on traffic density and accident rates.

Selecting the Right Insurance Plan for Your Car

To make an informed decision about your car insurance, consider these steps:

  • Compare Policies: Compare insurance policies from various companies in terms of services, coverage, and prices. Try Shory.com to easily compare quotes and purchase policies online at any time without document uploads.

  • Analyse Your Needs: Ensure that the chosen plan aligns with your vehicle's requirements and your driving style.

  • Choose Insurance Type: Select between comprehensive insurance or third-party insurance based on your preferences and needs.

  • Compare Companies: Evaluate different insurance companies in terms of coverage, cost, additional services, terms, and conditions.

  • Make the Right Choice: Opt for the insurance company that offers the best value and meets your specific needs and preferences.

Conclusion

The cost of car insurance in the UAE varies due to factors like car type, value, driver age, driving record, and your residential location. When purchasing insurance, consider these factors carefully to make an informed decision that aligns with your needs and circumstances.

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.