Looking to buy a car in Dubai? You can’t just consider the cost of buying the vehicle. You also need to think about the insurance costs. By considering both of them together, you can stay within budget. It might even help you save money.
The cost of car insurance in the UAE had been increasing in recent years until a small dip in 2019. This decrease in insurance cost was welcomed by many but insurance costs are still relatively high compared to other places. Getting around in the region is also still the most convenient by car. If you have a family, having a car becomes especially crucial. But you can find affordable car insurance and stay in budget if you do a bit of research. The first thing to keep in mind is how to estimate your car insurance cost.
How is car insurance cost determined?
Estimated the cost of car insurance in Dubai starts by figuring out the different elements that impact your car insurance. There are a few moving factors that are part of determining your premiums.
The value and type of your car
It all starts with the value of your car. Currently, the figures look like this:
- Car value is less than AED 100,000 – insurance base rate is 2.5%
- Car value over AED 100,000 – insurance base rate is 2.35%
- Car value over AED 300,000 but less than AED 1,000,000 – insurance base rate 2.2%
In addition, your car’s type also plays a role in determining your car insurance premiums. For example, if your car is a coupe or sports car, you’d have to add 20% to your car insurance. There are also minimum premiums for saloons and SUVs.
Your car insurance will also have additional costs if your car is between 3 to 5 years old. You can also include beneficial additional benefits, such as repair cover which will add to the cost.
Your age and driving history
You are another major factor in estimating your car insurance cost. If you are a young driver and have only recently gained your license, you need to be prepared to pay more for your insurance. The following surcharges apply to your car insurance:
- When you are between 23 to 25 you need to add 25% to your car insurance.
- When you are between 25 to 30 you must add 15% to your car insurance.
- When you are between 30 to 60 you can deduct 10% of your car insurance.
Additionally, if you’ve held a UAE driver’s license for less than a year, then you add another 25% to your car insurance cost. This also applies to any foreign driver’s license you might hold.
It is also worth noting that your car insurance will only list you as a designated driver under the policy. If you want to have other people (such as family members) under the same car, you can include them in your insurance. This can be beneficial and help you out if you need to make a claim.
Get a proper estimate online
The above figures are just an estimation of the cost of car insurance. As you can see, a lot of it depends on your circumstances and therefore, it’s impossible to give out exact and accurate estimates. Your best bet is to look at quotes from car insurers. The good news is that you can do so easily on the internet. Online car insurance is the best way to see in minutes how much you might be paying with a specific provider. Remember that comparing different insurance options is a good idea!
Things to know when buying car insurance in Dubai
When you start looking for car insurance online, you should be aware of few things. There are currently different types of car insurance available. The most common options include:
- Third Party Liability Insurance – offers the minimum protection and only protects you against claims from third parties who may have been damaged by your car (injury and damage to the car).
- Third Party Liability Insurance with Theft and Fire Coverage – similar to above but with additional protection against theft or fire damages to your car.
- Basic Comprehensive Policy – will cover your car and you against third party claims but also if you or your car gets damaged.
- Comprehensive Policy – Similar to the above but has to added benefit of protecting you from damages caused to a third party vehicles and damages made to your car as well.
- Premium Comprehensive Policy – similar to the above but adds certain additional features that aren’t included in the above plans.
It’s a good idea to consider getting the Comprehensive Policy. It has the most coverage and thus, provides the best value for money. If you are operating on a tight budget, you could consider a Basic Comprehensive Policy or Third Party Liability Insurance.
Keep in mind that insurers also provide optional extras. These are not mandatory but they can provide a lot of useful functionality for your car insurance. For example, you can include servicing or emergency car cover in your insurance. This can provide you with a replacement vehicle if you need to have your car serviced and could be very beneficial for many drivers.
Lower your car insurance cost
If the above makes you dread the cost of getting car insurance, don’t worry. There is a way you can easily lower your premiums: driving safely! If you don’t make a claim for a specific amount of time, Dubai car insurers will lower your premiums. It’s called a No Claim bonus and it is available to all vehicles and drivers. It can be helpful to maintain a clean record as the bonuses can be rather big.
Other than that, you should always get estimated car insurance costs from a few insurers. Comparing different options is a great way to control your insurance premiums. It’s also a very easy thing to do, as most insurers offer their policies online. You can just fill in your information and get an accurate quote in a few minutes.