How can I estimate the cost of my car insurance in the UAE?

protected carWhen buying your car in the UAE, it is of course important to be able to budget  for car insurance, as this would be costing you a few percentage points of the value of the car itself. While every single driver profile and their corresponding vehicle would cost differently at any point in time, especially since the world of motor insurance underwriting is constantly developing, (and this is why we don’t sell policies online and make sure that your personal shopper structures the best solution for you) just to give you a basic idea here is a general formula that you can follow:

Firstly, if the value of your car is less than AED 100,000 take the base starting rate of 3.25%, if it’s more than AED 100,000 and less than AED 300,000 take the base starting rate of 3% and if it’s more than AED 300,000 and less than a million, take the base starting rate of 2.75%.

Now, apply the following discounts and/or surcharges:

        • If, you’re between the ages of 23 and 25 – add 25%
        • If you’re between the ages of 25 and 30 – add 15%
        • If your UAE driver’s license is less than a year old (and you don’t have a convertible license from your home country) – add 25%
        • If you’re more than 30 and less than 60 – deduct 10%
        • If your car is a 4-wheel-drive or SUV – deduct 10%
        • If your car is a coupe or sports car – add 20%
        • If you car is brand new – deduct 10%
        • If your car is not registered in Dubai (but in Abu Dhabi or any of the Northern Emirates) add 5%
        • If your car is more than three years old (between 3 and 5 years old) and you wish to have agency repair cover, add 30%
        • Add AED 120 if you wish to cover personal accident benefit for the driver and add AED 30 per passenger
        • Add AED 150 for rent-a-car benefit i.e. to receive a courtesy car while your car is being repaired in the event of an accident
        • If you are claims free and you can prove it deduct:
              • 5% for a 1 year no claims certificate
              • 10% for a 2 year no claims certificate
              • 15% for a 3 year no claims certificate
              • 20% for a 4 year no claims certificate
              • 25% for a 5+ year no claims certificate

Now, obviously, the above is just a rough indicator of your car insurance rating at the time of writing this article – however, different insurance companies have different areas of strength and similarly your rating can be affected significantly by the coverage you are given as well as the quality of insurer.

Visit insurancemarket.ae to find the best deals on your car insurance in the UAE! We will ensure that the right underwriter receives the right risk so that the customer enjoys a good rate and the insurer wins business that is within their comfort zone and target market. Our scale economies from placing business in bulk helps us add value to our clients in terms of better prices and better service.

[Image Source: automotiveblog.co.uk]

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One thought on “How can I estimate the cost of my car insurance in the UAE?

  1. Visitors to Dubai must be aware of the importance of a comprehensive car insurance cover, and they must make sure that the car they hire is properly insured. Insurance companies in Dubai will assist you to find the best car insurance solution based on your requirements.

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