Used Car Insurance Policy and Premium in the UAE

Let us see some important factors considered in a used car insurance policy and its Premium for your vehicle in the UAE.

Factors affecting Used Car Insurance Policy Premium:

• Cost of Vehicle
• Age of Vehicle
• Driver’s Age
• Driving Record

The concept of insurance is to provide financial protection at the time of unforeseen risks. The vehicle you use for commuting is sometimes considered a major risk so you need to have the right car insurance policy in place. But let us wonder how much does it cost? And what are some factors that affect the premium amount?  There are many factors that determine the price of insurance, but let us just focus on a few important ones!

Factors That Affect Premium

As per some major insurance companies, the cost of your car insurance premium is impacted by factors like your age, gender, marital status, driving record, and credit rating. Insurance providers make use of the latest technology and algorithms to assign you a premium based on these factors.

• Cost of Vehicle

The cost or replacement cost of the vehicle is an important factor in calculating the premium. The more expensive the vehicle, the higher the cost for insurance.  The reason is in case of a total replacement, the expensive vehicle needs more amount to replace. In case of an accident and repair cost, the same is the case with spare parts and service charges the insurance company has to bear.  Cheaper model cars will have a lesser impact on insurance companies and naturally, the premium too will have an effect on it.

• Age of Vehicle

The age of the vehicle has a significant impact on the premium. The older the vehicle, the higher the cost for insurance because it is seen as more likely to be involved in an accident. Younger drivers are more likely to be less experienced and less careful than older drivers.

Used Car Insurance Policy

• Driver’s Age

Your driving experience and driving record are the two most important factors in how much you’ll pay for car insurance. You can also control how much you pay for your premium by choosing a safe vehicle that’s not going to be totaled if it’s in an accident, and by making sure it has a good security system.

• Driving Record

Your driving record is one of the most important factors in determining your car insurance premium. Insurance providers use your driving record to determine how likely you are to be involved in an accident or other incident that could cost them money. If you have a poor driving record, there are chances of overspeeding, running red lights, and making illegal turns, etc.  These all are reasons for accidents and more insurance claims.  Nowadays, due to high technology assistance and connectivity of systems between insurance companies and traffic departments worldwide, any bad driving will be accounted for and affected in the driver’s history and insurance policy, and premium calculations.