How Much Does It Cost To Insure a New Car In Dubai?

In the UAE, the outlook of car insurance costs is a subject of considerable significance. The financial aspect of insuring vehicles, while serving as a safeguard against unforeseen events, holds a crucial role in the decision-making process for car owners. This article delves into the factors influencing car insurance pricing in the UAE, highlighting the intricacies that contribute to the varying expenses.

Factors Influencing the Premiums of Car Insurance in Dubai

Based on several aspects, car insurance companies decide premiums for individuals. Some of these are age, driving history, car features and history, demographics, and much more. However, there are certain set criteria to analyse the premium of car insurance Dubai. In the next section, we have provided an approximate cost that is required to insure a new car in Dubai.

https://marketmillion.com/category/crypto/

How Much Does It Cost to Insure a New Car in Dubai?

Let’s start with an example! Suppose your car value is less than AED 100,000, then the base starting rate would be considered 2.5%. On the contrary, if your car value is more than AED 100,000 and less than AED 300,000, in this case, the initial base rate would be 2.35%. The base rate would be 2.2% if your car value is more than AED 300,000 and less than AED 1 million. 

• For individuals aged 23 to 25, apply a 25% increase.
• For those falling within the age bracket of 25 to 30, include a 15% surcharge.
• If your United Arab Emirates (UAE) driver’s license is less than 1 year old (and you lack a license from your home country for at least 1 year), add 25%.
• For individuals aged over 30 but under 60, deduct 10%.
• If your vehicle is classified as a coupe or sports car, append a 20% fee. In case your vehicle’s age ranges between 3 and 5 years and you desire agency repair coverage, tack on 50%.
• Supplementary Personal Accident Benefit for the driver amounts to AED 120, while an additional AED 30 per passenger can be added (some insurers package this within standard coverage).
• For Rental Car Benefit (also often included in standard coverage), a supplemental charge of AED 180 applies. This ensures the provision of a substitute vehicle during repairs in the event of an accident.

Also Read – How Much Does Car Insurance Cost in Dubai, UAE?