I used to think that if I save up just enough money, I could buy myself a car. I did not take into account the many other costs that go into maintaining the car, least so the insurance. I was just so very focused on having enough to buy the car, not knowing that that would not be enough. I was young and excited.
So, obviously, when you want to buy a car, you need to budget for insurance, among other maintenance costs. The cost of the insurance is some of the percentage of the total cost of the car. Every car and its owner/driver has a different value when it comes to insurance. Car insurance changes time and time again (whether it’s the cost or the policies).
There is a formula you can follow if you want to know more about your vehicle insurance:
- If your car has a value of below AED 100,000, use a starting rate of 3.25 percent.
- If your car has a value of between AED 100,000 and AED 300,000, use a starting rate of 3 percent.
- If your car has a value of between AED 300,000 and AED 1 million, use a starting rate of 2.75 percent.
Using this formula, you can apply the discounts and /or the surcharges listed below:
- If you are a car owner between the ages of 23 and 25, add 25 percent to the starting rate.
- If you are a car owner between the ages of 25 and 30, add 15 percent to the starting rate.
- If you do not have a convertible driver’s license from your native country, and your UAE license is below a year old, add 25 percent to your starting rate.
- If you are a car owner between the ages of 30 and 59, take 10 percent away from the starting rate.
- If you own an SUV or a four-wheel drive, take 10 percent away from the starting rate.
- If you own a sports car or a coupe, add 20 percent to the starting rate.
- If you have just bought your car (i.e. it is brand new), take 10 percent away from the starting rate.
- If your car is between three and five years old, add 30 percent if you want an agency repair cover.
- If you wish to get personal cover for accident benefits for the car’s driver, add AED 120 and AED 30 for each passenger.
- For car rent benefits while your repairs are being done on your car, add AED 150.
The above list is not a sure-fire thing. However, it provides a rough estimate of how insurance of your car would look like.