Tag: annual mileage

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Car Insurance

What factors can affect your car insurance premium?

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The cost of vehicle insurance is calculated using a range of factors relating to your demographics, policy details and driving history. Let’s take a closer look at some of the variables impacting your car insurance quotes below.

Age and gender

According to figures released by the Ministry of Interior (MOI) in 2019, 45 per cent of all road accidents in the UAE are caused by young drivers. Statistically, male teens have more car accidents than their young female drivers, resulting in young men incurring higher insurance rates. However, discounted rates are usually available for certain age groups, with many companies dropping their premiums by as much as 20% when drivers turn 25.

Typically, those between the ages of 30 and 69 are considered less likely to crash, therefore representing a lower risk to insurers. However, elderly drivers pose a similar risk to teens, which is reflected in the insurance rates for individuals in their 70s. Older men are also more likely to incur higher premiums compared to elderly women.

Location

Insurers typically start by asking where you live. If you live in a highly-populated area, you are considered more likely to make an insurance claim due to the increased risk of getting into a car accident. Not all companies will use your location as a deciding factor, but if they do, they may take into account the number of vandalism cases in your area, the number of fraudulent claims made and the likelihood of damaging weather.

Driving record

The amount you’re required to pay will directly correlate with your driving history, including all claims, accidents, convictions and tickets. If you have previous claims on your record, you’re considered more likely to make another claim, although these will become less important over time if you avoid getting any further tickets and accumulate a few years on your no claims bonus.

Annual mileage

The less you drive, the less risk you have of being in an accident, so it’s important that you do your best to estimate how many miles you drive each year. If you’re expecting the number of miles you drive to go down, let your insurance company know – this could save you a lot of money.

To find out more about the factors impacting your insurance quotes, contact us at Compare Car Insurance today.

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Categories
Car Insurance

How to get cheap car insurance online

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Anyone who uses a car will need car insurance. This is a regular payment which can be a major expense for many people, as well as being time-consuming for owners to set up. There are many different policies out there, often with wide-ranging costs, so how do you ensure you get the best deal for your money? Our experts at CompareInsurance.ae know all the tips and tricks and want to share them with you!

1. Choose a cheap car to insure

If you are looking to buy a new car but are worried about the insurance costs, then take a look at the average insurance costs of cars before you buy. Cars that may be at the same sale price point may have hugely different insurance costs, so always check with an insurance broker before buying.

2. Pay in one go

You will often get a choice of whether to pay your insurance in one lump sum or in monthly instalments. Paying the whole cost in a single go will often reduce the total amount you need to pay, as your insurance company won’t charge any interest on monthly instalments. If you have the funds, then paying upfront is always best.

3. Reduce annual mileage

If you limit the amount that you are on the road, it stands to reason that your insurance premiums will be reduced. Insurance companies analyse your time on the road through annual mileage, so a lower annual mileage will lead to a lower insurance cost. Make sure you are realistic with your mileage claims, though, as if your provider finds out that you weren’t accurate then there could be problems further down the line.

4. Check the extras you get

Different insurance premiums will have different benefits, including windscreen cover, breakdown cover and the use of a courtesy car. All of these will increase the costs of your insurance premium, so it’s well worth thinking about whether you really need to be paying for these benefits.

To compare car insurance, speak to our motor insurance specialists via our online chat or Whatsapp. Our staff are always ready to help you save money, so take a look today!

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Categories
Car Insurance

Why does your annual mileage affect your car insurance?

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There will always be a number of factors which will affect the price of your car insurance. This includes your age, profession and the vehicle that you will be driving. The majority of providers will also be interested in your annual mileage when determining your quote. This is the number of miles that you will – or think you will – be covering in the space of one year. The question is: why do the providers want to know this and why does it affect your ability to get your hands on third party car insurance? This is what you need to know.

Time on road

Your annual mileage will give insurance providers a rough idea of just how much you intend to use the car to determine the average cost of car insurance. This then helps them to determine the likelihood that you could be in an accident. Take, for instance, if you do a 40-minute commute to work each day. Due to the fact that you’ll probably be spending upwards of an hour on the road, it becomes more likely that you’ll be in an accident compared to someone who might only do a 10-mile commute and therefore only find themselves on the road for a shorter time every day.

Condition of car

You should know that your car becomes more worn with each mile it’s on the road. This happens in numerous ways, but generally, there’s an increased risk of damage to the engine and tyres when a car is readily used. Therefore, insurance providers tend to presume that someone who racks up a lot of miles in one year is more likely to be in an accident due to the fact that their vehicle will be less reliable. This won’t always be the correct assumption to make but it’s still how providers decide upon quotes.

What can you do?

You can still find cheap car insurance even if you’re planning on having an unusually high annual mileage. The trick is to make sure that you’ve weighed up all your different options by comparing insurance quotes. This will ensure that you don’t have to fork out more money than necessary to get your car insured.

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