If you’re thinking about buying a new car, it’s always an exciting time. Everyone has a budget when they’re looking for a new vehicle, but it’s important that you budget properly to ensure you get a car you can comfortably afford. Comprehensive car insurance is a non-negotiable expense when it comes to owning a car, so you need to factor this in before you buy.
Understanding car insurance costs
Many different factors can figure into the car insurance costs you’ll incur. For example, if you’re choosing a rare and powerful car, it will cost much more to insure than a mass-produced hatchback with a small engine. Similarly, if you’re buying a car that has a reputation for being popular among car thieves, or you drive a high number of miles a year, the costs grow. Similarly, if you’re planning on buying a car that is already modified, or you plan to modify it yourself, that too will affect your insurance costs.
How do you accurately budget insurance costs?
It’s important that you consider how much of your budget you can afford to spend on car insurance. It’s worth investigating what insurance bracket your car is in – every car is put into an insurance category, so a higher category means higher insurance costs.
As a ballpark figure, for cars costing in excess of 300,000 AED, the insurance is roughly 2.75% of the car’s value, rising to 3% for cars between 100,000 and 300,000 AED, and 3.25% for cars under 100,000 AED. These figures are only averages, however. For many, car insurance is the second-highest ongoing cost associated with running a car, second only to the cost of fuel.
Getting car insurance quotes the easy way
When you need to insure your new vehicle, consider using a specialist insurance comparison website like Compare Insurance. All you need to do is put in your details, the details of the car you want to buy, and some information about your driving habits, and you’ll get a broad range of quotes in seconds. This will help you find the most affordable quote for your budget.
