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.
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.
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.
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.