There are a number of factors that Insurance providers take into consideration that will help calculate the premium. It can get rather complicated and depends on various factors. The more advanced Insurance providers have invested millions of Dirhams in research to see what type of vehicles or Drivers have the best records. These calculations are based on a number of factors such as your Age, price of your car, your history of driving, your accident history, the type of car, car specifications and a lot of other factors.

Every Insurance company has its own calculations. For some the commercial sector does better than the private sector, but the same can be the otherway around. Below are a few factors that play a role in determining the Premium for your vehicle

Age – Young drivers or drivers who have recently taken their driving license, pose a greater threat to having an accident to the experienced drivers. As a general rule of thumb most insurance companies have a standard price based on drivers between 25-65 years. Drivers below that age are charged a higher premium

Sports Cars – Such cars are prone to dangerous accidents as the speeds are very high of these cars. Young driver who are fascinated with high speeds tend to have more dangerous accidents. These are all statistics based research and not anybody’s opinion. Therefor sports cars or coupes generally have a higher premium.

Off Road – Off-road insurance for 4x4s does not come cheap. Not every insurance provider will give off-road coverage as the chances for accidents are high. The few that do provide the off-road coverage restrict it to a maximum of 500 meters into the desert. Again only a number of Insurance providers will cover the desert. Reason being is self-explanatory – risk is high.

High End Vehicles – All high-end vehicles can be expensive to Insure. Although the fact that they are just expensive vehicles and therefor the insurance will be high, depending on the vehicle it can be costly also. On the other hand sometimes drivers or owners of Bentley and Rolls Royce are subject to fewer accidents as they drive their vehicles at slow speeds and with a lot of care.

GCC Coverage – A few factors determine the higher premium for coverage outside of UAE. Insurance providers generally charge an extra of AED 150 – AED 600 for the coverage outside UAE. The reason is simple, as the coverage is outside their own territory. Drivers will be mostly driving on highways for long periods of time and thus it classified as a higher risk.