Car Insurance

An excess (also called a deductible) is an agreed amount a policy holder will absorb towards the cost of an insurance claim. The excess amount can vary depending on the level of cover you have and the higher the excess normally the lower the premium.

A no claims bonus is a reward to drivers from insurers for safe careful driving and for avoiding making any claims on their insurance policy. For example, an insured driver who has not made any claim for 1 to 3 years should be eligible for a discount between 10% and 20% while renewing their car insurance in Dubai (as per the UAE Insurance Authority).

The cost of car insurance can vary hugely. There is a basic cost depending on the value of the car, but the final cost of your car insurance is calculated on several factors.

Some of the elements an insurance provider will take into consideration when calculating the cost of your car insurance include:

• Car value
• Engine size
• Driver’s age
• Year of experience as a driver
• Driving history
• Previous claims or no claims bonus history
• Optional add-ons (windscreen cover, legal cover etc)

Agency repair means that your car may only be repaired at the manufacturer’s authorized workshop. Most insurance companies include this as a standard benefit within Comprehensive Insurance for up to 2 years from the first registration. Some insurance companies offer agency repair as an additional cover for the first 5 years of vehicle registration with additional loading on the premium starting from the 3rd year of registration. For some insurance providers, you will need to provide a No Claim Discount certificate (NCD) from your previous insurer if your car is older than 1 year.