- Insurance companies look at a variety of factors to give you unique coverage.
- This means that you, as a driver and/car owner, can get the best coverage, even if the premium if slightly lower or higher.
When it comes to getting an insurance quote, it’s not ‘one size fits all’ – insurance companies tend to quote premiums based on a variety of factors, which not only help them save money from a business perspective but also allows them to give the best cover that’s unique to every individual.
It’s easy to fall into the trap of choosing an insurer that offers the lowest premium for your car. At that time, it might seem like you’re saving the odd cent or two, but there are a few things to consider – a lower premium doesn’t necessarily mean that you’re getting the same amount of cover as an insurer who asks for more. And with that being said, a higher premium doesn’t mean you’re covered for everything.
This is where YOU, and your history, as a unique and individual car owner, comes into play. Ideally, before offering you a quote for your premium, insurers should ask you a variety of questions that essentially lead up to what you should pay, covering you in the best possible way.
Question 1: What model, type and year is your car?
It seems pretty evident that any insurer would want to know these specifics about the vehicle they’re insuring – but the more specific you are, the better. Prime and luxury cars are more likely to have higher premiums, given that parts, services, and repairs are more expensive, should one be involved in an accident at the fault of the driver. Likewise, newer models, even though unlikely to have any factory faults, would also be more expensive to repair.
Insurance companies also look at the type of vehicle closely – sports or high-performance cars are known to be more likely to have accidents or be involved in them, making them higher risk cars. Even SUVs, which are considered to be safer, family-oriented vehicles, come with a higher premium due to various aspects. With that being said, every feature and spec of a car is looked at, from safety features, previous reviews, and ratings as well as the target audience (for example families, singles or young drivers, which will be spoken about later in the article).
Question 2: In which Emirate is your car registered, and where will it be primarily driven?
When it comes to looking for an insurance quote within the UAE, knowing where and when your car will be driven is of utmost importance to any insurance company. This is not only because the road/traffic laws can differ between each Emirate, but also because insurers need to consider any areas that they may or may not cover on their default schemes. For example, if you choose to buy a car in Dubai, but will be driving to Oman and back on a daily basis, you may need to get extra cover for Oman, as it is an entirely different state. This is quite common, and for all grounds to be covered, it’s better for your insurance company to know as much as possible to give you the best cover they can.
Question 3: Who will be driving the car?
It is common for a lot of people to buy insurance coverage for their car and not be the primary driver of the vehicle. Whether it’s a parent insuring a new driver’s car, or a company insuring a fleet of vehicles, knowing the profile of a driver helps insurance companies determine a premium that is most relevant to the driver and the car.
To start, insurance companies always consider the age and experience of any driver – younger, less experienced drivers are considered to be of a higher risk to those who have more years to their license.
In the UAE specifically, insurance companies also ask about the international driving experience of the primary driver. This is because the country is mainly expatriate drivers from all over the world, with different driving backgrounds, laws and regulations. Some countries are considered more like the UAE driving system than others, which also has an impact on what one’s premium could be.
The origin of your driving license is also essential, given that many people obtain their permits in different places than their native countries.
Question 4: What is your driving history like?
When it comes to providing a quote for a premium, insurers consider the history of a driver to know more about who they’re insuring. This is not to say that the more claims one has, the more negatively your overall premium is affected. But on the other side, having a no-claims certificate –a proof you have been claim-free for the past 1,2 or 3 years plus– can positively affect your overall premium price with a discount; and your no-claims discount accumulates over time; so, for every year you renew your policy without making a claim, the discount is higher.
Looking at the history of a driver allows insurance companies to assess the type of driver and situation they’re insuring, letting them decide on a premium that covers that driver best.
There are a lot of factors that insurance companies take into account when it comes to providing a quote. So, if you’re looking for a new insurance company, look at the options that cover you as an individual, rather than a generic quote.