- When it comes to defining a “cheap” car insurance premium, the car model and type isn’t enough information.
- Insurance companies look at a variety of aspects before determining a premium.
- The actual car value doesn’t define a low-priced premium, but rather the percentage of the premium relative to the car value.
When it comes to finding the insurance premium that suits your budget, many people often assume that the cheaper the car, the lesser the premium. Right? …
Wrong! This assumption could be valid to a certain extent but certainly not enough to define whether the insurance premium is affordable or not. Instead, calculating the percentage of the premium relative to the car value is what insurance experts use to characterize the price position of a premium. Precisely, a rate around 2% of the car’s actual value would be labeled as inexpensive.
So, with this in mind, do you know what cars have the least expensive insurance rates?
Car insurance premiums are calculated with several factors in mind.
These include information about:
- The driver’s profile (age, experience, license origin, etc.)
- The model type and age of the car that’s being insured
- In which Emirate it is registered
- Who will be driving the vehicle
- The person’s driving history.
Typically, a comprehensive premium would cost nothing less than AED1,300 per annum. But it’s still surprising to know that even though you may have a smaller and cheaper car than someone else, your premium may be relatively higher.
Every insurer decides the premium of the car based on what cover is needed – sports cars are typically considered high-risk, while SUVs are seen to be costly to repair. But surprisingly, the top 12 vehicles with the lowest premiums, relative to the value of the car, are cars you wouldn’t expect.
As mentioned before, a relatively economical premium can be defined as approximately 2% of the car’s value.
For example, if a person chooses to insure a 2018 Bentley Flying Spur W12, valued at AED 850,000, they’re looking at a premium of around AED20,239.
While this sounds like a lot, the premium itself is only 2.3% of the car’s overall value, which makes it a “cheaper” car to insure, than a Cherry T11 Tiggo 2.0 with a premium rate of 2.8%.
Aqeed, the insurance tech company breaks down the top 12 cars with the lowest insurance rates in 2018.
This list is the most diverse range of cars, showing how smaller doesn’t always mean cheaper.
The Toyota Rav4 2.5L is seen as a compact SUV for middle-income earners. While not in line with more luxury, high-end SUVs, the insurance premium is 2.7% of the car’s value.
Whereas the Land Rover Range Rover 5.0 Vogue SE has a premium rate of 2.2%.
The Nissan Altima 2.5 SV comes in second place with an insurance premium that reaches 2.3% of the car’s value.
Both customers and insurance companies trust this vehicle. By customers as it is a family-friendly sedan with excellent fuel economy and has simple specs such as comfort and safety features. And by insurance companies, since it is cheap to repair given it has abundant spare parts in the region, hence the lower premium value.
So, when looking for your next insurance premium, you now have the tools to understand better if your car insurance premium is actually a cheap one. And when looking for a premium that suits your vehicle and budget best, make sure to do an ample amount of research before settling.
Aqeed can help you in your investigation. Simply visit aqeed.com to compare quotes from up to 15 national insurance companies and find the most suitable premiums for your vehicle and your pocket.