- Even the most careful drivers can find themselves involved in car accidents.
- The circumstances of the accident can contribute to whether your car insurance premium will increase.
- Who was at fault and the size of the accident (major or minor) will determine how your insurance provider will calculate your renewal premium.
- Many factors impact car insurance premiums overall, so if you have a low accident driving history it could be worth shopping around for the best value car insurance.
A sad fact of life is that accidents happen. No matter how much we might like everything to run smoothly, we can’t control everything around us. Sometimes things just go wrong. Driving is one area in which accidents can have a lasting impact, particularly, of course, if they are severe ones. Incidents on the road could cost you money in your car insurance premium.
You might be one of the safest drivers in the world, but you aren’t immune to accidents. Unfortunately, when it comes to the road, you have to contend with other drivers, as well as your own reflexes.
In Dubai in 2016, there were 4,788 serious accidents and 725 fatalities. In 2017, 521 road accidents resulted in death.
With so many drivers from so many different cultures, there is a unique level of misunderstanding about road rules, which can lead to problems. Who hasn’t whispered (or yelled) obscenities at someone cutting them off or forgetting to indicate?
Hopefully, any accident you are involved in won’t result in injury, but that isn’t the only way you can be hurt by accident. Damage to your car could impact you financially, particularly when it comes to your car insurance premium increase. So if you do find yourself in the unfortunate position of being in an accident, what will that do to your car insurance?
What happens after I have an accident?
The first and most important thing to do is to get a police report. Insurance companies won’t be able to process your claim if you don’t have a police report, so you could be on the hook for any repairs or replacements that might be needed.
How much will my car insurance premiums go up after an accident?
Well, it might not. It depends on a few factors. The UAE insurance industry is one of the less predatory sectors globally. Thanks to the accommodating requirements of the UAE government, insurance companies are less inclined to seize every opportunity to make more money and more prone to help you resolve your issues quickly and efficiently. When it comes to car insurance and accidents, there is no mandatory premium loading in the UAE, so one accident wouldn’t necessarily mean your premiums will increase.
Wait a minute; what is mandatory premium loading?
Loading of premiums can be a common practice amongst car insurance providers in other countries. Essentially it defines the additional amount added to a car insurance premium cost to cover someone who might be considered higher risk and their inevitable cost to the company.
So that won’t happen with my UAE car insurance provider?
Not to the extent of other countries. If you are renewing your existing car insurance policy, your insurer could load the renewal premium by 20-25% for a minor accident. However, as the customer, you could choose to switch your car insurance to another company and retain your standard rate. By browsing other options for car insurance after an accident, you could find yourself a much better rate.
Oh, that sounds like a good option!
It could be! However, it is worth noting that you wouldn’t be eligible for a no-claims discount or other benefits, such as agency repairs, that could be tied to a no-claims proof.
Does that mean I definitely won’t be able to find a better premium price if I have had an accident?
Not at all. Car insurance providers look at a variety of factors when it comes to calculating your car insurance premiums. Your accident history is just one piece of the data they work with. They will also consider your age, your background, the type of car and its quality and your driving history in general.
You might have a car insurance increase after an accident, but that isn’t always the case. If you have only had one accident in ten years, you could still get a lower premium than someone who had several accidents, but none in the last year. If you have had multiple accidents, this will make you a higher risk candidate, which could mean you would be subject to a higher renewal premium.
Car insurance providers calculate loadings based on a statistical analysis of their own claims data; however, there is, as yet, no centralized system across insurers for this type of data. So that means you could still find a better deal by switching providers.
Wait, what happens if the accident wasn’t my fault.
This is one of the reasons it is essential to get a police report after an accident. If the accident wasn’t your fault and the police report reflects that, it can help with your car insurance situation.
In the case of a crash with a police report, the insurance company of the party at fault will cover the claim.
If your vehicle is involved in an accident where the one at fault isn’t found, which could happen with a hit-and-run or if someone hits your parked car and doesn’t leave a note, you might find yourself having to claim on your car insurance. When this happens, most car insurance companies would still consider this as a claim. While you weren’t at fault, the cost of repair is still incurred on your account, as it were.
However, some car insurance companies would still provide you with a no-claims certificate yet, which could help with looking for a new car insurance policy.
What about if I had a major accident?
Any potential increase in your car insurance premium would be applied for relatively moderate claims. For major accidents, particularly those that result in severe damage to your car or someone else’s vehicle, your existing car insurer might refuse to renew your car insurance, or a new insurance company might not offer you a new policy if they are aware of the claim.
Wait, I might have got some speeding tickets lately – will that cause an increase in my car insurance premium?
Well firstly, you should try slowing down. Speeding is the number one cause of accidents in Dubai, and our speed camera tickets are super expensive! That said, no speeding data is currently available to insurance companies so that this information won’t affect your premiums at all. However, this is likely to change in the future, so you will need to stop speeding on Hessa Street (that one gets us all!).
If you are worried about your car insurance premiums going up after an accident, you need to consider the following factors:
• How serious the accident was
• Whose fault the accident was
• Your overall driving history
If the accident was minor, not your responsibility and you have a good driving history, your car insurance provider might not increase your premiums substantially on renewal, but more importantly, you could find yourself a much better deal if you shop around. At Aqeed, you can browse multiple car insurance policies tailored to your specific requirements and get expert advice. That way, you can find the best possible deal for your vehicle, your lifestyle, and your wallet.