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Car insurance is a product that helps the owner of the car to mitigate risk arising from unforeseen events of the future. There are many factors that determine the premium of your car insurance like age, customer location, driving history, and so on. Having car insurance is mandatory in the UAE, hence it is a mandatory cost that needs to be borne by the car owner. Some of the most common factors that affect your car insurance premium are as follows:

The Customer Location

The most important element that determines an individual's insurance premium is his/her residential city. Certain Emirates might mandate its residents to buy car insurance covers that have specific insurance components in them. These mandatory requirements might increase the price of the insurance cover making it expensive compared to other Emirates.

For example, the mandatory requirements for car insurance in Abu Dhabi will defer from car insurance in Dubai and this mandatory difference can reflect in the price offered by insurance products in each state. To get a sense of the insurance premium in Abu Dhabi all you have to do is type “car insurance Abu Dhabi” in google you will get various quotes from insurance companies servicing in Abu Dhabi.

Zip Code

Fun fact, your zip codes can influence the price of your car insurance. Wonder how? Well, imagine if your zip code is a very low crime neighborhood in Abu Dhabi with fewer accidents, the insurance companies would in such instances offer car insurances with cheaper premiums. On the contrary, if any of the above-mentioned factors are stacked against you, you're looking at a high car insurance premium for your car.

Non Residential Zip Codes

It is not just the zip code of your residence that counts but the zip code of your office and your daily routes, and so on. All these factors are instrumental for an insurance company to compute a suitable premium for your car insurance.

Age

Age plays a vital role in determining the insurance price for car insurances across the Emirates. While browsing for car insurance online the prospective customers have to enter his/her age on the website to get an insurance quote. Young drivers tend to pay more than experienced drivers, this is because the experienced drivers usually come with proven track records which are absent in the case of teen drivers.

Claim and Driving History

If the prospective customers have any previous claims, accidents (unclaimed/claimed), traffic violations, and so on, he/she will have to pay a higher insurance premium when compared to someone who has a clean driving record. Some insurance companies tend to overlook violations that have been conducted three years ago as long as he/she is not a repetitive offender. But it is always good to have a clean driving history to ensure cheap insurance premiums.

Car Make and Model

Car insurance companies usually like to ensure reliable and safe cars, such cars usually come with very low insurance premiums. Certain models in the product lineup tend to demonstrate higher reliability and safety than the rest of the product offering, hence commanding cheaper insurance quotes.

If certain car models have a bad reputation for being “the car thieves' favorite” such cars might get a higher quote from the insurer. Last but not least, the most obvious reason is the “price of the car itself. If the price of the car is higher naturally the cost of car insurance will also remain high and vice versa. To find out more you could always surf for car insurance online to get appropriate quotes for your car.