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Car Insurance claims have risen by 45 percent as compared to last year as COVID-19 restrictions have been easing in the UAE. More and more cars are hitting the streets now as business activities steadily increase to pre-covid levels.

During the COVID-19 pandemic, the insurance premium throughout the sector fell to a record low of 60 percent. This phenomenon was due to the fact that during the COVID-19 pandemic most residents stayed indoors and spent significantly less time on the roads.

Why are Car Insurance Prices Increasing?

Insurance prices are expected to move on an upward trajectory as more and more people decide to travel by road. Due to COVID-19 UAE residents like other people across the world were denied a chance to travel abroad hence contributing to higher traffic and accidents. These trends have helped in accelerating the upward trajectory of car premiums in a very short period of time.

A study conducted by RoadSafetyUAE and RSA Insurance has found out that about 40 percent of the accidents that occur in the UAE are controllable. Speeding and lack of maintaining adequate distance between cars are considered to be the main reasons for the majority of accidents and these are accidents that can be avoidable. Since there is an increase in automobile traffic on UAE roads this has created a proportional increase in accidents in the country.

As per Thomas Edelmann, the founder of RoadSafetyUAE non-proper maintenance of cars can lead to a lot of accidents hence it is very important to make sure the car goes through a thorough maintenance check at regular intervals. This will ensure that the owner can enjoy a nonclaim bonus in the future helping them to compact the rise in prices to a considerable extent.

Should Money be the Sole Criteria to Buy Car Insurance?

The UAE insurance market is considered one of the most competitive and mature markets among GCC countries. This is mainly due to the high purchasing power of its citizens and the advanced economy it enjoys. UAE has all the major players operating in its market creating a highly competitive environment for the insurance players. This ensures there is something for everyone.

That being said, the policyholder should choose the insurance product that perfectly suits his/her purpose. Money should not be the only parameter that should be taken into consideration while choosing car insurance as it might not serve the intended purpose.

What is the Best Way to Find the Cheapest Third Party Car Insurance in Dubai?

The best way to find the cheapest third party car insurance Dubai is by visiting an online insurance aggregator. Online aggregators like Policyhouse.com will have access to a large number of policies offered by various insurance companies in the UAE. The biggest advantage of buying online insurance through an insurance aggregator is that they give you an opportunity to compare various insurance policies and help you make an informed decision. Therefore, the best way to enjoy affordable insurance in Dubai is to buy car insurance online.