Car Insurance Premium: Factors that Impact

1
Car Insurance Premium Factors that Impact
2

• Model of your Vehicle
• This particular factor has two sub factors
  attached to it.
• Year and model of the vehicle-The Market Value
  also known as the Insured Declared Value of your
  vehicle is what helps determine the premium you
  pay. Hence the price of your car has a direct
  relation towards your premium payment. 
• Car claims- Most insurance companies keep a tab
  on the ratio of claims and cars types. There are
  specific cars that are prone to damage, while
  some are rare or kept to the minimum.

3
Safety Features- Most newly manufactured cars
come with a lot of safety features or with the
option of adding them. They could be anything
from safety airbags, advanced braking systems,
locks, anti-theft devices, GPS tracking devices,
etc. These features allow for safe driving and
reduces the risk of damage and theft to the
vehicle. If your car is fitted with these safety
devices, car insurance companies can lower your
premium rate to an extent.
4
Vehicles purpose- Cars can be used either
commercially or personally. Insurance companies
offer insurance to both commercial as well as
cars for personal use. However, there is a
difference in insurance premium charged
especially if your vehicle is purchased for
commercial use as insurance companies look at it
as an investment that helps the owner earn an
income.
5
Vehicles Engine Capacity- Most cars come fitted
with either a V8 or a V4 engine. The engine in
your vehicle plays a pivotal role in determining
how much car insurance you will be paying. The V4
engine is not as powerful as the V8 engine and
hence attracts a much lesser premium
comparatively.
6
Driving Record- Insurance companies get
information on risk drivers. Drivers records like
drunk driving, rash driving, police record,
accident record, and number of claims made are
recorded. If the owner is a risk driver, then the
insurance company charges a higher Car Insurance
premium as compared to the someone with a clean
driving record.
7
Insurance Area/Zones - Insurance companies have
predefined zones, termed as Insurance Zones.
These are determined as per areas where vehicles
are vulnerable to theft, damage, accidents or
even forces of nature. If car owners happen to
insure their vehicles in these insurance zones,
they could be charged a higher premium. 
8
Credit history- Most Car Insurance companies
today have access to your credit history/score
maintained by CBIL. If you have a lower credit
score, insurance companies charge you higher
premium. Those with a healthy credit score pay
much less in terms of yearly premium.
9
Profession- It may sound as an unlikely reason
that determines your Car Insurance . However your
profession plays a vital role. According to
insurance companies car owners who need to use
their vehicles to help them in their work e.g.
marketing/sales professionals, work in a high
risk environment. Hence they need to pay a much
higher premium as those involved in low risk jobs
like bank manager, doctors , etc.
10
Car Insurance Dubai
Al Buhaira National Insurance Company
(ABNIC)  Head office - 06 517 4444 Dubai
- 04 231 9444 Bur Dubai - 04 343
5995 Abu Dhabi - 02 622 6200
www.albuhaira.com