InsuranceMarket.ae Report Reveals Decline in Car Insurance Premiums in UAE

InsuranceMarket.ae, which is leading digital-first insurance service in the UAE has recently published a report with the latest details of car insurance trends in the country for both new and used cars.

The data that InsuranceMarket.ae collected indicates that the average premiums for the top five insured car brands in the UAE, which include Nissan, Toyota, Ford, Honda and Mitsubishi have declined by an average of 9.5% in 2019, as compared to the same period in 2018.

The most popular car model among vehicles insured in the first half of 2019 was the Mitsubishi Pajero, which usurped the position held by the Nissan Tiida in 2018, and thus showcased the immense popularity of SUVs in the UAE. This is further emphasized by the fact that three of the top five most popular car models insured so far in 2019 are SUVs, with the Ford Edge and Ford Explorer being the fourth and fifth most popular models respectively. The other two models in the list of top five models are Toyota Corolla and Honda Civic. The models which have proved to be less popular so far when compared to the previous year are the Nissan Tiida, Honda Accord and Nissan Sentra.

InsuranceMarket.ae, which is a leading digital-first insurance service in the UAE has recently published a report with the latest details of car insurance trends in the country for both new and used cars.

The data that InsuranceMarket.ae collected indicates that the average premiums for the top five insured car brands in the UAE, which include Nissan, Toyota, Ford, Honda and Mitsubishi have declined by an average of 9.5% in 2019, as compared to the same period in 2018.

The most popular car model among vehicles insured in the first half of 2019 was the Mitsubishi Pajero, which usurped the position held by the Nissan Tiida in 2018, and thus showcased the immense popularity of SUVs in the UAE. This is further emphasized by the fact that three of the top five most popular car models insured so far in 2019 are SUVs, with the Ford Edge and Ford Explorer being the fourth and fifth most popular models respectively. The other two models in the list of top five models are Toyota Corolla and Honda Civic. The models which have proved to be less popular so far when compared to the previous year are the Nissan Tiida, Honda Accord and Nissan Sentra.

Commenting on the data, Avinash Babur, CEO of InsuranceMarket.ae  said that the company’s data points to an overall decline of 9.5 percent in premiums on average for car owners in the UAE. This decline can probably be attributed to a reduction in traffic accidents this year and greater efficiency in insurance distribution. The UAE Insurance Authority had introduced a no-claims bonuses directive last year and motorists with a safer record began benefiting from discounts on premiums for their.

Other factors that contributed to the decrease in premiums included market depreciation as new car sales slowed.

Babur added that it has become more convenient to purchase used vehicles thanks to better infrastructure, and hence more customers prefer to buy pre-owned cars, which are less expensive. This in turn leads to lower insurance premiums.

The firm’s study also revealed that the largest number of insurance claims are made over the summer months and during Ramadan. In 2018, 913 claims were made at InsuranceMarket.ae between May and August, and January had the lowest number of claims with just 189 claims submitted.

Three quarters (75%) of InsuranceMarket.ae users preferred to have comprehensive insurance coverage rather than third party only insurance, as they recognized the benefits of having a policy that covered accidental damage to the policyholder’s own vehicle, as well as its liability to the public.

“As premiums continue to drop, we are seeing that customers are increasingly opting for comprehensive coverage to provide maximum protection and greater peace of mind. Comprehensive cover protects the policyholder against any damages caused due to theft, accident or fire in addition to providing cover against third-party insurance, meaning you may be covered for all car insurance eventualities,” said Babur.

“Generally, if you own a high-end car, whether new or used, it is a good idea to have a comprehensive cover. You can also choose additional optional covers such as agency-repair, which ensures the repair of vehicles being done by the manufacturer authorized workshops, helping to keep the resale value high and retaining the vehicle’s warranty.”

Commenting on the data, Avinash Babur, CEO of InsuranceMarket.ae said that the company’s data points to an overall decline of 9.5 percent in premiums on average for car owners in the UAE. This decline can probably be attributed to a reduction in traffic accidents this year and greater efficiency in insurance distribution. The UAE Insurance Authority had introduced a no-claims bonuses directive last year and motorists with a safer record began benefiting from discounts on premiums for their.

Other factors that contributed to the decrease in premiums included market depreciation as new car sales slowed.

Babur added that it has become more convenient to purchase used vehicles thanks to better infrastructure, and hence more customers prefer to buy pre-owned cars, which are less expensive. This in turn leads to lower insurance premiums.

The firm’s study also revealed that the largest number of insurance claims are made over the summer months and during Ramadan. In 2018, 913 claims were made at InsuranceMarket.ae between May and August, and January had the lowest number of claims with just 189 claims submitted.

Three quarters (75%) of InsuranceMarket.ae users preferred to have comprehensive insurance coverage rather than third party only insurance, as they recognized the benefits of having a policy that covered accidental damage to the policyholder’s own vehicle, as well as its liability to the public.

“As premiums continue to drop, we are seeing that customers are increasingly opting for comprehensive coverage to provide maximum protection and greater peace of mind. Comprehensive cover protects the policyholder against any damages caused due to theft, accident or fire in addition to providing cover against third-party insurance, meaning you may be covered for all car insurance eventualities,” said Babur.

“Generally, if you own a high-end car, whether new or used, it is a good idea to have a comprehensive cover. You can also choose additional optional covers such as agency-repair, which ensures the repair of vehicles being done by the manufacturer authorized workshops, helping to keep the resale value high and retaining the vehicle’s warranty.”