Every car owner in Sharjah is required by law to have insurance for their vehicle. It doesn’t matter if the car is new or used; you still need car insurance. If you fail to insure your car in Sharjah or other emirates you are liable for a fine by law.
To get insurance for your car, you need to pay for an insurance premium. These premiums can be paid once or in instalments. The premium determines how much you will be paid in the case of an accident.
How much is car insurance in Sharjah?
The cost of insuring your car depends upon a number of factors, please see below.
Type of insurance
There are two types of insurance
Comprehensive insurance – this kind of car insurance compensates both cars that are involved in an accident. The cover also extends to theft, medical treatment, legal fees, fire and any other damage. Therefore it is costly.
Third party liability insurance – this comes from its name – third party and not you or your car. The other vehicle receives compensation for the accident. It becomes cheaper than comprehensive insurance.
Date of birth and driving experience
Your date of birth determines your age. The younger you are the higher the premiums and the older you are, the lower the premiums. If you are between 30-60 years of age, a 10% cost of the premium will be lower. If you are young, let’s say 24 years old the cost of the premium will increase by 25%.
Experience is still related to age though there might be exceptions for people who start driving their car when they are much older. An inexperienced driver has a higher chance to cause an accident, and this will increase the premiums because you have a higher chance of making a claim.
If you are in Dubai or Sharjah, you are likely to pay less for your car insurance than people from other emirates. Statistically, people from these two emirates have fewer accidents, and so the chances of them making a claim are lower.
There are two types of repairs; an agency which is carried out by an official dealer of your car brand and non-agency repair which is done by a company selected by the insurance company. Agency repairs attract more cost on your premium.
Car value and model
The premium is calculated based on your car value using a percentage. Regular vehicles will be much cheaper than a luxury car due to the difference in cost of the vehicles.
An older model is cheaper than a recent model. Other factors considered in the model are the spare parts like the engine size of the car. A large size engine will cost more.
Some car models come with safety features which make them less likely to be involved in an accident. As such, the premiums will be low.
You get a discount in percentage if you have not had any claims. You only need to present a certificate to prove that you had no claims in the last year or so. The longer the years, the more discount you get. A year with no claims gets you a 5% discount.
If you have had an issue with traffic authorities or got into an accident, then you are a high-risk client. So your premiums will be higher.
Before taking a car insurance cover for your vehicle in Sharjah, it is crucial that you get all the information from your insurance provider. Present your needs so that the company can give you options that are suitable for your needs.