Car Insurance for 23 Years Olds in UAE

By the age of 23, drivers usually have surpassed the stage of having the highest average insurance rates based on age. However, they still tend to pay higher premiums compared to older and more experienced drivers.

In this article, we will explore the average cost of car insurance for 23-year-olds and discuss some tips on saving money and finding the best car insurance policy as per one’s particular requirements.

Average Cost of Car Insurance for 23 Year Olds

When it comes to car insurance, 23-year-olds can expect to pay annual premiums between AED 1,500 and AED 3,900. Although these rates are usually higher than the national average for both coverage types, they are considerably lower than what teenagers and younger adults typically pay.

In the UAE, the calculation of car insurance premiums follows a general guideline based on the car's value. For vehicles valued between AED 100,000 and AED 300,000, the initial car insurance premium is usually set at around 3% of the car's value.

For cars with a value below AED 100,000, the average insurance rate is around 3.25% of the car’s value. Conversely, for vehicles priced above AED 300,000, the average insurance rate is slightly lower at around 2.75%.

Understanding the Factors

Among the several factors considered for the calculation of car insurance premiums in the UAE, some of the most relevant ones here are the driver’s age, driving experience, and past driving record. Auto insurance companies usually perceive young adults as riskier to insure due to their lack of driving experience and higher accident frequency rates. Consequently, insurance providers charge young drivers higher premiums to account for the increased risk.

Saving on Car Insurance for 23-Year-Olds

Despite the relatively higher premiums for 23-year-olds, there are various strategies to secure affordable car insurance for individuals in this age group -

Explore the top plans

Obtain quotes from multiple insurance companies offering comparable coverage to compare rates and select the most suitable and affordable option.

On Policybazaar.ae, you can easily compare the best car insurance quotes from leading providers in one place. With us, you can compare and buy car insurance online in just a few clicks!

Make the best of discounts

Insurance companies may offer various discounts that can help you secure lower premiums. The options may include getting multiple policies with the same company, maintaining low annual mileage, participating in telematics programs, and more.

Keep in mind that the previous point applies here as well — explore the available discounts offered by different insurance providers.

Keep your vehicle in consideration

Certain makes and models of cars are more affordable to insure. If reducing insurance costs is a priority, you may want to explore the option of using an affordable car that is also affordable to insure after selling or trading your car for a more financially suitable option.

Increase your deductible

Opting for higher deductibles for your insurance plan can lower your premium. However, note that since you will be responsible for paying the increased deductible in the event of a claim, choose this option carefully.

Finding the Best Car Insurance for a 23 Year Olds

While affordability is a key consideration, it's important to strike a balance between cost and coverage. Skimping on insurance coverage may lead to financial difficulties in the event of an accident, while excessively high premiums can strain a limited budget.

Here are the two easy steps to find the ideal car insurance for yourself -

• Determine your requirements: To get the best plan that suits your requirements, you must first be aware of your specific insurance requirements and the desired level of coverage. This will help you identify the features that you find the most relevant in the top options, which can be pretty beneficial considering the sheer number of options out there.
• Obtain quotes: Exploring and shopping around for car insurance quotes is crucial. By gathering quotes from multiple insurance companies, you can actually explore different coverage options, discounts, inclusions, add-ons, and more. By doing this, you can compare a diverse range of offerings and make a wise choice.

Get an Idea for Calculating Your Car Insurance Premium!

In the UAE, the price of car insurance typically ranges from 1.25% to 3% of the vehicle's value. Nevertheless, several additional elements influence the overall cost of an insurance plan such as the driver's age, driving record, experience behind the wheel, and more.

When estimating car insurance costs in the UAE, it's essential to take into account additional surcharges that may apply. Here is a general overview of these charges -

Factors	Cost
Age 23-25 years	25%
Age 25-30 years	15%
Age between 30 and 60 years	10% discount
Driving licence less than 1 year old	25%
Sports Car	20%

Related Links - 

Car Insurance for 19 Year Olds in UAE

Car Insurance for 25 Year Olds in UAE

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