Insurance is a must-have document to drive legally in the Emirates. Regardless of the driver’s age and experience, valid insurance is a must. That said, insurers offer a wide range of car insurance to cater to the varied requirements of drivers. The coverage and premium of each insurance type vary depending on multiple factors. Amidst these factors, the driver’s age significantly impacts the premium, making it higher for young drivers. In fact, car insurance for young drivers aged between 18 to 25 years is separately offered by the insurer.
Let’s take a closer look at car insurance for young drivers and its impact on the premium.
What is Young Drivers Insurance
Car insurance for teenagers or young drivers is a comprehensive insurance plan specifically designed for drivers aged between 18 to 25 years. Insurance is required when a teenager owns and drives their own vehicle.
Car insurance for youngsters is generally costlier than other insurance plans. For instance, if the car’s value is AED 100,000, its premium will be 2.5% of the total value. However, for young drivers, the premium will be around 2.75% or 3%.
Why is Car Insurance for Young Drivers Expensive?
Now that you are aware that car insurance for teenagers has a higher premium, let’s move towards the core reasons that contribute to the price surge.
High Accident Chances
A majority of young drivers lack driving experience, increasing accident and collision chances. Therefore, insurance companies in the UAE charge a higher premium to cover the damages and exclude any financial risks.
Eligibility for Discounts
Usually, young drivers are not eligible for exclusive offers by the insurer. Therefore, drivers with young insurance plans have to pay a higher premium. For instance, experienced drivers are offered a special discount for making no claims. Young drivers are excluded from such offers.
Limited Credit History
Credit history is a major factor considered by the insurance provider when setting the premiums. That said, young drivers have a lack of credit history which increases the overall premiums.
Driving Habits
Young drivers are often related to impulsive driving habits, increasing accident risks. Although driving habits are subjective, it is often considered a risk by the insurance providers.
How to Reduce Young Driver Insurance Cost
Following are some ways to reduce young driver insurance costs.
Enrol in a Driving School
Enrolling in a driving course is necessary to obtain a driving licence in the UAE. Aside from obtaining a driving licence, young drivers can opt for professional driving courses to polish their skills. Every Emirate has a number of driving schools offering professional courses that you can consider. For the residents of Dubai, here is the list of driving schools in Dubai that they can opt for.
Choose Single-Payment Plan
Paying insurance premiums in lump sum reduces its overall cost. Once you have selected a suitable insurance plan, negotiate with the insurer and pay collectively to avail of the discounts.
Opt for A Car with Driver-Assist Features
Choose a safer vehicle equipped with driver-assist and modern car safety features. These features aid in reducing accident risks, affecting the insurance premiums positively.
Include Driver in Parent’s Insurance Plan
The inclusion of young drivers in parent’s insurance plans is a feasible option. Insurers charge lower premiums for adding a young driver rather than buying a separate insurance policy. However, this might increase deductibles, obligating parents to share repair and damage costs caused after an accident.
FAQs
Do teenage drivers need car insurance?
Yes, teenage drivers are also obligated to have a valid insurance plan to drive legally in the UAE.
Is engine damage covered by car insurance?
No, engine damages are not covered in normal insurance plans. Drivers are required to buy engine insurance additionally to cover the damages.
Can I get cheap insurance for young drivers?
Generally, the premiums of young insurance are higher than other types of insurance. However, there are different ways listed above to reduce the overall cost of premiums.
This was all about car insurance for young drivers. The young insurance plans have higher premiums due to the lack of experience and higher risk of accidents associated with the drivers. That said, to ensure maximum safety, young drivers are suggested to opt for cars with advanced safety and driver-assist features. Browse through these used cars for sale in the UAE and buy a car with advanced features.
Besides, here are some driving etiquettes in the UAE that every driver must adhere to.
Stay tuned to dubizzle’s auto blog for more information on cheap insurance for teens.
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