As you probably know already, one of the main factors in determining the cost of premiums in car insurance is the driver’s level of risk. If for any reason the insurance company thinks that you are a high-risk driver who is going to get into a lot of accidents, they will likely charge you more.
Young drivers are usually considered as high-risk drivers for obvious reasons. So it can sometimes be a challenge to find affordable car insurance for young drivers. In order to help you in facing these challenges, in what follows from Lookinsure mag we have created a guide on how to find the best deal for first time insurers.
Frequently Answered Questions
1. What is the best car insurance for young drivers in the UAE?
The best car insurance for young drivers in the UAE depends on their priority and the type of coverage they want. If affordability is the main priority, third-party liability is the best option; however, comprehensive insurance offers more coverage which includes damages to your vehicle as well.
2. Where to get cheap car insurance for young drivers?
The best way to get cheap car insurance for young people is by comparing quotes from different providers on Lookinsure and other aggregators’ websites where you can get access to a complete list of prices with just a few clicks online.
3. How much is car insurance for young drivers?
While experienced drivers are required to pay 2 to 4 percent of the car’s value for insurance, younger drivers below 25 are usually charged between 3 to 5 percent and sometimes up to 7 percent if they drive a luxury vehicle.
4. Why car insurance is so expensive for young drivers?
Young drivers are less experienced and more prone to distraction and careless driving, all of which makes them quite high risk. Because of this insurance companies usually charge them more for their car insurance policy.
Understanding Car Insurance for Young Drivers
Young drivers between 18 to 25 are usually perceived as high risk by insurance companies as it is statistically proven that they are more prone to accidents. For this reason, insuring a car as a young person can cost considerably more than, say, someone over 30.
However, that must not be cause for dismay as there are ways you can reduce the costs and find affordable car insurance for young drivers as well. We will get into that later on.
Common challenges young drivers face
Now, let’s see what it is exactly that makes insurance companies think that young drivers are high-risk drivers.
Age Risk
Age is among the most important factors in determining a driver’s level of risk. As mentioned earlier, young drivers are statistically proven to be more likely to get into accidents, as they are both less experienced and more prone to act carelessly, throwing caution to the wind to impress their friends.
Type of Vehicle
Another thing that insurance agents pay attention to when giving you a quote is your vehicle type, which can say a lot about your personality and driving style. A 21-year-old with a souped-up sports car showing up to an insurance company surely does not look like a low-risk driver and must expect to hear astronomical quotes from the agents.
Moreover, luxury cars generally cost more to insure regardless of a driver’s age. But again, a young driver with a luxury car is likely to be charged more than the usual amount, since if there is one thing insurance companies hate to do it is paying for a new S-Class rear bumper every other week!
Driving History
Your driving history is very important for insurance companies since from it they can deduce your level of risk. If you have never been in an accident before, you have a good chance of getting a better deal than another driver with a history full of accident reports or traffic tickets for speeding or other hazardous behaviors.
Also, bear in mind that if you manage to spend the entire term of your one-year policy without filing a claim, you will be entitled to an NCB or no claim bonus which means a 10 percent discount.
Tips for Finding Affordable Car Insurance
Here are a few tips for great car insurance for young drivers:
Compare Quotes from Insurance Providers
The best way to find cheap young car insurance or affordable insurance for any driver of any age is to get quotes from multiple companies and compare them. Fortunately, this has now become quite an easy thing to do with Lookinure.com where you can get quotes from different insurance providers with just a few clicks.
You might not think there is a lot of difference between various companies but there is. A Reddit user shares his experience as a UAE driver looking for the best insurance prices for young drivers:
Look for discounts
Another good news for those looking for cheap car insurance for teens is that some insurance companies offer special discounts to young drivers. Some of these discount programs include:
Students Discount
Students with good GPAs are often the target of discount programs launched by insurance companies as part of their incentivizing marketing techniques. So if you are an all-A’s student, you might be eligible for a discount.
Safe Driving Certificates
To prove that you are a low-risk driver despite your age, you can take part in safe driving courses in which participants are awarded a certificate upon successful completion of the course. At certain insurance companies, such certificates can mean cheap insurance for new drivers under 25.
Low Mileage Discount (pay-per-kilometer)
People who don’t drive regularly and use their vehicle rarely can usually get a low mileage discount. There is also a pay-per-kilometer policy in which you will only pay for the distance you drive, which can be a great car insurance for young drivers.
Increase Your Deductibles
A deductible is the amount you agree to pay out of your own pockets in the event of an accident when choosing your policy. By agreeing to increase your deductible you might be able to negotiate a lower price on your premium.
Using Named Driver Option
Older people with clean driving records usually get better deals when it comes to car insurance. So, If you are not going to be using your car often, one of the ways you can get affordable
car insurance for young drivers is using the additional driver option.
For this you will need to ask one of your parents to act as the primary insurance for your car and add you as secondary driver. However, you must know that this will not work if you use the car on a regular basis and can constitute an insurance fraud called fronting which can cause a dismissal of your claim in the event of an accident.
Essential Coverage Options for Young Drivers
Great car insurance for young drivers is not always about affordability. Other factors such as the type of insurance is also quite essential in ensuring your peace of mind. Below you will find a list of different types of insurance policies and their features to help you pick the best one according to your needs.
Liability coverage (Third-Party Insurance)
Third-party liability insurance offers the minimum coverage for your vehicle and only covers the cost of damages caused by your car to a third party. If you are only concerned with making your car road legal, as car insurance is mandatory in the UAE, this is your best bet. However, if full coverage is your top priority, you would be well advised to opt for a comprehensive policy.
Comprehensive and Collision coverage
If you can afford it, a comprehensive policy is the best car insurance for young adults who want to ensure full compensation for damages done both to their vehicle and a third party.
Personal injury protection
Personal injury protection can be appended to your policy as an add-on. This option provides coverage for the cost of damages suffered by the insured driver in the event of an accident. However, if you are looking for cheap young car insurance you might find this option above your price range.
Uninsured/underinsured motorist coverage
There are times when you get into an accident where the at-fault driver’s vehicle is uninsured or underinsured and thereby they are not able to fully compensate you for your damages. This is when uninsured or underinsured motorist coverage comes into place by covering your costs, which may include hospital expenses, damages to your vehicle, or lost wages if you are rendered unable to work because of your injuries.
Recommended Car Insurance Providers for Young Drivers in the UAE
Here is a list of some of the most reliable insurance agencies in the country with packages designed specifically to cater to young drivers.
Learn more about Salama Takaful Insurance
| Company Name | Benefits for Young Drivers |
| GIG Gulf Insurance | Competitive rates for drivers under 25, safe driving courses for premium discounts, and flexible payment plans. |
| Abu Dhabi National Takaful Co. | Reduced premiums for young drivers with clean records, defensive driving courses for discounts. |
| Salama Takaful Insurance | Special discounts for drivers under 25, additional coverage options tailored for young drivers. |
| Orient Insurance | Competitive premiums for young drivers, free membership to safe driving programs, and discounts for academic achievements. |
| Oman Insurance Company | Lower premiums for young drivers, rewards for maintaining a clean driving record, and participation in safe driving programs. |
| Oriental Insurance | Reduced premiums for young drivers with no claim history, additional discounts for defensive driving course completion. |
| Sukoon Insurance Company | Tailored policies for young drivers, discounts for completing driving courses, and flexible payment options. |
| Watania Takaful Insurance Company | Reduced rates for young drivers, rewards for maintaining a clean record, and defensive driving course discounts. |
| Al Fujairah National Insurance Company | Special rates for young drivers, defensive driving incentives, and safe driver discounts. |
| Methaq Takaful Insurance | Attractive rates for young drivers, incentives for safe driving, and participation in defensive driving courses for discounts. |
| Al Sagr Insurance Company | Discounts for young drivers, reduced premiums for clean driving records, additional benefits for participating in safe driving programs. |
| Tokio Marine | Competitive rates for young drivers, rewards for safe driving, and flexibility in premium payments. |
| Liva Insurance | Lower premiums for young drivers, safe driving incentives, and discounts for defensive driving course completion. |
Find Affordable Car Insurance Quotes on Lookinsure
The hunt for affordable car insurance is all about a delicate balance of price and coverage. Using Lookinsre, young drivers can find the cheapest policies without compromising coverage. You can find tailored insurance quotes based on your driving history, age, and car model from the top UAE insurance providers. AFNIC Car Insurance provides top-tier car insurance services, ensuring extensive coverage and exceptional support for your vehicle.
Conclusion
Since young drivers are usually charged more for car insurance, many are looking for ways to get better deals. In this article, we explain why car insurance is more expensive for people under 25 and offer some tips on finding affordable car insurance for young drivers.
