Some people may ask why there is no fixed value for the car insurance premium? The answer is simply that there are several criteria that help insurance companies assess the risks that the insured and his car may be exposed to so that you can determine the total cost of the insurance policy. In general, these criteria may include the following:
Factors related to the insured and the driver: such as age, profession, type of driver’s license, number of years of ownership of a Saudi driver’s license, national address, number of claims, number of accidents, and traffic violations, among others.
Factors related to the quality of the insurance policy: There are two types of vehicle insurance policies: comprehensive insurance and compulsory insurance.
Vehicle-related factors: such as manufacturer, make, model, year of manufacture, parts price, insurance value, and more.
Additional benefits: These are the additional extensions that the insured wants to subscribe to.
The most important factors that contribute to reducing the value of the vehicle insurance premium
There are several factors that contribute to reducing the total cost of vehicle insurance, so we will explain the most important of these factors and how to benefit from them.
Register the driver
A review of the driver’s accident history to assess the volume of traffic accidents caused and the extent of its compliance with traffic rules and regulations is one of the basic standards that insurance companies follow to determine the value of an insurance policy.
Consequently, the more accident-free the traffic log, the lower the cost of car insurance. In the same context, the Saudi Arabian Monetary Agency obliged the licensed insurance companies to grant a discount of up to 15% to the owners of the record-free claims for one year without claims when obtaining compulsory vehicle insurance documents, and the percentage increases by increasing the number of years of the record without claims to reach 30% for three years without claims.
The Corporation also allowed insurance companies to offer this discount on comprehensive vehicle insurance for individuals.
[ How to get 40% off the value of the policy? ]
Age and experience of the driver
Car insurance for drivers under the age of 25 years may be more expensive than other age groups, because there is a greater risk that they will cause traffic accidents. While the cost of insurance may decrease for older age groups because they are more responsible while driving.
In addition, the driver’s experience in driving affects the cost of insurance; for people who have recently obtained a driver’s license, their car insurance is more expensive than those with more years of experience even if they are of the same age group.
The value of the vehicle
The higher the value of the vehicle, the higher the price of the comprehensive insurance policy. Insurance for luxury cars is more expensive than ordinary cars, because the least scratch in them may cost insurance companies a large amount of money.
There are some other factors that determine the car’s value, including the manufacturer, car model, market value, year of manufacture, cost of vehicle repairs, and parts prices. The car insurance premiums that are safer and less likely to cause harm or injury to passengers are also reduced.
There are two types of insurance coverage, the first is compulsory insurance that is based on protecting the financial liability of the insured against damages to others in addition to the expenses related to them, according to the insurance policy, whether they result from the use of the vehicle or its stopping inside the Kingdom.
The second is comprehensive insurance that aims to cover the damages to the insured car and the property of others and related expenses as a result of a traffic accident, and the insured car was the reason for that.
Comprehensive insurance is more expensive than compulsory insurance because of the additional benefits it carries. The value of this insurance may increase or decrease depending on the amount or percentage of the insurance (i.e. the cost borne by the insured in the event of an accident).
The higher the amount of insurance, the lower the value of the policy and vice versa.
[The difference between compulsory and comprehensive insurance policy ]
Additional benefits or expansions
In case of choosing the comprehensive insurance, the insured can choose to add some of the benefits or expansions to the insurance policy in exchange for paying an additional subscription in accordance with the terms of the policy.
These benefits include, for example, the expansion of the geographical area, which provides extended insurance coverage outside the geographical scope of the Kingdom, or the expansion of personal accidents.
We believe that the vehicle insurance premium is subject to many considerations, and if the insured person becomes aware of it, he will be able to choose the insurance policy that suits his needs.
Also, maintaining a traffic record free from accidents and violations in addition to participating in the additional benefits that he needs only will help him to save money and reduce the cost.
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