Traffic fines and black points can increase car insurance premiums in UAE. Learn how violations affect your policy cost.
Car insurance UAE
A spot-on driving record showcases more than just amazing driving skills. A clean driving history also impacts the premium of even the best car insurance in UAE. Having traffic fines, on the other hand, can increase your insurance premium as you are considered a high-risk rider.
It is essential to understand the relationship between traffic violations and insurance premiums. Let’s dive into these implications in detail!
1. Higher Risk Profile
Your car insurance premium depends largely on your risk profile. Insurance companies see you as a high-risk driver if you have multiple traffic fines, as it shows that you are likely to file a claim against your car insurance in UAE. This can shoot up your insurance premium.
Some major violations include -
- Speeding fines
- Illegal parking
- Reckless driving
- Using a mobile phone while driving
- Skipping red lights
2. Loss of No Claim Bonus Discount
No claim bonus discount is a reward you usually get for driving safely. However, here’s a catch - even if you don’t file a claim, accruing traffic violations can make you lose your no-claim bonus discount.
Traffic violations like reckless driving or driving under the influence can lead to the cancellation of your NCB and the denial of renewal discounts. This can again increase the premium.
3. Influence on Comprehensive Insurance Renewal
Your traffic violations have an impact on your UAE motor insurance renewal. In such situations, the provider may offer third-party liability insurance instead of comprehensive car insurance.
While this doesn’t increase your premium, it can limit your coverage. This can actually put you at financial risk if an accident happens and your car gets damaged.
4. Possibility of Losing Add-ons
The provider can deny riders like personal accident cover and roadside assistance as they will see you as high-risk drivers. If you have a record of repeated fines, the insurance company will narrow down your riders list, limiting your coverage.
5. Indirect Impacts of Traffic Violations on the Premium of Car Insurance in UAE
Traffic violations are a direct reflection of your poor driving habits. There are some indirect implications of traffic violations on your premium as well. Unsafe behaviour on the road can also increase your motor insurance costs.
Several car insurance companies in UAE will limit the coverage for drivers who have a suspended driving licence. This, too, results in higher premium.
6. Driving an Unsafe Car
Another traffic violation is driving a faulty vehicle. Driving a car without safety features can increase the premium. Also, cars with unwanted modifications can hamper the car’s safety, leading to a higher premium. It is because insurance companies tend to increase your cover owing to the modifications.
7. Impact of Black Points on Your Car Insurance Premium
Note that all traffic violations are recorded. If you have several black points on your driving licence and vehicle number plate, it can increase your premium. Fewer black points ensure a reasonable rate on the premium. This is why you should keep a check on your black points, so that you get an affordable premium.
To Conclude
Traffic fines have a significant impact on your insurance premium. Violations like speeding violations, driving faulty cars, illegal parking, under the influence, and others can severely affect your insurance. Black points on your driving licence can also increase your car insurance premium. Thus, to get reasonable insurance rates, adhere to traffic regulations, practice safe driving, and ensure your personal and financial safety. To maximise your chances to get a favourable car insurance, compare options on Policybazaar.ae !
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