InsuranceMarket.ae Forecasts Auto Insurance Developments – Khaleej Occasions
InsuranceMarket.ae's automotive division has been closely monitoring the situation to ensure customers are getting the best deals
With Dubai really open to business and Expo 2020 Dubai just around the corner, traffic has increased both in the air and on the streets this year. Life at InsuranceMarket.ae has also continued with the “new normal” and the company has seen some interesting trends emerge.
The appearance of the "Covid Chrysalis" has led to a resumption of driving and has a direct impact on vehicle insurance in the UAE. Getting back on the road means some drivers will be making claims again too, and InsuranceMarket.ae has seen the number spike compared to 2020, which inevitably affects prices.
During the height of the pandemic, UAE auto insurers and the insurance agency took an unprecedented and pragmatic approach to premium pricing and decided to cut minimum premiums by around 30 percent. However, the spike in claims in 2021 coupled with the increased frequency of use has resulted in some insurers now starting to raise their prices, which the company said was expected.
InsuranceMarket.ae's automotive division has been closely monitoring the situation to ensure that the best deals can continue to be found for customers. It turned out that the increases applied are gradual and mainly applicable to such policies in the “low cost / minimum premium” area. The company also notes that despite these price increases, we're still not at pre-pandemic prices: the increases are typically only between 10 and 15 percent. The average total costs are now Dh 1,300 compared to a price of Dh 1,700 before the pandemic. InsuranceMarket.ae's message to customers is that there are still deals out there if you ask the experts, and that as a regulated industry, insurance costs are rising steadily and sensibly, just like driving your car should be.