Increase in Motor Insurance Premiums: What Motorists Should Know

Claim Ratios & Repair Cost Increases

In UAE, motor insurance premiums are not likely only to rise but soar to incredible heights due to a number of factors such as a significant increase in claim ratios and high repair costs. Apart from increased occurrences of accidents and burning costs of vehicle repairs, insurance companies are also bottling up the pressure and thus, it is natural to result in an increase in the financial contributions _of policyholders

Inflation and Regulatory Updates

Beyond the claim ratios and repair cost woes, inflation and regulatory updates in addition are key features in the predicted shocking rise of motor insurance premiums. The increase in the cost of living followed by the introduction of new policies means that insurers need to tweak their premiums otherwise they would not be able to keep afloat financially or meet the industry standards.

Market Predictions and Expected Timeline

The experts forecast that motor insurance premium hikes will progress without a rush through a gradual span of time in the next few months, some of the insurance companies having already communicated their intentions to boost rates. Car owners will anticipate letters from their insurance providers informing on the increment of the new premiums which, in labor pains, can possibly affect the price of their policies at the time of renewal.