The authority’s clarification came after repeated questions from beneficiaries who considered the insurance prices be “exorbitant,” in addition to the high deductible, questioning the usefulness of comprehensive insurance in light of bearing part of the repair costs.
Key pricing factors
The authority explained that the pricing process depends on several factors, most notably the characteristics of the insured, such as age, educational level, social status, number of children under 16 years of age, in addition to profession, national address and workplace.
Pricing determinants include elements related to the insurance policy itself, such as the type of coverage (whether comprehensive or third-party), the deductible in comprehensive insurance, the option of repair within or outside the agency, as well as the expected number of kilometers per year and the geographical coverage area.
Driver data and vehicle specifications
The authority indicated that drivers' data plays a key role in determining the price, as each driver's age, educational level, social status, profession, driving license history, and number of years of ownership are taken into consideration.
As for the vehicle, the manufacturer, model, year of manufacture, and insurance value are taken into consideration, in addition to the use of the car, the type of transmission, where it is parked at night, and any modifications made to it.
The authority stressed that these standards aim to achieve fair pricing that reflects the level of risk associated with each case, ensuring a balanced relationship between insurance companies and beneficiaries, and enhancing transparency in calculating premiums and deductibles.
