INSURANCE DIFFERENCES FOR OLD & NEW CARS

Well what I meant to ask when I said 'What is the rationale' behind it, is what is the reasoning behind it, not 'Where's the logic' in it. Logic & Insurance are always known to come into conflict, that's known.

You might call it a weird system. But here's a question.

Have you experienced another Insurance system outside Qatar, one that was based as you mentioned on the Driver's Record, and not on the car value itself?

Now, and I don't mean to bring this up, but it's for the sake of the argument:

For your age group (36 - 45), the insurance system that is based on the driver's record is better for you clearly (age is a factor, one of the main ones in fact, in determining the insurance in such a system).

Furthermore, since you sound like you have somewhat of a good driving record (since you seem to be bothered by by the existence of really dreadful drivers out there, and who isn't anyway), you would probably even get a better premium.

My age group (18-25), on the other hand, simply considers it (or at least I do) a gift from God that the Insurance system in Qatar is based on the value of the car rather than the driver's "profile". I have also experienced the insurance system based on the Driver's Profile, and imagine, just imagine, that I suffered for at least 3 months just to get insurance the first time I was getting it. My driving record was as crisp and shiny as crystal, and just because it was my first time seeking insurance and due to my age, no one was willing to insure me. In my opinion, this is where this system fails (well not fails, but abuses a certain segment of their market). It has no regard whatsoever for the consumers. Think of it even further more. The age group that needs the best and lowest premiums (based on the fact that young drivers at the beginning of their lives cannot afford high premiums), is the same group that pays the most.

Older drivers have maintained a good record throughout their lives? Granted. Give them lower rates. But just don't make the difference in the profit margin off the backs of the youngest age group with skyrocketing premiums. But again, that's the essence of the Insurance System. It's a profit-driven business. Maximizing profits is their main goal at the end of the day. I just find it sad.

Just to add to the formula, you think that after 3 months of me finally being able to get some company to insure me, I had somewhat of a good premium? I won't get into it in detail, but suffice to say, young drivers here (in Canada at least), pay hundreds, literally a few hundred dollars a month just to be insured. Trust me. Check with other people. Imagine paying 1500-2000 QR a month just to be insured. But again, the whole system here is different. Liabilities are a very serious issue. The ticketing system (a multi-billion dollar profit generator) is very very strict and unforgiving (all for profit maximization, who cares about the citizens, let them all keep running the economic wheel).

Don't get me wrong. I am sure that I will become an advocate of the Insurance system that is based on the driver's record at a later stage in life (if I do in fact maintain a clean record). I admit - I will be biased towards it - it's would clearly be in my benefit.

Final note in my opinion to determine whether which system is better for the consumers like you and I alike:

Can i ask you what the average is to insure let's say, a medium-sized Japanese car , in Qatar? Just rough figures. Compare that rate, with the rate that a middle-aged individual with a fairly clean record (not crisp - since that's not the average case) if that individual was to be insured through the system based on the driver's record?

If those two-figures are somewhat close, then long-term the better system would be the one based on the value of the car. That's because if the 2 systems have roughly the same premiums at a later stage in one's life, then why pay a huge premium when you're young. Not to mention -in the system based on the record -, God Forbid even at a later stage in life, you go into an accident, your premium will go up, and one cannot disagree with the saying or even fact that 'Accidents do happen'.

Would love to hear from you, to see what you think.

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" God allows life to be rocky. His challenge is not to let the rocks grind you into dust, but to polish you to become a brilliant gem. "

As far as rationale is concerned, I don't know. But I have been in the Gulf long enough to know not to look for logic. The thing is, cars are not insured as they are in the real world, based on the driver and his/her driving record. Instead it is the car that is insured based on the car's value.

This means you can be a really dreadful driver (and there are plenty around) and you don't get penalised on your insurance. Its a weird system. I have heard of rare instances when cars older than 3 years can be comprehensively insured but this is the exception not the rule.

had better live as we think, otherwise we shall end up by thinking as we lived. - Paul Bourget

That is actually a very interesting rule richard.

I'm actually very very interested in understanding this now:

So I'll give you an example, and you confirm to me whether it's right or not.

If I buy a 2007 model car from a dealership tomorrow, I can have comprehensive insurance on it only until April of 2010?

If I'm keeping the car for longer than 3 years, I have to switch my insurance to 3rd party??

Eagerly awaiting your response.

PS: If the answer is yes, what is the rationale behind it?

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" God allows life to be rocky. His challenge is not to let the rocks grind you into dust, but to polish you to become a brilliant gem. "

I would say either get an old car for QR20,000 or less or a brand new car. As e46 said, you can only get 3rd party insurance on an old car so if you are in an accident and the police say it is your fault, you have no insurance cover for your car. Usually, it is only possible to get comprehensive cover for the first three years of a car's life. So if you want comp cover get a new car.

had better live as we think, otherwise we shall end up by thinking as we lived. - Paul Bourget

New cars need comprehensive insurance, used you can get third party. 3rd party much cheaper but you fix your own car in case of an accident.