Car insurance in Pakistan is one of the most important protections for vehicle owners. It not only safeguards against financial loss in case of accidents or theft but also provides peace of mind on the road. One of the most common questions is: What are the car insurance Pakistan rates, and how are they calculated?

At United Insurance, we specialize in offering affordable and reliable motor insurance plans that are customized for your car. This blog explains everything about car insurance Pakistan rates, what affects them, and how you can estimate the cost for your own vehicle.

What Determines Car Insurance Pakistan Rates?

Unlike fixed costs, car insurance Pakistan rates depend on different factors. Insurance companies calculate premiums after analyzing:

1. Car Make/Name – Popular brands like Suzuki, Toyota, Honda, or luxury vehicles.

2. Car Model/Year – Newer cars usually have higher rates due to their higher value.

3. Car Market Value/Price – For new cars, the invoice value is used; for old cars, the current market price applies.

4. Add-ons and Policy Features – Extra coverage such as roadside assistance, zero depreciation, or tracker installation can affect the premium.

Average Car Insurance Pakistan Rates

At United Insurance, we keep our premiums simple and transparent. Our rates are:

• For all cars (new and used): Between 1.5% – 1.8% of the car’s market value.

• For very old cars (e.g., 1996, 2001 models and similar): Rates may go slightly higher, around 2.5% – 3%, because of higher risk and difficulty in finding spare parts.

This means that whether you own a Suzuki Alto, Toyota Corolla, or Honda Civic, your insurance rate with United Insurance will remain within 1.5% – 1.8%—unless your car is very old. This makes our car insurance Pakistan rates some of the most competitive in the market.

Example of Car Insurance Pakistan Rates

Let’s say you own a Toyota Corolla 2023 worth PKR 4,000,000.

If your premium rate is 1.8%, then:
4,000,000 × 1.8% = PKR 72,000 annually

If the car is a very old model like 1996, the rate may be closer to 2.5% – 3%. This shows how car insurance Pakistan rates vary only for older vehicles.

Why Choose United Insurance?

With so many companies offering motor insurance, why should you choose United Insurance?

• Lowest Rates Guaranteed: Only 1.5% – 1.8% for almost all cars.

• Special Pricing for Old Cars: Even for older vehicles like 1996 or 2001 models, our maximum rate is just 2.5% – 3%.

• Customizable Plans: Add-ons and policy features as per your needs.

• Nationwide Coverage: Easy claim settlement across Pakistan.

• Trusted Brand: Decades of experience in motor insurance.

Final Thoughts

Understanding car insurance Pakistan rates helps you make the right decision for your vehicle. At United Insurance, our rates are among the lowest and most consistent in the market—only 1.5% – 1.8% for almost every car. Only in the case of very old cars (such as 1996 or 2001 models) do the rates go slightly higher to 2.5% – 3%.

So, whether you’re insuring a new car or a used one, you can count on United Insurance for the best coverage at the most competitive car insurance Pakistan rates.