Rent a Luxury Car in Dubai - Owning a luxury car is fun, but it also comes at a cost. Starting from the initial purchase to its maintenance and insurance, you need to have a deep pocket to manage it.
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The answer to these questions depends on the car insurance companies in Dubai. However, generally, it is not a good idea to be dependent on the grace period. It is always better to set proper financial habits so that you can make your payments on time every month.
A grace period is the time you have to make your car insurance payment after the original due date. If you pay within the allotted grace period, you do not face a lapse in your car insurance.
Many car insurance companies in Dubai offer grace periods during which you are not penalized. However, they vary from one provider to another and are not the same for all. Grace periods are very convenient, but it is vital not to overuse them. You can put yourself in a difficult spot in the future if you become dependent on your grace period.
There is not a set grace period offered by all the car insurance companies in Dubai. It varies from provider to provider. Some companies offer a short grace period without any late fee and an extended grace period which charges a late fee. It is good to check with your insurance provider about the terms of your car insurance policy beforehand.
Some insurance companies in Dubai allow the insured to use the grace period every month. However, it is not a very good idea to do so. If you use your grace period for the payment of your policy every month, it can create negative consequences in the future to your policy, such as:
Accidents can happen at any time, even while your grace period is going on. Lucky for you, these claims are covered. However, many insurance companies will not proceed with the claim until you make your monthly payment. It is a lot of cash to come up with if you have to pay your late payment, current month’s payment, and the deductible if any for the claim. This is another reason why you should be caught up with your payments and avoid using your grace period.
At the end of your grace period, your insurance policy can be stopped by the car insurance companies in Dubai. This means it is against the law to drive your car, as the law in the UAE makes it compulsory to drive with car insurance.
This means if a car accident takes place even one day after your grace period, you are absolutely on your own without any coverage from the car insurance companies in Dubai. If you are caught driving without car insurance, it can cost you a heavy penalty and black points will be added to your driving license.
If you want to get car insurance again, the insurance providers will charge you a higher premium than the one you were paying on your previous car insurance policy.
The Bottom Line
If you are not very keen on the date your payment due date falls on, you can request the car insurance companies in Dubai to change it and give you another date. You can opt for hassle-free payment options such as paying online directly with a credit card. Do not depend on your grace period for your monthly payments, it will end up costing you more in the end.
Always remember: A grace period exists to help you in case of emergencies, and shouldn’t be considered as an actual due date.