Should You Stay with the Same Car Insurance Company?

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The importance of a good car insurance plan is realised only when you need it the most. Having a proper comprehensive car insurance plan offers an assurance that your investment in your vehicle is safe in case of an accident, theft of your car, or vandalism. In such situations, the car insurance company in the UAE pays for related expenses. Moreover, a majority of the insurance agencies offer several other benefits that motivate their existing customers to keep their car insurance policies active with the current provider only.

Best Car Insurance in UAE

Some of the best and the cheapest car insurance quotes in Dubai are:

*Above mentioned prices are for Nissan Altima S2.5 L, 2017 model.

KEY TAKEAWAYS

  1. Among the most crucial benefits of car insurance is the confidence that you get, in that your vehicle will be financially protected in case it is damaged due to an accident or is stolen or vandalised.
  2. With a majority of insurance companies providing incentives and loyalty programs to clients so that they retain the company as a provider, it becomes convenient to renew the plan. However, while switching vehicle insurance companies may have a variety of risks, it can always prove advantageous if you get access to better and more suitable features at more efficient costs.

Besides the provision of benefits, policyholders also stick to the same routine around renewal due to its convenience, loyalty benefits, and numerous advantages granted on renewing your insurance coverage with the same company. At the same time, there are a number of risks and disadvantages involved with vehicle insurance loyalty in certain cases. 

To decide whether to renew the same car insurance or opt for a different one, keep reading below.

Types of Car Insurance Plans in the UAE

Following are the features of a good insurance plan:

  • Injury Liability: The bodily injury liability insurance covers injuries caused by you, the authorised driver or the insured, to others. Notably, this is also valid when the insured individual drives another person’s car with their permission. It is highly recommended to have at least liability insurance, as you could be prosecuted for a massive amount of money if you’re involved in a serious accident. To be on the safe side, policyholders are advised to buy liability insurance for more coverage than the minimum one as specified by the law, as it could prove helpful in protecting your finances.
  • Personal Injury Protection: This insurance offers cover for the medical procedures related to injuries sustained by the policyholder's car's driver and passengers. Moreover, the Personal Injury Protection plan can also cover hospital expenses, missed wages, funeral costs in case of demise of the policyholder, and so on.
  • Uninsured Motorist Coverage: If you are hit by an uninsured driver or a person who doesn’t have sufficient insurance to cover your whole loss, the uninsured motorist coverage will provide you with the required compensation. This coverage also protects you if a covered driver is involved in a hit-and-run or if you are hit by an underinsured driver as a pedestrian.
  • Comprehensive Coverage: This type of plan compensates you if your vehicle is stolen or damaged due to accidents and other events. Fire, earthquakes, windstorms, hail, floods, vandalism, riots, or encounters with animals are all covered under such a plan. 

Benefits of Staying with the Same Car Insurance Company

Staying with the same car insurance company in the UAE is beneficial for several reasons. Insurance companies use various incentives and bonuses to attract and retain clients. Most rewards are given once a consumer has been with the insurance for the specified period, and these may increase with further duration. 

Given below are the key advantages of staying loyal to an insurance company:

  • Trusted Relationships: Developing a mutually trustful connection with your insurance company can take considerably long time. This trust will come in handy when you are in an adverse situation, like when your car gets stuck in a desolate area or when you are involved in a serious accident. A seasoned company will be more acquainted with your driving pattern and claim history and can be better equipped to comprehend the scenario and provide the required assistance.
  • Reduced Deductibles: Several insurance companies may provide you with a discount if you stay with them for a long time. They may reduce your deductibles or even waive them entirely. Deductibles refer to the amount that you pay on your own in the event of a claim before your insurance company reimburses you.
  • Deductibles are chiefly divided into two categories: mandatory and optional. While your premium is generally unaffected by the mandatory deductible, you can avail of better coverage and benefits with reduced optional deductibles if you are a loyal customer.
  • Option of Accident Forgiveness: This is a perk available to committed policyholders who have a clean driving record. Simply put, your insurance provider will ‘forgive’ or overlook your first where you are at fault. As the accident will not be recorded in their records for the purpose of premium, your insurance premium will not be increased. However, the ‘accident forgiveness’, unlike a ‘No Claim Bonus’, cannot be switched to a different provider.
  • Saves your Money: Besides all these mentioned benefits, another advantage of staying with the same insurance plan is that switching to a new insurance company can come with several hidden charges. Consequently, besides the premium amount, you may also have to pay policy charges and other indirect costs for a new policy, rendering the switching of plans costlier than your calculations.
  • Ease of Policy Renewals: While the described perks are great, the convenience of renewal in itself is an excellent benefit of renewing your auto insurance policy with the insurance company. If you go with the same firm, all you have to do is visit their website or download their mobile application and complete your renewal easily. However, if you move insurance companies, you will need to supply facts about your vehicle from the start to renew your policy. Some insurers will also inspect your vehicle before issuing insurance, thus, making the switch a time-consuming process.

Drawbacks of Staying with the Same Insurance Company

While the convenience and several offered benefits make renewing your current auto insurance an attractive option, it is often worthwhile to explore the other options. Take a look at the disadvantages of sticking with the same company for a long period.

  • Different discount options neglected: When you extend the same auto insurance policy for a long time, your advantages remain essentially the same. However, if you look into the different options available, you might be able to discover a policy that provides the same coverage at a lower rate. Furthermore, several insurers provide special offers to new subscribers, which you should take advantage of.
  • Insufficient insurance coverage at times: When you update your insurance every year, it is crucial to go over your policy paper and double-check what is covered and what is not. This way, you will know if your present plan is still relevant to you. This is especially the case if you recently experienced a major life transition such as purchasing a new automobile. You should re-evaluate your plan at such times to see if switching insurers would benefit you.
  • Substandard claim service: Ultimately, you will get the best idea of an insurance company’s services only when a claim is actually made. Claims that are processed swiftly and without complications make for a hassle-free experience. However, if your experience has been negative, you should consider switching to a new insurance company as the unpleasant experience can also repeat in the future.
  • Add-ons: Several add-on covers, including breakdown cover, passenger coverage, and zero deterioration coverage, may be available with your existing insurance carrier with a comprehensive policy. However, other insurers may offer a far larger selection of add-on coverage. This aspect is beneficial for users seeking additional coverage due to added needs or conditions. While these add-ons will raise your premium amount, they will provide you with more extensive car protection.
  • Missing other service benefits: In some cases, you may discover that a new insurance plan provides significantly greater service benefits. While the procedure to get that plan may need a lot of paperwork and even an inspection of the car, it may all prove rewarding if you get to avail of better and more diverse services.

More Situations to Consider

Besides the advantages and disadvantages illustrated above, the following are some situations when you should consider changing your insurance carrier:

  • You have recently moved to a different city or state
  • Your car is going to get a new driver soon
  • You have discovered an insurance service that supplies significantly better benefits at a lower cost
  • The premium for your coverage has gone up

Listed below are the situations where you should not change your insurance company:

  • You are satisfied with the rewards provided by your current employer
  • Your present company provides excellent customer and claims support
  • You would not want to squander your savings

What to Look for in a Car Insurance Company?

Carefully examining the key aspects of the insurance company at the time of purchase can prove beneficial in making a decision regarding the company to be selected for renewal. 

Here are the factors to consider when looking for the right car insurance company:

  • Know your needs: You must first analyse your particular needs and financial position before choosing the best vehicle insurance company. Examining your situation might help you narrow down your selections and concentrate on one plan that offers the protection you require.
  • Look for insurance plans that comply with your needs: Several leading major vehicle insurance providers, which may be accessible throughout most of the country, may provide decent services. On the other hand, a smaller vehicle insurance company can provide better services albeit in a smaller area, for instance. Ultimately, with a vast range of plans available in the UAE, you can always get a plan that specifically fulfils your demands.
  • Explore third-party ratings: You can always utilise third-party ratings to have a better idea based on expert examination when looking for organisations as per client satisfaction and financial capabilities. Employing third-party information in your research allows you to take a more comprehensive approach with concrete facts when selecting a supplier.
  • Know your Experience: Another factor to consider in your inquiry is how easy is it to contact the provider once you have purchased a policy. If you are tech-savvy and prefer to complete procedures digitally, selecting a firm with a strong digital app that allows you to pay bills, request adjustments, and file claims, may result in better satisfaction with the policy plan. 
  • Compare the Quotes; The average price of auto insurance varies greatly as per the insurer, depending on numerous criteria like the type of car you drive, your driving history, selected coverage amount, and so on. Comparing the carriers, besides revealing the price differences, also elaborates on which carriers provide the coverage and discounts that you require as per your requirements.
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