Planning to Switch your Car Insurance Provider? When is the Appropriate Time?
If you own a car while living in the UAE, you must also have car insurance. You must have purchased this insurance plan only after carefully analyzing it.
But, do you know you can avail the option of switching your auto insurance providers anytime, and not only when your policy has to be renewed.
Switching your car insurance companies may let you save a considerable amount of funds on your premium. As it is, there are hardly any disadvantages of looking around for the most affordable price.
In case you have made payment for your auto insurance on the annual basis, a prorated refund is offered to you from the old insurance provider if you cancel your coverage midyear.
You may, however, have to bear a small cancellation charge, based on the existing policies of the insurance company.
Why Switch your Vehicle Insurance Company?
The major advantage of changing the auto insurance provider is saving funds on the premiums. Even when you come across the most affordable rate while first signing up for insurance, the formula used by insurers for setting premiums keeps changing frequently. Hence, the provider that offered you the lowest rate 2 years back may not prove to be a suitable option now.
Moreover, in case any such life situation that affects the rates of your car insurance has changed, for instance, you have purchased a new vehicle or added another person on your insurance policy or you have moved, the possibility of finding better rates increases.
Obviously, the low insurance premium is not the sole criteria for choosing the best car insurance providers in UAE. Let’s say, you do not have a very good experience in terms of customer service with your present insurance company. Or your interest lies in a perk or benefit, which is being offered by some other auto insurance company. In these situations, also, you can consider switching.
Some of the other things considered while selecting an insurance provider include complimentary roadside assistance or the gap coverage for the loan or lease on your new car.
When is the Right Time to Change Auto Insurance Company?
There can never be a downside to looking around for better rates than the ones being offered to you currently. Hence, you can search for better prices whenever you think you need to.
However, there are chances you may find a major difference in rates when you experience changes in life that impact how the rates are calculated by the insurance companies.
For instance, your present provider may offer the best prices for single drivers, some other provider may offer better rates for married couples. Hence, if you are getting married, then you can consider shopping around for car insurance.
Following are a few instances when you should look for better deals on auto insurance.
- Whenever you remove or add a driver, specifically a teenager
- Before purchasing your new car
- While moving, especially to some other state
- A month before the renewal of your present policy
There is no specific time; however, one more circumstance when you can look around for car insurance is during the years after a driving violation or at-fault accident. In case your rates have gone up due to an accident or a speeding ticket during the previous few years, it is worth looking back around every 6 months to check if you can avail a lesser price because your prices will decrease gradually.
Now, you must know that all car insurance companies have a different criterion for weighing traffic violations and accidents. For example, a company may stop charging penalty from you for your mistake in an accident after five years when the other companies may stop it after only three years.
You Can Change your Provider While Having an Open Claim
Changing your insurance providers would not have any effect on the open insurance claim that you have. You will be charged no penalty on doing so. In fact, your existing insurer keeps paying out the insurance claim as it would do normally.
However, you must remember that you would be dealing with 2 auto insurance providers at one time till the time the claim has been paid out. If you do not prefer dealing with 2 insurance companies simultaneously, you must wait till the time the claim gets paid out for switching over.
Switching May Not be a Good Idea If you were involved in an Accident Recently
There is no such time when you must completely avoid going for a better car insurance deal. But, the chances of saving money by switching car insurance companies is quite low when you have been involved in an accident or are convicted for a traffic violation from the time of the last renewal of the policy.
Meeting with an accident or obtaining a ticket may cause a rise in your rates, but, the insurers usually recalculate the insurance premium only at the time of the renewal.
Hence, if you are responsible for an accident today and your policy is not due for renewal for the next 6 months, that makes it a half-year of you paying the previous pre-accident rate. On the flip side, in case you change your insurance company just after the accident, your prices may reflect this incident instantly.
To Sum Up!
In order to obtain a better deal on your car insurance, you can switch car insurance companies in the UAE. Whenever there is a major change in your life that may affect your insurance rates, you should start thinking about changing your insurance provider.
If there is a loan or lease on your vehicle, ensure that you inform the lease provider instantly after shifting the insurance company. A lot of car leases or loans need you to have insurance. If the loan provider thinks that you have canceled the insurance, it can take the possession of your vehicle or buy a separate insurance policy in your name.