When Should You Change Your Car Insurance Company?

When Should You Change Your Car Insurance Company?
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There are many car insurance companies in UAE which offer a variety of insurance policies for your beloved cars. Not just that, you also have an option to switch the car insurance company even when your existing policy does not require renewal. Switching motor insurance companies in UAE can help you save a good amount of money that you might have spent on insurance premium. You can assess all the available option and choose the one which is more suitable and economically convenient. If you have already paid for your insurance on an annual basis and you wish to cancel the coverage mid-year, a prorated refund is given to you by your previous insurance company. But depending upon the company's policy, they might charge you a small cancellation fee.

Before knowing when first let us discuss why should you change your motor insurance company?

Saving money on insurance premium is the primary benefit of changing your car insurance company in the UAE. When you chose your previous insurance policy, it must have been the cheapest in the market but the formulas that the insurance providers use to calculate insurance premium keeps changing often. So it might happen that the insurer that gave you the cheapest price earlier is not a very good option now. In a situation where any circumstance in your life such as buying a new car, moving to a new area or adding a new person in your current policy has affected your insurance rate making them rise, you should definitely be looking at better and more economical options.

Low premium is not the only basis to be kept in mind while switching your car insurance provider. The other factors that can be considered for switching might be bad customer service experience with your existing provider, or if you are attracted towards a perk or benefit that is offered by some other motor insurance company in UAE.  Some examples of such benefits are a loan for a new car, free of charge roadside assistance, gap cover for lease and more.

When Should You Change Your Car Insurance Company?

There might be certain changes in your life which might lead to a big difference in the insurance rates that your company charges on you. For example, your existing insurance provider might offer better rates for single drivers but some other insurance provider might offer better rates for married couples. So if you get married then it might be a good idea to check for better car insurance plans.

You should check for better car insurance deals in the following situation:

  • Before purchasing a car
  • A month prior to the date of your current policy renewal and you receive a new list of rates
  • Whenever you remove or add a driver in the policy especially a teenager
  • When you relocate to a different area or state

Though there is no specific time, another considerable situation to look around for insurance policy is in the years following a driving violation or an at-fault accident. In case your insurance rates were increased due to a speeding ticket or an accident during the last few years, you should check back every few months if you can avail a lower rate as your rates will gradually reduce. But all the car insurance companies in UAE have different criteria of weighing traffic violations and accidents. For example, one insurance provider might cease to penalize you for being responsible for an accident after 3 years, while the other might extend it to five.

Switching the Insurance Company While Having an Open Claim

Changing your insurance company will have no affect your open insurance claim. There is no penalty on doing so, and your existing insurance provider will still pay out the claim as it would have done normally even if you do not have coverage from them any longer. But in such a situation you will be dealing with two motor insurance companies at the same time until the claim is settled. In case you do not want to deal with two insurance companies together, you can wait until the claim is settled in order to switch over.

Switching is Not an Ideal Option If You Were Involved in an Accident Recently

Although there is as such no specific time when you should avoid shifting your insurance company for a better deal but it is not entirely a good idea to switch if you were involved in an accident recently or were convicted of making a traffic violation from the time of your previous policy renewal. Getting a ticket or being involved in an accident can lead to a rise in your insurance rates, but generally, insurance companies only recalculate the premium during the renewal time. So if you have been responsible for an accident today and your insurance policy is not going to be renewed for the next 3 months, then it is another quarter of a year of continuing to pay the old pre-accident rate. While, if you would have changed your insurance provider nearly after the accident took place, the rates offered to you will be based on the incident.

Over to You

Now that you know why and when to switch your car insurance, there is one thing that you should keep in mind. The coverage offered by different motor insurance companies in the UAE will be slightly different from one another. Make sure that you thoroughly understand these differences prior to switching otherwise you might end up in a claim situation where you might not be able to enjoy the savings you intended to make.

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