Things to Remember when Renewing a Motor Insurance Policy

According to Neeraj Gupta, CEO, Policybazaar.ae - Car insurance is essential to protect you financially when behind the wheel. Though it is a mandatory requirement in the UAE under RTA law, car insurance is still something you don’t want to be without so that you can enjoy its benefits. Your car insurance policy is your safeguard against damages, theft or third-party claims and gives you peace of mind while you’re driving on the road. If you fail to renew your policy, you lose on these benefits. 

Neeraj Gupta, CEO, Policybazaar.ae

Most car insurance policies are valid for a year (12 months) but in UAE the traffic department provides you with a one-month grace period i.e. 13 months to renew your car insurance policy. Getting your car insurance renewed before the due date is not just important, but also as a failure to do so would lead not just to an expiry of your insurance policy also, a lot of other complications too. 

Consequences of not renewing your car insurance policy on time:

• In case you fail to renew the policy before its expiry date, the policy will lapse. If you do not have car insurance, you are legally not allowed to drive in the UAE. You will also have to pay a heavy fine due to non renewal of your car insurance policy.

• You might lose your previously accumulated No Claim Bonus, which would then result in higher renewal premium, after the expiry of the previous policy.

• You have to get your vehicle inspected once again before you get a fresh car insurance policy.

• In an unfortunate incident, if you have an accident without a valid insurance policy, you will have to bear all the expenses by yourself. Additionally the driver will get fined for driving the car without renewing the registration and a valid car insurance policy

Thus, when it's time to renew your car insurance, it is advisable that policyholders should get proactive. Instead of simply hitting the ‘auto-renew’ option and continuing with the existing car insurance, it is advised to do some research and compare your options to find a good deal. Apart from the standard cover, car insurance companies offer many useful add-ons which help in building a complete protection plan for your vehicle. The five insurance add-ons that are most required are - accident cover for driver and passenger, roadside assistance, car replacement or rent a car, agency repair for the first 4 years of car age and premium garage repair for older cars. One should be careful while choosing add on services because these provide additional protection to your vehicle and save a lot of money.

Some more tips to save money when you renew your car insurance policy in UAE.

• Compare Other Providers - Wisely using time for research and to compare multiple plans online is a simple process and will ensure you get the best deal in your budget.

• Evaluate New Policy Features - Since your last renewal, there can be more benefits available to the policyholder by the insurer. So, policy renewal is a good time to add or opt-out for some new features. 

• Avail No Claim Bonus - With every claim - free year, the insurance provider rewards the policyholder with NCB or a no-claim bonus. Remember to apply for a no-claim bonus certificate from your insurance service provider to take advantage of any potential discounts.

If you’re renewing your car insurance policy with a different insurance provider you’ll need the following documents to ensure a hassle-free renewal process.

• Valid UAE driving license 

• Latest Car registration card/mulkia copy

• No claim bonus certificate

To be on the safe side, renew your car insurance policy well in advance. If you were unable to do the same within the stipulated time, be sure to follow your insurance company’s guidelines.