Factors to consider before renewing your car insuranceMarch 21, 2023
The RTA law in the UAE states that a car insurance policy is a mandatory requirement if you are a car owner.
If you are on the road without a valid car insurance policy, you can be subject to heavy fines and penalties.
However, all car insurance policies come with an expiration date. Just like you renew your Netflix subscription for uninterrupted viewing, you are supposed to renew your car insurance once every year to keep your coverage active. Doing so will, firstly, ensure that you face no legal consequences, and secondly, give you the mental peace that you are always financially protected from any mishaps.
And, did you know that you can readjust your car insurance features and benefits during renewal as per your new requirements? Here’s a quick guide! 👇
Why Should You Renew Your Car Insurance?
As discussed before, if you are a car owner, you are legally mandated to own a valid car insurance policy. You should review and renew your policy annually to make sure you have the right coverage. Don’t renew your policy just for the sake of renewing it, understand your needs and what the policy offers - so you can get a bang for your buck!
Factors to Consider Before Renewing Your Car Insurance
When you are about to renew your car insurance, you should take the following factors into consideration –
1️⃣Evaluate The Policy’s Features
Before renewing your car insurance policy, go through the features included in your current coverage. This will help you determine if your current coverage is sufficient or if you need additional protection. Evaluate your policy's features and check if you need any extra add-ons. For instance, if you’ve gotten married before the renewal, it makes sense to opt for the Passenger Cover, since your spouse will frequently travel with you.
2️⃣Compare Insurance Quotes
Have a look at the different policies offered by different insurers. While sticking with your current insurance company might seem convenient, it is a good practice to compare quotes from multiple insurance companies. This will help you find better features and coverage at better rates.
For example, John has been with his current car insurance provider for the past 3 years and his policy is nearing renewal soon. However, he wants to make sure that he is getting the best coverage at the most affordable price. So, he gets quotes from three different insurance providers, including his current one. He compares the coverage, premiums, discounts, and other benefits offered by each insurance provider. After carefully comparing all the options, John decides to switch to a new insurance provider that offers better coverage options at a lower cost.
3️⃣Make Use of the No-Claim Bonus
A No-Claim Bonus is essentially a reward given to you by the insurance company for not filing any claim during the policy year. It is a sort of appreciation given to you for practising safe driving skills. If you don’t make a claim, the insurance company will offer you a discount on your premiums during renewal.
Note: Make sure you get a No-Claim Bonus certificate from your insurance company, so you can avail of its benefits if you’re switching to a new insurer.
4️⃣Choose an Adequate Cover Amount
When you renew your policy, make sure you pick a cover amount that suffices your needs. The cover amount is the maximum amount of money you’ll receive in the event of a total loss or theft of your car. Don’t choose any random number as the cover amount. Figure out the secondhand value of your car and pick an amount near it, so you don’t end up facing any major losses if your car is completely damaged or stolen!
How Can You Renew Your Car Insurance?
Visit your current insurance provider's website and enter the required information. Review your cover amount, add-ons, and other features. If you are satisfied with the plan, go ahead with the payment.
If you want to switch and renew your policy with a new insurer, all you need to do is go to the website of the preferred insurance provider or If you want to switch and renew your policy with a new insurer, all you need to do is go to the website of the preferred insurance provider or any broker's website. Enter your information and choose a plan that meets your needs.
Renewing your car insurance should not just be done for the sake of it being legally mandated. It is an important decision that should be carefully considered across factors such as coverage options, premiums, discounts, etc. By taking the time to evaluate these factors, you can ensure that you are getting the right coverage for your needs, at a price that fits your budget.