What is Car Insurance Overlap?

The insurance policies of cars are bound to overlap and this is possible when you are changing insurance providers or switching to a completely different insurance plan. There are many reasons for changing insurance, some of them are changing for better insurance coverage or reducing the insurance premium or others. These kinds of overlaps are protective since they will reduce the risk of driving and provide protection on the roads. 

Insurance Overlap

Having two active car insurance policies which are active for a period of time is called insurance overlap. It will happen when you switch over to a new insurance provider. The insurance policyholder will be paying for two insurance policy premiums. 

However, it will not increase the protection because you can only claim one piece of insurance during the mishap of an event. Only one insurance company will be able to provide insurance protection. Double insurance coverage cannot be provided even if you are paying premiums for two insurance plans. 

It is more beneficial to have car insurance overlap which is short because it will save you from not having insurance cover if there has been any delay in providing protection from a new policy when you are switching to a new insurance company. 

Sometimes car insurance policyholders are aware of insurance overlap but the policy providers are not aware of the car insurance overlap. 

When does your car insurance overlap happen/occur?

On the renewal date, the car insurance plan will expire. This is generally a year or 12 months. Experts suggest looking into the insurance policy and comparing the policy prior to buying a new one. If you are planning to switch over the insurance plan then you can check for the renewal date to find out the duration of the insurance. 

Car Dealer Insurance cover

In the UAE, car insurance cover is provided by default with a new car. This is mainly to avoid problems of finding the best car insurance policy. For the first year, these insurance companies will have their own insurance services. It is important in these cases to have clarity about insurance policies and the renewal dates. When you are missing these kind of details then you are most probably having premature insurance which will result in having car insurance overlap. 

In order to reduce the premiums, couples will prefer to have car insurance overlap. When you are planning to add your car to another car insurance policy then you should first cancel the insurance with the existing policy provider. Some policyholders will anticipate the auto lapse of the policy but it will remain active.

Disadvantages of Car insurance Overlap

The following are the problems of insurance overlap.

Difficulty in getting approval

When there are two insurance providers then it is very difficult to get approval for claims of insurance. The insurance company which was registered with in the initial period will provide coverage in an event of mishap. The policy provider may deny the claim for the reason of violation and this is as per the terms and conditions of insurance. Policyholder cannot get profit from the insurance policy because the true intention of the insurance policy is only to cover the losses

Delay in Claim

If there are 2 active car insurance policies then insurers may delay the process of approval. They will delay in settling the claims; it will result in debate and stress for the policyholder. Being in a stressful mishap situation and already a delay will create more panic for the policyholder.

Extra premiums

Since you are paying for two insurance policies then the premium amounts are high. Paying for two insurance policies will increase the financial burden. When you are canceling the insurance policy you will be getting a refund on a pro rata basis. To avoid any additional charges do not overlap your car insurance. 

Avoiding car insurance overlap

By following the below few ways you can avoid car insurance overlap

Request for car insurance quotation

Find out the new car insurance provider and ask for the quotes then compare the existing insurance policy. By doing this you can evaluate what is included and what you can add any new add ons. 

Purchase car insurance

When you are selecting a car insurance plan you should opt for an effective date. By doing this you are selecting a date from when the new policy can start. If you know when the old insurance date is expiring then you can select the appropriate date for the new insurance policy date to start off. 

Take away

When you are in search of a new car insurance policy at best prices then you can visit the car insurance section. In a few clicks you can find the best insurance policy. Use the insurance premiums calculator for evaluating the car insurance premium amount. It will assist you to get the best insurance plan suitable according to your requirements within your budget.