Car Insurance is a compulsory requirement in the UAE. It is illegitimate to drive without an insurance policy in the UAE. If your car insurance has expired and you have not renewed it, one month grace period is provided to renew. Maybe because of your hectic work schedule or unawareness or for any reason you could not renew within the grace period then if you are caught by the authorities you will be penalized and the vehicle will be confiscated. Here in this article, we discuss the steps that you have to take for car insurance renewal if you have expired car insurance.
1. Don’t Drive with Expired Car Insurance
2. Contact insurance agent
3. Documentation
4. Vehicle survey
5. Choose your Insurance policy
6. Purchase Insurance policy
1. Don’t Drive with Expired Car Insurance
Do not drive with expired car insurance this may lead to heavy losses for you. Unprecedented events may come anytime and you may never know when you will meet with an accident. If you meet with an accident, you will not get any insurance, your vehicle will be confiscated and you will be penalised.
If you are driving with expired car insurance and you are caught violating any law, the legal authorities may take serious action. But what if you have to take your vehicle for inspection and get insurance renewal. The solution is to be cautious, drive carefully and avoid over speeding, do not violate any traffic rules and reach your service centre.
Insurance is mandatory for driving a car in the UAE. It is illegal to drive without insurance. If your insurance has lapsed then you will lose the benefit of accrued No Claim Bonus. For every claim free year the policyholder will be provided No Claim Bonus. This benefit will be given as a discount on next premium renewals. Discounts get started at a lower rate and increase year after year.
2. Contact Insurance Agent
If you have expired car insurance renewal immediately contact the insurance agent. The expert advice by the insurance agent would be helpful in reinstating your insurance policy. They can also prevent a situation where you can avoid paying any kind of penalty. The more you delay the more it becomes a difficult and lengthy process . Sometimes even insurance companies will not be willing to provide insurance if there is a delay and you have an old car. The higher the delay the higher the premium and the higher the risk.
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3. Documentation
Once you contact the agent you will be given a list of documents that are required. Firstly you should keep your previous policy handy and a registration copy certificate. Then your vehicle related documents, these include vehicle registration documents which include the details of city of registration, car model number, RTO address and other information.
4. Vehicle Survey
As the vehicle insurance renewal has expired, the insurance company will arrange a person to check the vehicle damages before taking any decision. This survey report will be submitted to the insurance company and based on the report the decision to renew or not to renew will be taken by the company. If there are any major damages then the insurance company will not renew the policy. If there are minor damages then the insurance policy will not cover those parts. The survey associate will fix the deductibles and the extent of damages. The vehicle survey has a prescribed fee that will be charged to the policyholder.
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5. Choose your Car insurance policy
Do good research and find out the policy which suits you the best according to your driving requirements. Evaluate the different plans, approach different insurance companies, get online quotes and compare them. Finally, select a plan which is best according to your requirements.
6. Purchase Insurance Policy
Once you have decided on your plan, get the inspection done and purchase your insurance policy and get going. The validity of the insurance policy is not more than 24 hours. This is the reason that experts advise to purchase the insurance policy as soon as the inspection is completed. Purchasing the insurance policy is the fastest mode and the best option.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
