What to Do when your Car Insurance Drops You?
Car insurance is one of those things that does not cross a person’s mind except when making the payment, renewing the policy, or filing a claim. Despite it, it is necessary to have it as it is illegal to drive without car insurance in UAE and numerous other countries worldwide.
Interestingly, most car owners tend to continue with the same insurance company for years. They find it inconvenient to look around for better policies or go through the hassle of reading the terms & conditions. Even though buying car insurance online can help avoid the hassle, car owners do not trust the online insurance platforms.
Renewing a policy is straightforward, right? Well, 9 times out of 10, YES! The one time you may find that your insurance provider has dropped you. In other words, they are no longer insuring your car. You would have probably received an email, text, or even a letter informing you of their decision.
Before discussing your next step, let us discuss something else first.
Why Did Your Insurance Company Drop You?
Believe us; it is the next question on everyone's mind. Here are the top reasons why it might happen:
Non-Payment
If you are falling behind on your payments, your insurance company will send you a cancellation notice. Usually, insurance companies in UAE offer customers a grace period. In simpler words, they continue covering the vehicle for a limited period, usually a month. During this time, they expect you to clear your dues. If you are unable to do so, you can tell them of your circumstances. The best insurance companies in UAE or elsewhere will develop a plan that is in line with your financial situation.
Losing the License
If you end up losing your license, suspension, or permanent disbar, the insurance company will cancel the policy. If you plan on continuing driving without a license, please do not, as it can lead to other problems. For more information on why you shouldn’t drive without a license, refer to this blog post.
Medical Problem
If you have a disease that can impact your driving, the insurer can cancel the policy. Medical conditions like heart disease, poor vision, or epilepsy pose serious risks for car owners and others on the road. Therefore, insurance companies avoid taking such a risk and play it safe.
Fraudulent Behaviour
It is a broad term and encompasses a variety of actions. For example, if you file a false claim or enter incorrect information when taking out the policy, it will be considered fraudulent behaviour. Therefore, when buying car insurance, be honest. If the company finds any instance of fraud, you will have to look for another insurance company. When they find out why your previous insurer dropped you, the premium will be considerably high.
Car Modification
If you make changes to your car which the insurer does not approve, they can cancel the policy right away. Before making any changes, please inform your insurer beforehand. If they approve the changes, go ahead. If not, refrain from installing the aftermarket parts.
Now, let us talk get back to our main topic.
Take These Steps After Your Insurance Company Drops You
Relax
Notice of cancellation is not something that will come out of the blue. Most car owners would know well beforehand that they are expecting a cancellation notice. After all, it is the car owners’ behaviour that results in cancellation. Therefore, when you get a cancellation notice, do not panic. What’s done is done, and there is not much that you can do about it. Hence, the logical thing to do is not panic and plan for the next steps.
Do Not Drive
Even if you plan to go to the grocer store, do not take the vehicle. The reason is that you are no longer covered. If you end up in an accident, the cost of repair and other damages might be too much for any person to bear. Apart from this, there is also a likelihood that the police might catch you. Driving without insurance is illegal; it can result in black points on the license, fine, or even jail term. If that’s not enough to deter you, know that the authorities have the power to impound the vehicle.
Get Quotes
Look up the best insurance companies in your area and get quotes. You will notice that the quotes are much higher than what you were paying before. Well, the reason is that the insurance companies consider you a risky investment. Therefore, to offset the risk, they charge more. Do not worry because if you make payments on time, avoid fraud, and drive safe; the premium will come down eventually. Do not go for the cheapest quote. Why? Please refer to this blog post for the answer.
Finalise
After comparing the quotes, finalise the policy that you find best. Unfortunately, you might not be eligible for any discounts due to your past behaviour. Once you finalise, please commit to being a responsible customer and car owner.
Final Thoughts
In conclusion, all we have to say is communicate with your insurance company regarding everything. If you are unable to make payments or face other problems, communicating with the insurance provider can lead to solutions.