5 Things You Should Know About Car Insurance Renewal

Motor insurance is mandatory no matter where you drive in. This leads you to take it haphazardly from the best to some unknown insurers. Just as it is mandatory it is mandatory also to understand about your insurance policy and the insurer, whom you approach for renewing your car insurance in Dubai.

The below points will give you a comprehensive insight into the whole idea of car insurance:

1. Date of insurance

Due date is the most important part of any insurance. Failing to renew your car insurance on time can cause cancellation of policy, following which your vehicle will be subject to inspection from the insurer's surveyor. And in case you happen to cross 90 days past the due date, you will lose your No Claim Bonus, if any, on your policy and will have take a fresh policy again paying a higher amount.

2. You choose your insurer:

You have complete freedom to choose your insurer at the time of fresh policy or at the time renewal. The premium differs with each company. You can compare and choose what fits your budget.

3. Negotiable Premium

Premium is the amount that you pay the insurer periodically for getting the cover. As said in the above point, premium varies with each company. Since they know that there is a chance of negotiation, they usually give a higher quote initially. So buy insurance only after some bargains.

4. Insured Declared Value

Insured declared value is the value that an insurer give to your car for a given term. It is calculated based on the year of manufacture, depreciation and the claim history. IDV determines the claim amount that you get in the event of any accident. It is directly proportional to your premium meaning, the higher the IDV the higher will be your premium. It is always good to fix the IDV based on the current market value of your vehicle instead of reducing or increasing it.

5. No Claim Bonus

NCB is a discount that you get when you don't report any claim for a period. It increases with year. And you the get this benefit when you renew your car insurance.

Other key factors to keep in mind while renewing your car insurance

Literally, you take insurance as a financial security for your car so that in case of any accident you get your car back repaired or you don't have to bear any major financial loss. So there are a few other things worth knowing before you choose your insurer:

• Check whether the insurer offers cashless or reimbursement facility

• Check whether they have tie-up with service centers

• Check whether they provide pick-up facility with the insurance cover

• Check their claim processing time

And the most important of all is… check whether your policy has any hidden exemptions, which is an unethical way practised by some insurer to give you a competitive quote.

Consider these points before you contact an insurance company for your car insurance renewal.