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July 18, 2021

Can I Transfer My Car Insurance if I Switch Cars?

Car insurance is the most important part of owning a car. But what happens when you plan to switch cars? Will the old policy apply? Or will you be required to apply for a new one? Read more...

If maintaining and caring for your car is essential to lengthen car life longevity, car insurance for protection is equally essential to be shielded from unprecedented losses or damages. Car insurance is a fundamental part of owning a car and can be easily overlooked as unimportant or set aside to acquire later.

Why do you need car insurance?

In the unfortunate event of an accident, an appropriate car coverage plan would assist you in unprecedented times of need. Primarily, car insurance could help you avoid the need to pay out of your expenses, should either party sustain property damages or injuries of any sort. So you essentially (and conveniently) save yourself and others from avoidable trouble in a few simple steps.

As such acquiring car insurance in the UAE is mandatory by law and could be a punishable offence if found without the possession of one. This is mostly because a car insurance cover is supposed to protect you, your car and look out for others on the highway.

 

However, given that you are insured throughout the year, what happens when you plan to switch cars or buy a new one? Does the same insurance apply? Or would you have to re-apply for a new one on new terms?

If you plan to switch cars in the UAE, it is unlikely that you would have to cancel your existing policy and re-apply for a new one. However, it is advised that you communicate with your insurance provider if you require car insurance transferring policies if you switch cars.

 

Start with informing your car insurance provider as soon as you plan to switch cars. If you know the type of car you want, update the insurance provider about information such as the car brand, model, year and more, depending on the type of car.

Your car insurance provider will verify if you require any other changes to your policy. They will then evaluate and provide a quotation for the value of your new premium. Note that it is very unlikely that the cost of your insurance would remain the same so expect changes in the price of your premium. If you wish to proceed and the new premium price has increased, you may be asked to pay the difference.

It is improbable that your insurance provider may cancel your existing policy for a new one, however, expect changes in price and terms and conditions of the policy.

Things to remember when transferring car insurance:

  • Under most circumstances, you will not necessarily be expected to continue with your existing car insurance provider. You are free to explore and make comparisons with other insurance providers and opt for one with a better plan overall.
  • Expect changes in policy premium or price. As said, it is unlikely your premium will remain the same after a transfer to another vehicle of your choice. So prepare for any changes that may come, and know that you are free to make comparisons between different providers.
  • Keep an eye on the premium or price increase (if any) should the car you have chosen be of more value. If the car chosen contains spare parts that are difficult to source and higher maintenance values, your premium may likely increase.
  • If you decide to go with your existing car insurance provider, ensure that you pay attention to the terms and conditions section of your policy, should you come across points that you may find either confusing or doubtful? If you have any inquiries, your insurance provider will be happy to clarify them for you.

 

Again, you may not necessarily require a cancellation of your car insurance policy to transfer policies to another vehicle of your choosing. It requires only a few extra steps, starting with informing your insurance provider of details of the car you wish to switch to. Whatever your chosen car may be, ensure that you give maximum car protection through routine car maintenance, care, adherence to safety regulations and a suitable car coverage plan.

Whatever vehicle you may drive or commute in, ensure that you and your car are both safe and are ready for the road. Remember that safety always comes first.

 

Ensure optimum car protection and buy car insurance online here at Gargash Insurance for plans made for your specific needs.

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