Has your car insurance lapsed or expired? Learn about the next steps19 Sep, 2022
Is your car insurance expired or lapsed? Here is a detailed guide on how to proceed with the next step to renew your car insurance in UAE. Read more.
Car insurance in the UAE is a legal requirement for all vehicle owners. As a responsible driver you should be thorough with managing your payments and renewals. However, there may be instances when your car insurance policy has expired or lapsed. This means that your car insurance is no longer valid due to non-payment or delay in renewal. If you haven’t renewed even after the grace period it can lead to black points, hefty fines and penalties since the UAE is very strict on laws relating to your car insurance.
This article discusses the reasons why your policy lapsed and what steps you need to take next.
Quick Read Section
- What does it mean if your car insurance has lapsed/expired?
- Why did your policy lapse?
- What should you do in this situation?
- What happens if your policy lapses and how can you avoid this in future?
Causes of a lapsed/expired car insurance
Your policy can lapse or expire due to a number of reasons. Most of these can be traced to an oversight or pure human error. Given below are the two main reasons:
When your car insurance premium is not paid in time or at all – the policy lapses. You need to make sure your payment is regular and complete. delays and conflicts Reflect poorly on your record.
Too many claims
There are instances where your insurance provider may reject your request for renewal leading to the lapse of your policy. This happens in case you’ve had too many accidents which has led to too many claims putting the insurance company at a loss.
Steps to take to deal with a lapsed/expired car insurance
- Do NOT drive: The most important point to note when you realize your plan has lapsed, is to stop driving completely. It poses a risk to you and your car both in the event of an accident. But also, there are very strict laws regarding car insurance in the UAE – you cannot drive on UAE roads without a valid insurance policy. Failure to comply by these rules can lead to a fine of AED 500 along with 4 black points on your driving license and sometimes even an impound of 7 days.
- Reach out to your broker: As soon as you’re aware of your lapsed policy, contact your carn insurance broker. They have the appropriate knowledge of what to do in this situation. They will inform you if you have any of the grace period remaining andcan suggest the right way out of it.
- Choose a new policy: Once you’re informed that your old policy cannot be renewed, take this chance to research other plans. With the help of your insurance broker, you can look up more plans and redesign your policy. After comparing the terms of different plans make an informed decision.
- Prepare your documentation: As soon as you’ve decided on a new car insurance policy, make sure you collect all the documents required to buy it. Do not delay this process. Most commonly required documents are vehicle details and registration, valid UAE driving license, passport and visa copy along with your Emirates ID. Submit your documents and make the payment soon after inspection.
- Schedule vehicle inspection: Your insurance company may require a vehicle inspection before issuing your policy if you are purchasing an insurance for old vehicles. They need to be inspected first to assess their condition and the level of damage before the policy is issued. Based on the reports of this inspection, the company decides the amount for the premium and deductible. After it is approved you should purchase the policy without any delay.
Consequences of a lapsed/expired car insurance policy
- Legal: The biggest risk of a lapsed car insurance in the UAE is trouble with the law. If you are caught driving without a valid insurance, you are liable to penalties and pay hefty fines.
- Increased Premium: As you find another policy, you will face higher car insurance premiums. Insurance providers assess your previous records to quote a higher premium considering the higher risk
- No Claim Bonus: A lapsed policy can lead to the loss of your accumulated no-claim bonus.
Make sure you keep a track of your renewal and payment dates to avoid your policy from lapsing in the future. Reach out to our car insurance experts to find the right car insurance plan.