Whether you’re a motorist in the US or an expat in the UAE, you need car insurance. It’s the law.
Many consumers, though, simply renew their insurance policy with the same provider once they’ve taken it out.
That’s because it’s easier. However, it’s smarter to shop around for a new provider. Switching to a new provider can save you money. You’ll find that in certain circumstances, the rates between providers vary a lot. The savings come to those who wait, or in this case who shop around.
Here are some of the reasons you may change your insurance provider.
- An increase in the insurance premium
- The addition of a new, younger driver to the policy
- Buying a new car or planning to buy a new car.
How do you shop around for insurance?
Providing information at your fingertips, the Internet is an easy way to find out more about insurance. Visit comparison websites to find out the best insurance deals.
Contact various providers for the best quote. Go to their website and check insurance policy terms and conditions for hidden extras.
Alternatively, you can visit one of the insurance provider’s branches and do this in person.
How do you change your provider?
When you’ve decided which provider to take out your insurance policy with, contact them and pay for the policy. Once you’ve done this, contact your existing insurance policy to inform them you wish to cancel the policy — doing things the other way round could land you in trouble with the law. You can contact them by mail, phone or by visiting one of the insurance provider’s business branches.
Normally, you’ll need to sign something to officially confirm that you wish to cancel the policy. Send any forms you need to send by special delivery to ensure they arrive. Whatever you do, don’t let your policy expire without requesting your wish to cancel it. This can incur extra charges, not to mention blemish on your credit history.
How can you lower your premium?
- Pay a higher deductible — this is the money you must pay before your insurance provider will pay out any expenses. Pay more at the start and you can lower your premium in the long run.
- Take a refresher course — some insurance providers are willing to offer you a lower premium if, despite being an experienced driver, you take some driving lessons as a refresher.
- Keep your mileage low — some insurance providers offer discounts if you only make short journeys in your car, such as to work, the supermarket or to pick the kids up, etc.
Whether you own a car in the US or the UAE, it won’t stop life taking turns that may affect your finances. Car owners should shop around in the run-up to their insurance policy’s expiry date, or even before that. Convenient as it is to leave your policy to run with your current provider, the smart choice is to look into options with other insurance providers — and give yourself the option of saving money.