Car insurance is expensive perhaps an unnecessary expense, but you need it for a reason. Have you ever asked yourself why you need car insurance?
Car insurance is required by law that can pay to repair your vehicle after accident depending on the coverage you select. There are certain types of coverage that cover for collision, comprehensive, property liability and bodily injuries.
The debate about car insurance dates back to 100 years. The instance happened in Massachusetts and Connecticut around 1925 when there was a car crash. The crash happened due to the fault of one person and severely damaged the property of the opponent driver. The two states were struggling how to resolve this issue. Apparently, they came to a pooled conclusion that creating insurance will cover up for the cost. However, people were not convinced and were not ready to spend money on the insurance part. Hence after a certain period of time, it became a law and was made mandatory.
Most drivers have the car insurance in the current decade due to the law enforcement. There are many car insurance Dubai online companies which give the best coverage for your needs. Let us see a few reasons to buy car insurance
Reasons to buy a car insurance
Protect you from unforeseen expenses caused by someone’s fault
Although paying car insurance creates displeasure among most customers, yet it acts as a major comfort when you get into an accident caused by a third party.
In the instances of the accident and you being a victim, you will be in need of a surplus amount of money to handle your bodily injuries and also to fix the damages to your car. Apart from the money, it adds more stress and anxiety to the individual making the situation even much worse. Apparently, car insurance helps you financially to compensate for your loss. There are many insurers in Dubai like the Policy Bazaar Dubai who can save your time and money by offering the best insurance rates and protect you and your loved ones from unforeseen circumstances.
Avoid risking your assets and bank accounts
There are hundreds of car accidents happening every day all over the country, and the death tolls and bodily injuries caused to the commuters are steadily on the rise due to speeding, tailgating, and misjudgment of the drivers.
If you don’t have car insurance and be a victim of an accident, imagine what will happen. You need to risk your bank account or sell your assets to keep the situation under control.
For example, what do you do when you break your friend’s favorite toy? You either repair it or replace it with the new one. However repair/replacement cost of the toy would not affect your budget on a bigger margin, conversely, when this is in regard to an accident caused to a third party, then the expenses are going to be plentiful.
It is always recommended to get prepared for the unforeseen situation than risking your property during emergencies. Having the right policies from car insurance Dubai online will protect your finances from unexpected expenses.
Complete peace of mind with no stress
Insurance means protecting you and your property against loss or damage. For those who never had a claim, insurance seems to be unnecessary. However, in the instance of an accident, the situation is very saddening with more stress.
In the current era, the drivers are very unpredictable and drive with less conscience. This may be even due to busy lifestyles and overpopulation. So, accidents have become more frequent. Apparently, car insurance policies like Policy Bazaar Dubai offer financial protection from the driving mistakes of others and offers complete peace of mind for you.
However, there are surprisingly many scenarios that could make your car insurance policy invalid. Let us see some of the shocking seven mistakes that could invalidate your car insurance
7 Costly Mistakes that invalidate your car insurance
Many people are busy holding a job and raising a family, so they hardly find time to shop car insurance. However, due to law, they need to have one with Dubai car insurance online to protect them from lawsuits and save money for unexpected accidents. Conversely, there could be a few reasons for the termination of your car insurance policy
- Committing insurance fraud – Once an insurance policy is issued to the customer, it cannot be canceled except for a few valid reasons. Among the many other reasons, committing insurance fraud is a key element.
Auto-insurance fraud is a multi-million dollar problem where the fraudsters target unsuspecting victims on the road. Committing insurance fraud can result in your policy potentially being canceled. If you are caught by your insurance company attempting to commit fraud, you can expect cancellations from the Dubai car insurance online. In addition, you should be prepared to pay higher premiums in the future.
Car insurance fraud is perhaps an offense under the Federal Criminal Code that falls under treachery, fabrication of accidents or any other dishonest act.
- Non –Disclosure of Car modifications – Car modification can seriously affect how insurers rate your car insurance prices. When you take insurance with any of the policies like Policybazaar Dubai, you agree to declare all the modification you do with your vehicle. However, failing to stick on to your norms will result in nullifying your car insurance policy.
Modification in the car generally increases the value of the car prices. Therefore it is mandatory to make your insurers aware of the modifications and get a revised quote for your insurance policy.
- Violating traffic rules – There are few basic traffic rules and manners you need to follow as a driver
- Overtaking a vehicle from the right side is prohibited
- Driving below the speed limit is an offense
- Drivers should be familiar with reverse skills
- Littering wastes from the car is not allowed
- Publicity or promotional stickers without permission is forbidden
- The driver should have a clear understanding of all the road signs
You need to follow the above-said aspect to avoid termination of your car insurance policy. In addition to this, driving when you are impaired by alcohol, drugs or fatigue can result in serious consequences. When the driver gets the ticket for these offenses, it could nullify their car insurance.
- Default in the maintenance of the vehicle – It is the utmost responsibility of the policyholder to take care of the vehicle. Some people lease out the vehicle for business or personal reasons. However, leasing out the vehicle doesn’t mean that you are not responsible for their repairs.
As part of the lease agreement, the policyholder is responsible for the maintenance of the vehicle. Neglecting the regular maintenance results in safety calls from the manufacturer. Failing to address the safety-related issues in a timely manner put the drivers and the other motorists at risk. This might also lead to saddening accidents and untimely deaths. So, this will end in the termination of car insurance.
- Leaving your car unlocked – 72 percent of car theft happens when the car is not locked. Even leaving a spare key inside the car also result in car thefts. Many countries have a law that makes it illegal to leave your car running unattended. This usually occurs when the car is unlocked. Failure to leave the car unattended or unlocked often results in invalidation of your car insurance because it is due to the negligence of the driver.
- Violating policy norms – Most insurance companies determine the car insurance premium based on a number of factors. The premium rates vary on the usage whether it is private or business use. Commercial policies are much higher when compared to privacy policies. So people often register under private policies but utilize the vehicle on a commercial basis. Apparently, this is illegal. The Dubai car insurance online companies won’t cover the accident when you are conducting commercial activity. These further results in the termination of car insurance policies.
- Renting out your car to someone – The insured vehicle should not be used other than the policyholder. For example, when you lend your vehicle to your friend and an accident occurs at the fault of your friend, then Dubai car insurance online will not pay for your coverage. In addition, it is an offense resulting in the cancellation of your car insurance policy because, at the time of application, you would have confirmed that it is solely for a private purpose.
Failing to adhere to the policy norms results in increased premiums amount or invalidation of your existing policy.
To Sum it up
Obviously, this is not a definite list, and there could also be other reasons like driving in unusual locations, not keeping in touch with your insurance companies, using a middle-man for your services and a few surprising scenarios would also result in nullifying your car insurance. Better late than never, if you are not following any rules before, ensure that you stick on to it to have a smooth ride on your car insurance.
