Why is the Car Insurance Grace Period Important?

Usually, car insurance is valid for one year. After a year of time, the car insurance expires and it is well-known that it is illegal and financially risky to drive an uninsured car in the UAE. Once the insurance expires, the car owners are supposed to renew the insurance with the same provider or a new one according to the requirements, benefits and premium value. One advantage that is provided on car insurance that is closer to the expiry date is the grace period. Once the car insurance expires, insurance providers give a grace period for the car owner to renew the car insurance. 

A grace period is a time period provided on the expired car insurance for the insurance holder to renew it. 

For example, if your insurance expires on December 1, 2021, then an extra time of a few days or weeks is provided for you to renew the car insurance policy. 

It gives relief for the car owners who missed the expiry date of the insurance by any chance. The main benefits of the grace period on the car insurance are, 

• No-Claim Bonus - If you have not claimed your car insurance in the last year(s) then you will be eligible for a discount on your new policy and this is called a No Claim Bonus. When car insurance expires and there is no renewal, the insurance holder loses the No-Claim bonus benefit. During the grace period, you’ll still be eligible for the No-Claim Bonus.  
• Coverage - During the grace period, if there is any mishap that occurs, then you’ll be still eligible to claim the car insurance coverage. 

Duration of Grace Period

The grace period provided on car insurance depends on insurance providers. The grace period can be 15 days to a maximum of 30 days.  

What happens if you don’t renew your Car Insurance?

The main purpose of the grace period on the car insurance is to hold the benefits like no-claim bonus and coverage even after the policy expiry. If you don’t renew your car insurance policy even after the grace period, 

• It is illegal to drive a vehicle without car insurance, so you’ll be fined as per the UAE RTA Law. 
• You’ll not get any financial assistance during any accidents or mishaps to your car or even third-party. 
• You’ll lose the No-Claim bonus you’ve gained so far and will reset to the start when you get a new policy. 
• When you get new car insurance, there can be a car inspection of the car by the insurance provider before renewing the policy. 
• A late fee can be levied by the new insurance provider when there is a huge gap between your old policy expiry and the new policy renewal  

Though you can renew your policy even after the grace period, you’ll not be eligible for the No-Claim bonus and the coverage is required as there is no valid car insurance to your account. Overall, the insurance policy will begin from scratch right from filling in all the details again, car inspection, zero no-claim bonus, etc. 

Car Insurance Policy Renewal Online

Car Insurance renewal is more simple than getting new car insurance. As you already have an insurance policy, in most cases there won’t be any car inspection during the renewal. 

The process of car insurance renewal online during the grace period, 

• Enter your basic details and required details about the vehicle 
• Compare Car Insurance policies in the UAE 
• Pick the right policy according to your requirement 
• Make the payment 
• Get your policy documents hard copies and soft copies  

The process of car insurance renewal online after the expiry and grace period, 

• Visit any car insurance provider website or the office
• Give the basic details 
• The insurance provider will send the inspecting officer to inspect your vehicle 
• After the inspection, the insurance provider will generate a quote for your vehicle