Why Car Insurance Is Important During COVID-19
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Thinking about lapsing on car insurance payments during the COVID-19 pandemic? We strictly advise against it.
It feels like we’re living in some dystopian world. Governments across the world have ordered unprecedented lockdowns as they scramble to overcome the threat of coronavirus within their borders. Schools have shifted to e-learning, many companies have switched to remote working, and only institutions deemed essential are operating on a business-as-usual protocol.
With roads empty of their usual traffic, and citizens practicing social distancing by staying at home; car insurance might be furthest from your mind. In fact, pandemics and global crisis might even push you towards lapsing on your car insurance payment while you’re quarantined at home.
This is a bad idea and a slippery slope. There are many reasons why you should keep up-to-date with your car insurance payments. Here are the most compelling arguments:
You Won’t Be Covered
First things first – if you don’t pay your car insurance you won’t be covered. This means that if you get a scratch on your car, or are left stranded on the road with a burst wheel, your insurance provider will not entertain a claim.
In the eyes of the car insurance provider, you are no longer covered by the policy. Therefore, you must make sure you are up-to-date with your payments.
Yes, you aren’t using your car too much in the COVID-19 quarantine. No, that doesn’t mean it doesn’t need coverage. Do you recall the rainwater flooding that occurred in the UAE in January 2020? Many car owners complained of rainwater damage to their vehicles. Imagine if you had a parked vehicle that was hardly ever used, and therefore, wasn’t insured. It would not have been covered for rainwater damage. Similarly, just because your car isn’t being used doesn’t mean it isn’t at risk. It can be stolen, vandalized, or damaged in a fire.
If you don’t want to pay for repairs out of pocket you should continue paying for car insurance.
Fines for Lapsing on Car Insurance
You must have seen the list of fines issued by the UAE government in case COVID-19 quarantine is violated. But did you know about the fines for driving a car without insurance? Car insurance is mandatory in the UAE. If you go without it, you can be fined. So, what can you expect?
- Dhs 500 fine
- 4 black points
- Your vehicle impounded for a week
To keep up with the law, and to avoid being punished and demerited, you must maintain your car insurance payments. If your policy has naturally come to an end, make sure you renew it. The same consequences will be met out if the policy is not renewed.
You Could Lose Your Vehicle
Another side effect of not paying up your insurance is that you might lose your vehicle. One of the fines for not having car insurance is that your vehicle will be impounded for a week. But if you continue to renege on insurance payments you can find it hard to keep a vehicle. You need to maintain a good record to be thought responsible enough to own a vehicle.
Your Premium Could Go Up
If you renege on your insurance payments you’ll probably be charged a higher premium when the coronavirus pandemic is finally over. Why? Because you’ve demonstrated to the provider that you aren’t a safe investment.
By ignoring payments you put your future policy at risk. You might even lose insurance altogether. Your provider might think it’s safer to drop your policy. When you go shopping for a new policy your record will show that you reneged on payments. Your new insurance provider will feel that you are a risky client. They will offer you higher premiums.
So, mitigate the risk of both COVID-19 and high car insurance premiums by paying your monthly installments.
These are trying times. No one in living memory has gone through anything like this. The world is at risk, and no one really knows how long this will last. But its best not to lose hope. If we give in to the panic and anxiety we’re putting ourselves at greater harm. We would advise that you go about your day as normal as possible. Hopefully, in maintaining business as usual, we can pass through this crisis.
Originally published Apr 06, 2020 16:28:20 PM, updated May 04, 2021