With a host of insurance providers and policies available in the UAE market, you may be tempted to switch your car insurance company to maximize your benefits. In fact, changing insurance providers is not that uncommon these days as companies are always looking to one-up each other by offering additional benefits and lower premiums to gain new customers.

However, taking a snap decision means you could lose out on the loyalty discount offered by your existing provider. So, is changing your car insurance firm financially beneficial or is it wiser to stick to your current provider? There’s no clear-cut answer to that question, but we can show the pros and cons to help you make an informed decision.

PROS

Wider coverage

This is one of the primary reasons why customers choose to switch their auto insurance providers. Your current insurance cover may not suit your expectations while another firm might offer you much better coverage at a good price.

Lower premiums

You can consider switching over to a new insurer if it offers the exact same coverage at a lower price than your existing firm. For instance, if you are paying a premium of Dh1,800 and the new firm offers the same plan at Dh1,500 after accounting all the factors, it’s wiser to choose the latter.

[Related: How NOT to get stuck with the wrong car insurance…]

Valuable add-ons

Competition is forcing insurers to redefine their plans and accommodate better add-ons to attract customers. Your new insurance provider may bundle your policy with additional benefits such as windscreen breakdown cover, GCC cover, roadside assistance, courtesy car service, etc. Plus, you may be able to snatch a good add-on deal at a better price than what your current insurer is offering.

Better customer service

New companies make an extra effort to win over customers by offering them better support and the personal attention they look for. If the customer service provided by your existing insurance company is not up to the mark, consider making a switch for good.

An overall better deal

Different insurers quote different premiums which are based on several factors. For instance, a company may offer a better discount to young male drivers or women car owners than others. Changing your insurance provider gives you an opportunity to bring down the cost of premiums based on such factors.

Make sure you compare multiple car insurance quotes before you make your purchase.

CONS

No bundle discounts

Customers are eligible for a bundle discount when they buy different types of insurances (home, auto, personal, etc) from the same provider. If you choose to cancel your auto insurance, you will no longer be eligible for this discount.

[Related: 10 Easy Ways to Cut Back On Your Car Insurance Premium]

Missing out on loyalty discount

Insurance companies reward returning customers with generous renewal discounts every year. Switching to a new firm means you will have to establish a fresh business relationship and that you will no longer be able to enjoy the loyalty benefits offered by your old insurance company.

Additional expenses

Despite the perks, you will have to shell out a one-time fee on buying a new policy. Plus, you may also have to pay an early cancellation fee to your existing provider if you end the policy in the middle of the term.