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Car insurance overlap happens when you change the insurance providers or swap to a different plan. There can be several reasons for switching, including improved coverage, reduced premium rates, and more. Since driving on streets without insurance is unsafe, such overlaps are sometimes required. It may take some time for the new policy to be active.  However, if you want to prevent car insurance overlap, you may do this by strategically determining the activation and cancellation dates.

What is Car Insurance Overlap?

A car insurance overlap happens when an individual has two active car insurance policies for a specific period of time. Usually, this happens when you switch your insurance policy to a new plan or change your insurance provider. Over time, you will be paying for two insurance policies. However, this does not provide dual coverage. In case of an accident, you are only eligible to file one claim, and only one of the insurance companies can process that claim. Even if you pay premiums for both plans, you won't be eligible to get double coverage.

Generally, a short car insurance overlap is advantageous since it prevents you from driving without coverage if a freshly acquired insurance policy is assigned later. Let's answer a few frequently asked questions now.

Is it Possible for Car Insurance to Overlap?

Yes. And there are several reasons for this. Some car owners are aware of the double coverage, while others are unaware of the two active car insurance plans which are operating together.

When Do These Plans Overlap?

When Car Insurance Policies are Combined 

To save money on car insurance, most couples opt to combine their plans. If you want to add your insurance plan to another car insurance policy, you must discontinue the current one first. If you don't, you might end up with an overlap. Some customers expect the insurance to lapse automatically, yet it stays valid as long as the premium is paid.

When You Have Car Dealer Insurance

Some car dealers in the UAE include insurance coverage with a new vehicle by default. This is to avoid the trouble of locating and purchasing auto insurance. Some of these dealerships have insurance businesses that provide free first-year coverage. In such instances, it's critical to have a clear understanding of insurance plans and renewal dates. If you ignore such information, you're likely to make a hasty insurance purchase, which might result in auto insurance overlap. 

When you purchase a new car insurance policy before your old one expires 

The car insurance policies expire on the renewal date, which is normally a year after the due date, not even a day before. When choosing car insurance in Dubai, it is the best choice to research and compare options. However, if you want to switch to a better plan later, you'll need to check the renewal date to see how long the overlap will last.

Is it Possible for Car Insurance Overlaps to Create Problems? 

You can encounter problems if the overlap lasts for a long time. Here's everything you’ll need to know about it:

Extra Premiums 

When you have car insurance overlap, the most obvious problem you will encounter would be this. You must pay for two insurance policies when one would do to cover any potential loss or damage to your car. Even if you wish to terminate an existing insurance coverage, you can only obtain a pro-rata return. So, to prevent paying any additional fees, make sure your auto insurance policies do not overlap.

Delays in Filing A claim

If there are two current automobile insurance policies, both insurers may try to demonstrate why they should not be held liable for the loss. As a result, there may be a delay in the claims being resolved. This usually occurs when one plan provides more comprehensive coverage than the other. It can result in a lot of disputes, which adds to the tension of an already stressful situation. To minimize any delays, just have one auto insurance policy active at any given time.

Difficult Claim Approvals

When two insurance companies are involved, filing claims and getting them accepted can be complicated. Typically, the buyer's previous insurance carrier must reimburse damages in the event of an accident. The supplier, on the other hand, has the right to reject a claim if the conditions have been violated. Having two active insurance plans, according to the policy conditions, allows the policyholder to benefit from the claim, even though the insurance policy's primary purpose is to cover losses.

Steps to Avoid Car Insurance Overlap

Obtain a Car Insurance

After you've decided on a vehicle insurance plan, you'll need to choose an effective date for your new policy and pay your first payment to finish the transaction. Your insurance policy will be active when you make a payment, and you can cancel the previous one without losing coverage.

Cancellation of a Draft

At the same day that your new vehicle insurance policy is active, you must file a cancellation request for your old one. Make sure you send the request to the insurance together with all of the appropriate documentation based on the insurer's policy terms. You must submit documentation of duplicate vehicle insurance coverage if you are asking for a backdate cancellation. Once you've finished, you can request a pro-rata refund.

Requesting a Quote

Look for a new vehicle insurance company and get quotations with coverage amounts that are appropriate for your financial situation. Remember to mention the add-ons you intend to purchase in your final review. It's critical to be open and honest about your driving history, habits, and previous claims. Any inconsistencies in the information given might prolong the approval process.

Final Thoughts

If you're seeking a new car insurance policy at a fair price, simply research on some plans on motor insurance online. You can also get the best quotes that is suitable for you by visiting policyhouse.com.