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 Changing your car insurance company? Keep these tips handy

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Published on September 3, 2021. EST READ TIME: 3 minutes

Getting insurance for car is often a confusing process as there are so many players in the market, each claiming to be the best. And while all players in the Indian insurance market are regulated by the IRDAI to ensure a level playing field, they are still allowed to differentiate their products and services. So, just because you chose the “best” insurance company a few years back doesn’t mean that you will not come across a better one now. Luckily, in such a scenario, you can switch insurance providers at the time of renewal. However, you need to know when it is justified and what are the things you must keep in mind.

When should you consider changing your insurance company?

While continuity with an insurance provider is a good way to get long term value, there are situations when you should consider switching companies.

1. When you are getting a significantly better deal from your new provider.

2. When your current insurance company is unable to provide a cover or add-on that you need.

3. When you find that the service level of the new company is much better than your current provider.

4. If your preferred garage is not in the cashless network of your current insurance company.

5. If you are moving to a different city and your current insurance company is unable to serve you in your new location.

6. When you find the processes of the new insurance company to be faster and more efficient than the current insurance company.

Things to consider when you are switching your insurance for car

Changing your insurance company is a decision that should never be taken in a hurry. If you are looking to move to a different insurance company, you must do a lot of due diligence and comparison before making the payment. Here are a few things you must consider:

1. Consider coverage options:

It is important that you compare the kind of coverage offered by both the companies and see if the lower price of the new company is not because of any lack in the kind of coverage being offered. There is no point in switching your insurance for carto a new company if the cover level is reduced.

2. Check for any penalty clauses:

Before you change insurers, make sure to compare the various penalty related clauses of both the companies. It is not recommended to change your insurance company if your new company has a higher number of penalty clauses, or if the penalty amount is higher or if the threshold of penalty applicability is lower with the new company.

3. Check with your current insurance company:

Many times, insurance companies offer you the choice of price matching if you are offered a better deal from a new company. You just need to check with the sales team of your current provider. Tell them that you are getting a better deal from another company and ask them if they can match the offer. More often than not, they will be able to match the price to retain you as a customer.

4. Check if the new company is carrying forward your No Claim Bonus:

If you are looking to get a new policy, your No Claim Bonus is supposed to be carried forward by the new company. However, it is best to check that the same is accounted for in your policy. This is because different companies have different computer systems, and sometimes, they may not be able to talk to each other properly, as a result of which your NCB may get dropped.

5. Compare quotes from other companies as well:

It is best to compare the policies of multiple companies when you are looking to change your insurer. It is advisable to put in a bit of extra effort to see if you have got the best deal for real!

6. Conduct proper research about the new company:

Switching to a new insurance company should be done after looking into many aspects and not just the amount of premium. Make sure that the new company also has the support and garage network that is equal to or better than your current company. You do not want to change the company providing your insurance for car and then end up in a situation where the service of your new company is not up to the mark.

7. Ensure your policy continuity:

It is important to ensure the continuity of your policy. The best approach is to start looking for a new company at least one month before your current policy expires. In 20 days, you will be able to find a new company with the best deal possible, and in ten days, you will be able to renew the policy.

8. Close your old policy:

While the car insurance stops being valid after its expiry date is gone, it is best to check and confirm with your old insurer about the same. This way, if any auto renewal has been placed, you can make sure that it gets revoked.

9. Print and keep a copy of the new policy:

Make sure you have printed a copy of your new insurance policy and kept it in your car always.

To wrap up, keep the above pointers in mind before switching insurance companies, and avoid doing it in a rush. Also go through your new company’s policy document carefully to make sure you are getting the best deal!

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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