Your Guide to Switch The Car Insurance Policy

Are you keen to switch car insurance companies? The inevitable reason for this is that you’ve found better and cheaper car insurance plans than your existing one. While comparing car insurance online, you may find a better deal and switching will help you save more. Although it sounds easy, changing insurance companies should be an informed decision. This is why we’ve compiled a few tips to help you make the right decision when switching insurers. Let’s have a glance:

Find out ‘WHY’

Many want to change the insurer without thinking of the actual reason. It can be the poor customer care service, a website interface that made it a horrible experience for you, or lack of additional covers. Whatever it is, there should be a valid and solid reason.

Selecting a New Insurance Company

It is the most crucial yet tedious task. However, with the help of the internet, you can look for insurance companies in the blink of an eye. There are various comparison websites available online where you can obtain insurance quotes. Make sure you request for the quotes based on your existing car insurance coverage and levels. These sites compare various car insurance quotes for you and help you get the best deal online. It is the easiest and the most hassle-free way where you aren’t required to visit the insurance office.

Claim Settlement Ratio

You look for an insurer with an excellent claim settlement ratio. If the insurer doesn’t fulfil your requirement at the time of making a claim, the premium paid by you goes to waste. Therefore, it is necessary to check the claim settlement ratio of other insurance companies before porting the plan. If the company maintains a higher claim ratio, it means they have settled a large number of claims. Hereby, at the time of looking for an affordable plan, don’t compromise on the reputation of the insurance company in terms of claim settlement.

Premium is Concern

Car insurance is a contract between the insurance and the insured where the policyholder needs to renew the plan time to time. The only way to do so is by paying the premium and continuing with the same policy coverage. However, sometimes the premium amount may appear as burden owing to the situations like loss of a job or during a medical crisis which restricts your finances and may stop you from paying the premium on time. When you can’t afford a lapsed policy, the only option that left is to change the insurer to avail a plan with a cheaper premium.

Opt for Smart Additional Cover

At the time when you are looking for a new insurer, you should analyse the add-ons benefits offered by a particular insurance company. Go for insurers, who offer adequate add-on covers such as NCB protector, zero depreciation, engine protector, windshield glass cover etc. This is a prudent choice, which helps you save on premium as well. For example, you can opt for TATA AIG car insurance and in order to boost the policy benefit and save on premium, you can add Zero Depreciation cover to your base policy.

Keeping the Insurer in loop is a Must

When your search is on full swing, don’t forget to keep the existing insurer in the loop in every decision you make regarding the plan. This is beneficial too, as the insurer will try to negotiate or may come up with better deals in order to meet your requirements.

Tips on Cancel the Policy

  • Doing everything in writing is a must while going to cancel the old policy. Even if your insurer doesn’t urge you to do so. This is the best way to avoid confusion in the future and maintain the record properly. Leave no room for confusion when you wish to terminate your existing plan.
  • Before cancelling the old policy, make sure the new one is active. It would be nightmare come alive if you realize that you’ve cancelled the old policy, but the new one is not active. Or, the premium you were quoted is different from what you’re charged afterwards. Such a situation would leave you perplexed about whether to look for another policy, or stick it out with the old one with a higher premium rate.
  • Sometimes, the old policy is cancelled retroactively, when you start a new policy and forget to cancel the old one. You will have to ask your insurer whether the policy is on retroactive cancellation mode or not. If yes, then you’ll have to provide a copy of proof showing the policy initiation date of the new insurance policy.
  • Moreover, at the time of switching insurers, you will be unable to transfer the accident forgiveness. So, make sure the new insurance company makes the necessary arrangement and has given the quote based on your driving record.

Final Word!

The insurance company never binds you to stick to the same policy or the insurer. You can switch the insurance plan or insurer whenever you feel like. Remember, insurers have the authority to charge penalties owing to early cancellation of the policy. By simply updating yourself with the pros and cons of the cancelling a plan, you can avoid the surprises and make the process smooth!



Written By: PolicyBazaar - Updated: 20 August 2020
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