Here's When Should You Change Your Car Insurance Company

In India, every car owner must buy car insurance according to the Motor Vehicles Act, 1988. Third-party car insurance offers insurance coverage in times of accidents. Under third-party car insurance, the insurance company covers the cost of damage or any other expense incurred by the third-party. The coverage is provided in case of an accident caused by the policyholder.

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Above-mentioned prices are for a 7-year-old Maruti WAGON R AVANCE LXI (998 CC) registered in Gurgaon and 15 days before expiry of previous policy

While purchasing car insurance in India, it is recommended that you do proper research and analysis. The insurance market is flooded with options offering various features. Ideally, you should choose a car insurance that suits your needs and budget.

If you have already invested in car insurance, you might have thought to switch your car insurance company. Changing the insurance company is no big task. It is very simple and easy procedure that can be done at any time.

While the premium rates keep on increasing, you would want to grab the best deal. However, when you are searching for new insurance companies to make a switch, it is important to carefully review your insurance expectations. Based on that, you can check whether the offered features fulfill your insurance expectations or not. Also, take into account the premium that each insurer charges. This will go a long way in helping you save on auto insurance premium.

You may think of switching from to a new insurance provider for numerous reasons, such as premium rates, poor service etc. But make sure you consider your requirements, and budget before you make a final choice.

When to Make a Switch?

When you should decide to change your car insurance provider and whether you should do it or not, is a matter of personal choice and preference. However, it is advisable that you keep an eye on the insurance market. Every two or three years, look for a car insurance plan that provides better facilities.

If you do not want to change multiple insurers frequently, you should keep an eye on the insurance plans. If a plan fulfills your insurance needs you can make a switch.

 Below are certain points to consider that helps you know when you should make a switch. 

Rising Premium Rates

Getting car insurance in India is an easy affair. But often, insurance buyers are not aware of how the insurance companies calculate the premium rates. Premium rates differ from person to person. While one person may be offered a plan at a higher premium rate, other can be offered the same plan at a lower premium. At the time of calculating the premium rate, the insurance company takes into account factors such as age, car model, car age driving skills, etc. Essentially, the company tries to determine the risk associated with the policyholder. After considering these factors, if the insurance company concludes that the insurance buyer is likely to cause accidents or can be a liability to the insurance company, then that insurance buyer is offered a car insurance policy at a higher premium rate and vice versa.

From time to time, the insurance companies re-evaluate the policyholder’s profile and re-evaluate the risks factors and make changes in the premium accordingly. So, when you renew your car insurance policy, you may have to pay a higher insurance premium as compared to the first premium paid.

But, if you wish to save those extra pennies, be wise to understand that there are various insurance companies in the market. Don’t feel that if you cancel your policy with your current insurer you will have to pay more to buy a new insurance plan. You can always switch to a new plan. Before doing so, make sure you explore the insurance market, do your own research and analysis. Chances are high that you will come across a plan that will fulfill your insurance expectations. Keep in mind your budget and requirements to make the process easier.

Insufficient Additional Covers

There can be times when basic comprehensive car insurance may not cover you against all the risks that you need protection for. In order to provide you with full-fledged service, many car insurance providers offer various additional covers. These add-on covers enhance your insurance In case the add-on covers offered by your insurance plan don’t fulfill your insurance expectations, you can switch your car insurance plan.

For example, a comprehensive plan will not provide you with insurance coverage in case your car’s engine gets damaged due to water logging in your area. So, if you reside in an area that is prone to water logging when it rains, it is recommended that you buy an additional cover to safeguard your engine under such circumstances. Though initially, you might feel that it is a cost burden on you, it will save you from incurring heavy costs in the future.

Note- When you buy add-on cover to enhance your basic comprehensive car insurance coverage; you will have to pay a higher premium.

Bad Customer Support

The first thing that any car insurance buyer wants in case of an emergency is- support. For instance, if you are stuck in the middle of nowhere, all you will want from your insurance company is to help you resolve the problem as soon as possible.

Be it a covered accident, theft or repair problem, your insurance company must provide you the insurance coverage. If you think that your insurance company is not providing the adequate amount of support and service in the hour of need, then it’s the right time to think to make change

The market is flooded with a vast number of insurance plans, so choose an insurance company that offers remarkable service. When selecting a car insurance company, it is important that you read customer reviews to get insights about the company’s customer support system.  A company with goodwill in the market will never compromise with customer support and service, so select carefully.

Also, it is advised that you select a car insurance company that provides 24/7 customer help and has a 24/7 toll-free number. Casualties can occur anytime, it is better to have a car insurance that is there to assist you anytime and anywhere. 

In a Nutshell

Mentioned above are a few cases in which you should put on your thinking cap and decide to change your current insurance company. If you feel you can get better coverage, then you should go for it. When you decide to change your insurance company for any reason, make sure you first inform your current provider on a prior basis and explore the market to compare policies and different insurance companies.

Maintaining a car is very important to have a safe journey. While it is a big responsibility, buying a car insurance is a step in the decision. Keep your insurance expectations in mind and make a wise choice.

Written By: PolicyBazaar - Updated: 13 July 2021
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