Switching Your Car Insurance Provider after an Accident

If your car has been involved in a road accident and you are wondering if you can switch your car insurance provider or not then here are the answers to all your queries.  An accident doesn’t prevent you from changing your car insurance company. If you are not satisfied then you can switch your car insurance provider at any time.

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Let’s see why switching your car insurance is actually not a bad idea. But there are certain things that need to consider or a procedure that you would need to follow:

  • In order to cancel your current car insurance policy, you should timely inform your current car insurance provider. The insurer will begin with the cancellation process and it may take 7 to 15 days.
  • Your insurance provider will then guide you through the cancellation procedure. There are some car insurance companies that require you to sign a document for policy cancellation.
  • Whereas, some car insurance companies may require you to notify them on email.
  • And some car insurance companies will ask you to give them a signed declaration to initiate policy cancellation. Once the request is approved, the insurer will confirm the process. You will also get to know about the due refund in the approval letter.
  • Also, remember that your car insurer returns your car insurance certificate. It will be required while switching your insurer and to retain your No Claim Bonus.
  • Also, check for any refund amount that the insurer has to pay you. If you have already paid the insurance premium for the policy term then you are likely to get a refund on the pro-rata basis.
  • Simultaneously, apply for a new car insurance policy, while you are initiating a cancellation for your current policy. As a failure to do so may call for penalties, in case of accidental liabilities resulting in personal injuries or property damage, or you may need to pay an extra premium when buying a new policy.

Things to Remember:

Doing comparison at the time of policy purchase will help you find a policy that matches your needs in a personalized manner and also save money. Industry reports reveal that customers can save up to 50 percent on their car insurance after examining the market.

There are so many policies that are available from top car insurance companies, which further adds to the confusion. As you know third party insurance is mandatory in India but a comprehensive car insurance policy is recommended for complete protection cover.

Enclosed below is a list of factors that you can consider before the policy purchase -

If Your Current Insurance Provider Is Not Offering You Adequate Coverage

Motor insurers regularly update their premium rates and policies, and probably this is the reason that you are thinking of changing your existing car insurer.

While switching your car insurance provider it is recommended that you compare different car insurance policies and then replace it with the right car insurance provider.

Mentioned below are some of the factors that you can consider -

  • Passenger Cover-If you travel too often along with your friends and family, then you should make sure that your policy offers passenger cover also.
  • Agency Repair - If don’t have this in your current policy, and then you should opt for agency repair cover.
  • Personal Belongings Cover - Check if your car insurance scheme provides personal belonging cover at the time of an accident or theft.
  • Car Replacement Service - If you are driving to work daily, choose a policy that provides you with a car replacement service in case of an accidental emergency or collision.
  • No-Claim-Bonus – While switching your car insurance provider you can avail a good discount by furnishing your NCB certificate from the last insurer to the new insurance provider. It will assure that you drive safely, and your claim-free records in the last year.

Increased Cost of Premium

New motor insurance has been introduced since September 2018, which makes it mandatory to buy long-term third-party car insurance. It is in view of increasing the coverage benefits and protection to the customers but this has also added to the premium. So your new car insurance policy might charge you more if your car is also new. So, it is suggested that you find the best deal by doing an online comparison of different car insurance plans.

The cost of the premium can vary based on your car’s model, age, damage, and also your age and driving history.

The major cost difference is in a comprehensive policy as it takes into consideration all the other factors related to the car’s safety and your probability of filing a claim. However, the premium for a third-party insurance policy remains more or less the same for a car with the same engine power.

Remove the Benefits that are No Longer Required

Before zeroing down and signing-up on a car insurance quotation, you should opt out of optional covers that are not necessary.

It’s important that you assess each feature based on your requirement.

Do not underestimate or overestimate your vehicle’s value, as it would increase the cost in the future. Once you have understood your requirements, you can check with different motor insurance companies and compare the cost of the premium.

Policy Renewal

If you have missed the policy renewal deadline, then it’s still not too late. Some companies provide a grace period and you can get your policy renewed within that time frame.

You can utilize the grace period to carry out your research and select the best option for yourself at the time of renewal. Nowadays, almost all the car insurance providers offer easy online renewal facility. In a matter of a few clicks, you can get your policy renewed within minutes.

Summing it Up

So, the next time when you are renewing your car insurance policy, make sure that you compare various policies from different car insurance providers and choose the best car insurance in India for yourself.

Written By: PolicyBazaar - Updated: 15 July 2021
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