How to Change Your Car Insurance Company: 7 Smart Steps to Switch Insurers
Switching your car insurance company is a straightforward process, especially at the time ofRead more
Steps to Change Your Car Insurance Company
Step 1: Shop Around and Compare Plans Online
Before your existing car insurance expires, shop around and view plans from different insurers online at Policybazaar.com or other insurance comparison websites. Compare coverage, prices, discounts, exclusions, and additional benefits.
Step 2: Review the Chosen Insurer
Before finalising your new car insurance policy, review the market reputation of the selected insurer and evaluate their customer service. Also, check the Claim Settlement Ratio (CSR) of the insurer; a higher CSR means more chances of your claim will be settled.
Step 3: Finalise your Coverage
Once you have done your research and selected the new insurer, begin the buying process by providing your car's registration number and vehicle details on your chosen online platform portal.
Step 4: Buy your New Policy
Select your Insured Declared Value (IDV) and any necessary add-on covers. Review your final premium, make the payment online, and instantly get your new car insurance policy.
Step 5: Verify Policy Details
Carefully check all the information in your new policy, such as your car details, policy period, IDV (Insured Declared Value), NCB percentage, add-ons selected, and contact details. In case of any discrepancies, immediately contact your insurer to make the necessary changes.
Step 6: Transfer Your No Claim Bonus (NCB)
The No-Claim Bonus belongs to you and not your car. So, request the NCB certificate from your previous insurer and submit it to your new insurer to transfer your accumulated NCB discount to your new policy.
Step 7: Cancel Your Old Policy
Do not simply stop paying your old policy premium. Inform your previous insurer that you do not want to renew and that you are officially cancelling the policy. Confirm the same in writing to make sure that there is no ongoing billing, and the company has cancelled it properly.
*Note: While you can cancel your policy at any time, switching insurers mid-term can mean that you lose some part of your premium you paid in advance. Hence, it is highly recommended to switch your car insurance at the time of renewal.
Documents Required to Switch Car Insurance Companies
Before you begin switching your car insurance provider, keep the following documents ready. This will speed up your policy issuance and NCB transfer.
- Your vehicle registration certificate (RC)
- Copy of your car insurance
- ID and address proofs (if required)
- Vehicle ownership details
- NCB certificate, if applicable
When is the Best Time to Switch Your Car Insurance Company?
The ideal time to change your car insurance company is at the time of your policy renewal. By doing so, you can easily compare quotes from different insurers, customise your coverage with add-ons, and switch to a new insurer without any break in your coverage.
While some car insurance companies may allow policy cancellation and switching during the policy term, you may have to deal with additional paperwork and certain refund conditions. For most car owners, renewal is the simplest and most convenient time to switch insurers.
Common Mistakes to Avoid When Switching Car Insurance
Avoid these mistakes when changing your car insurance company:
- Allowing your existing policy to expire before buying a new one
- Forgetting to transfer your NCB
- Choosing a policy solely based on the lowest price
- Ignoring policy exclusions and add-on differences
- Not reviewing claim support and service quality
- Failing to verify policy details after issuance
