The Upside and Downside of Staying with the Same Auto Insurance Plan for Years

Get Car Insurance starting at only ₹2,094/year #
Processing

We’re living a super-busy life and most of us don’t want to face any hassle by searching for a new auto insurance plan when it comes to renewing our motor insurance plan. It’s way easier to renew an existing plan. The majority of insurance providers offer rewards to their policyholders for renewing their policies every year. The insurance provides loyalty perks in order to prevent their policyholders from porting to a new insurance provider at a competitive premium. Therefore, the insured persons stick with the same motor insurance plan at the time of renewal so that they can enjoy the offered loyalty benefits.

Read more

  • Renew policy In 2 minutes*

  • 20+ Insurers to choose

  • 51 Lakh+ Vehicles Insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Get Car Insurance starting at only ₹2,094/year #
Looking for Car Insurance?
Select your city or RTO
Search city or RTO
Can’t find your RTO? Search for it
Search Car Brand
    Search model for Maruti Suzuki
      Search for variant
        View all variants
          Please fill your details
          Your full name
          Email address
          Mobile number
          View Prices
          Please wait..
          By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
          Select Make
          Select Model
          Fuel Type
          Select variant
          Registration year
          Registration month
          Save & update
          Please wait..

          There are plenty of benefits of continuing the same insurance plan at the time of renewal. But there are various drawbacks associated with motor insurance loyalty. In this article, you’ll get know about upside as well as the downside of staying with the same auto insurance plan for years.

          The Upside of Automobile Insurance Loyalty

          Insurance companies offer benefits and perks so that the policyholders continue to stay with them for the long run. Commonly, these rewards are offered when the policyholder has stayed for a certain time-period with the insurance provider. These perks can increase if the customers stay for a longer time-period.

          • No Claim Bonus- A discount is offered on insurance premium as a reward in the form of a No Claim Bonus from your insurance provider. This discount is applicable only if you keep your policy active and don’t file any claims for a year.

          • The Decrease in Deductibles- There are some insurance companies that reduce your deductibles for being loyal to them. Although, this usually depends on various factors such as the number of claim-free years on your plan.

            In various cases, your deductible can be waived off. In such situations, you don’t have to pay any deductible if you meet with an accident. Having said that, it does not help you to save any premium. When you file a claim, you will enjoy this benefit.

          • Accident Forgiveness Option- This option in your insurance plan allows you to enjoy the benefit of no increment in premiums even after an at-fault accident. In such cases, it’s great to stick to the same insurance plan until your accident isn’t listed in the records.

            It is because of the fact that accident forgiveness can’t be transferred at the time of switching to a new insurance plan. If you want to enjoy the coverage, you have to pay an additional premium.

          • No Hidden Costs- Keeping aside the perks that you give up at the time of switching to a new car insurance provider, you’ll have to pay the expenses related to starting a new plan such as fresh policy fees along with the down payments. These hidden expenses can make the process of shifting plans quite expensive from what you would initially expect.

          The Downside of Automobile Insurance Loyalty

          Every coin has two sides. Let’s explore the negative side of being loyal to your insurance provider.

            • You End Up Paying More-In most of the cases, policyholders stick with the same insurance plan because of the comfort level that they share with their insurance provider. The mere fact that the insurance premium hasn’t changed, gives them a feeling that they have obtained the most economic policy. It isn’t necessary that this is always true. Before the time of renewal, you must get premium quotes from various insurance companies so that you get an idea of the best premium insurance.

            • The Offered Insurance Coverage Might Not Suffice- Every year when you renew your car insurance, you should read the policy wording very carefully and analyze whether the existing insurance cover is suits your current insurance expectations.

              Do check out the yearly premiums and the offered coverage so that there is no room for any discrepancies. Keep in mind, that your insurance company might slightly modify the policies on an annual basis and you might not be completely satisfied with that. If you’re not satisfied, you might need to change your insurance plan.

            • You are Missing out on Discounts- Due to the cut-throat competition in the insurance sector, insurance buyers can avail of a broad range of attractive discounts on their insurance plan. All you have to do is go through the wide insurance options of various insurance providers to figure out the plan that fulfills your insurance plans.

          The No Claim Bonus is something that hinders various policyholders from porting into other insurance providers. It’s extremely crucial to comprehend that the No Claim Bonus can be transferred to your plan with the fresh insurance company. So, there isn’t any reason to stress about missing on this benefit.

          Is it worth it to stay loyal?

          In two words, the answer is- it depends. Your financial situation and insurance expectations majorly affect this decision. Having said that, it’s a recommended by insurance experts to get quotes from different insurance providers to analyze the competitiveness of your insurance.

          At the time of comparison, you should pay attention to the discounts that will you’ll have to give up the expenses related to porting. Also, you must consider the credibility of your new insurance providers’ customer support as well as the claims handling process. It’s beneficial to understand that loyalty pays off at times, but it might not be the best preference in all the situations.

          Convenience Vs. Comfort

          It’s super convenient to carry-on with your current insurance plan when the customer support executive inquire about the renewal. All you need is to give your approval. The insurance premiums wouldn’t change that much and you don’t have to go through an entire process of selecting a new insurance plan.

          What if the same insurance coverage is offered at a cheaper premium? There could be some insurance providers offering the same coverage at a lower insurance premium.

          It is completely your call if you want to pick convenience over comfort or comfort over convenience.

          Loyalty Doesn’t Always Pay

          It’s very easy for your insurance plan to retain you as an existing policyholder as compared to acquiring a fresh policyholder. When you continue with your current insurance benefits, a fresh policyholder will be offered a better deal.

          History Doesn’t Always Repeat Itself

          When it comes to insurance renewal, your insurance provider has earned your trust. After all, the insurance provider offered you the cheapest insurance plan previous year.

          Don’t you want to get such a great deal with your insurance plan this year as well? The chances are low that you will get such deal from your current insurance provider.

          Pay Attention to the Clues

          It’s best to compare premiums of various other insurance providers; however, you could also ask your current insurance provider if you’re eligible for any perks for your loyalty. For instance, if you renew your insurance policy with the same insurance providers for years, your insurance provider might enhance your insurance premiums.

          Change the Plan

          It is very simple to carry on with the current insurer since it saves you from paperwork, documentation process and bargaining.

          Do you remember the last time you went through your policy documents to review your plan? Your insurance company can make modifications to your existing coverage that you may not even pay attention to.

          In case you don’t like any of the clauses, it’s time to make some changes in the coverage.

          Add-Ons

          The tough competition is driving the insurance providers to re-invent their insurance plans. This is a good thing as it allows the customers to select from a wide range of discounts and offers.

          When you don’t keep yourself updated with the new plans, you might miss out on so many good deals.

          When you renew your insurance plan from another insurance provider, it comes with various useful add-on covers such as courtesy car service, windscreen breakdown cover, vehicle breakdown rescue service etc. without paying anything extra.

          The Bottom Line

          In case you are having second thoughts about your NCB, relax. Don’t let the fear of losing your No Claims Bonus stop you from porting your insurance plan. It can be easily transferred your new plan to a different insurance provider. You can make a smooth switch to another insurance company if you feel that’s the smarter option.

          As per law, it’s compulsory to buy third-party insurance coverage for your vehicle plying on Indian roads. Buy online third party insurance for car, and fulfill your liability. In case your car meets with an accident, you’ll have to pay for the damage repair expenses which can burn a hole in your pocket.

          Compare pros and cons of staying with the same auto insurance plan for years and weigh which side is heavier and make your insurance preference accordingly.

          Find similar car insurance quotes by body type

          Hatchback Sedan SUV MUV
          Search
          Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
           Why buy from policybazaar

          Car insurance articles

          Recent Articles
          Popular Articles
          How Long Can You Wait to File a Car Insurance Claim?

          22 Mar 2023

          When an unanticipated road accident occurs, filing a car insurance
          Read more
          How to Transfer Car Ownership Online?

          20 Mar 2023

          A car's ownership is usually transferred if the car is sold to a
          Read more
          About Hybrid Cars -Types, Advantages, Hybrid vs Electric Car

          16 Mar 2023

          Due to their diverse benefits such as lower fuel economy and low
          Read more
          Vehicle Scrappage Policy in India: All You Need to Know

          15 Mar 2023

          With an aim to phase out unfit and polluting vehicles, the
          Read more
          Planning To Cancel Car Insurance? – Here’s What To Know

          28 Feb 2023

          Though rare, car insurance cancellations are pretty much evident
          Read more
          Check Car Insurance Status Online on Parivahan Sewa/ RTO?
          It doesn’t matter if you are an excellent driver or take your car out only once in a few months, your car must be
          Read more
          Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
          Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
          Read more
          How to Find Car Insurance Details by Registration Number?
          As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act, 1988. Sometimes, you
          Read more
          Multiple Ways To Check Your Car Insurance Status Online
          With everything going digital, checking vehicle insurance status online has become easier than ever. It not only
          Read more
          Transferring Car Insurance from One Person to Another
          An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance
          Read more

          top
          View Plans
          Close
          Download the Policybazaar app
          to manage all your insurance needs.
          INSTALL