Car insurance policy is mandatory as per the provisions of the Motor Vehicles Act, 1988. You should purchase the vehicle insurance before bringing the vehicle on road from the showroom. If you are buying a used car, you will want to transfer the insurance ownership to your name.
In most of the cases, you are prone to renew the policy from the same insurance company. However, you might want to switch to another insurance company for better benefits and lower premium.
In most of the cases, you are prone to renew the policy from the same insurance company. However, you might want to switch to another insurance company for better benefits and lower premium.
A better offer
If you would like to switch over to a new offer, you should be aware of the features. You can protect your car in the best possible way by including useful riders such as zero depreciation cover, passenger cover and lost key cover. It is possible to compare various insurance policies online to strike the best deal.
Claim settlement
The claims settlement is one of the important factors in the selection of an insurance policy. Even though you buy a policy at a very low premium, there will be a great loss if the insurance company fails to honor the claim.
You can get feedback from your friends and relatives to assess the claims settlement history of an insurance company. Online reviews presented by customers and product experts will also help you assess an insurance policy in a very efficient way. The online insurance comparison service will help you compare various products and you can choose the best policy without any issues.
An insurance company may fail to honor the claim due to the following reasons:
- Depreciation, wear & tear
- Mechanical or electrical breakdown
- Breakages and failures
- Exclusive damage to tires and tubes (without the vehicle damage)
- Accidental damage or loss due to driving under the influence
Look beyond the premium
You should not subscribe to an insurance plan based on the price factor alone. If you go for an insurance plan with the lowest premium, you will get lower cover. The benefits are always proportional to the premium. Hence, careful assessment of the premium, as well as benefits, should be done on an objective basis.
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The car insurance company should offer cashless service at various garages spread across the country. You will be able to move the vehicle to the nearest garage as soon as you are involved in the mishap.
Transfer of credits
The no claim bonus that you manage with the existing policy should be capitalized with the insurance company. When the insurance company offers the ‘no claim bonus’ you will pay a low premium.
Best customer support
The new insurance company should offer the best customer support so that you can get information very quickly. You should be able to reach the support team through the toll-free number and the claims process should be seamless.
Convenience
You should be able to work with the insurance company in a very easy way. If the claims processing involves a lot of time, effort and money, you should not consider the new company. On the other hand, there are chances to switch over to a well-established company which offers great features and great convenience. In addition to the extensive network of garages, the repairs should be performed on time. You should not want to go through the circumstances wherein you should spend money from your own pocket.
Timing the switch
The switchover timing should be done to get maximum benefits both from the old as well as the new insurance company. If you will be benefited with the ‘no claim bonus’ after staying with the company for few weeks, you should wait until the expiry date. The ‘no claim bonus’ can be transferred from the current company to the new company and you will be able to decrease the premium amount. You are advised to consult the new insurance company about the benefits of switching over.
Cancel the previous policy
As soon as you switch over to the new policy, you should cancel the old policy. If your insurance ends with the current insurance company, the new insurance should start on the same day or the day before the expiry date. The insurance premium will increase if you fail to renew the policy before the expiry date.
You can also take steps to cancel the previous policy in which case you should get a written approval from the insurance company. When you cancel the policy, the company will not bill you and you will manage better credit rating.
Investigate the new insurer
You should verify the performance and financial strength of the new insurance company. If the insurance company offers better features at a low premium, you can switch over to the new company.
Conclusion
Before switching your car insurance provider, you should do your homework. The feedback obtained from your friends and associates, the online reviews, price comparison sites will help you smooth switch-over.
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