Things to Look for While Switching Your Car Insurer

Selecting the perfect policy is one thing, however, if filling a claim leads to a lot of hassle and effort, it’s time to reconsider.

Picking a car insurance provider doesn’t mean that you’re bound them forever. Even it is the best thing that a regular policy comes with a minimum tenure, where you are free to explore other options or look for the best fit if you are not comfortable with the current insurer. The solution is to jump onto another wagon.

In this article, a simple guide is provided about what you should know before porting the policy or changing the insurer. Much like making the switch for the first time, it requires some research and calculation. In this regard, below are some pointers to adhere while making the move!

Premium Shouldn’t be Your Only Concern

You don’t purchase a car just because it is available at an affordable rate. You will look for a bit more as if the car looks better, has it some advanced features like an airbag, powerful engine, anti-lock breaking etc. Similarly, while buying insurance you just not look only for the coverage or lesser premium. Remember that the lesser the premium, the smaller the amount you can claim. Moreover, there are some inseparable conditions of a robust insurance policy that you shouldn’t ignore, even if it costs you a little more. You can take help from online car insurance calculator to compare the plans.

Consider the Whole Picture

Apart from the compulsory third party insurance, you need to evaluate if the insurance provider you are switching to matches your insurance needs. Apart from the regular coverage, there are some add-ons opting for which you can boost the basic policy coverage. Few of them include Zero Depreciation Cover, NCB Protector, Engine cover etc. Let’s say if you want to opt for Bharti AXA car insurance, then make sure the insurer offers such bonus coverage to fortify your normal policy. Based on your requirement, the insurer should know the cost you are willing to pay.

Claim settlement

You may find a policy at an affordable rate. It might be cheaper than the current one. But what about the claim settlement record of the insured? Have you considered this? What if you find it later stage that the insurer is not capable of paying the claims in an adequate manner. In this regard, to ensure a company with robust claim settlement record, you should go for the online reviews, IRDA’s annual report on claim settlement or friends who are currently availing services from the insurer. Remember that, no car insurance company is liable to make a payment in case of regular wear and tear, depreciation, consequential loss, electrical breakdown, met with an accident while drinking and driving etc. In case of damage to tubes and tyre is covered only if the vehicle gets damaged at the same time. However, it will pay 50% of the repair cost. So, consider all these things and go for it.

Convenience of Buying

Selecting the perfect policy is one thing, however, if filling a claim leads to a lot of hassle and effort, it’s time to reconsider. When your convenience matters a lot, make sure the insurer you are opting for has a well-accepted online presence. In the era of digitalisation, people prefer doing every deal online. Moreover, with the various apps, now purchasing insurance is not a big deal. This is the most convenient way of buying insurance, where you can crack a deal even sitting in the office or lying on the bed at home.

Above all, the insurer must have an extensive network garage list that you can approach easily. Network garages help you avail cashless claims without paying a penny. Another important thing to consider is 24×7 customer support. The insurer should be capable of resolving your queries and providing utmost assistance when it comes to claiming insurance.

Contact your Current Insurer

If already have decided, immediately contact your current insurer. It may be willing to fight hard to retain you and you see how quickly they are ready to offer competitive premium, after getting a strong hint from you. Amazing! Most of the time, they even try to beat the rival’s quote. Try to crack that.

Check for Potential Penalties

If you are determined on your decision and ready to switch, also check if there is any penalty for switching the insurer beforehand.

Usually, auto insurance companies give you the right to make a move at your convenience. Ethically, the complete unused premiums are refunded, in this case. However, some insurers may ask for a penalty if you end the policy with them or make a switch in the middle of a policy term. For example, under TATA AIG car insurance, the insurer refunds the premium excluding the prop rata part. So, in case you are switching in the middle of a term, be sure there is no penalty. If there is any do the match and analyse if the switch is worth or not.

Timing to Switch

You might not want to continue with the existing insurer, but sticking with the provider for a while might be helpful if you’re closing the deal on your policy’s expiration date. This way you can avail the new policy right away the old one expires and remain covered throughput.

Moreover, you will be entitled to no claim bonus for not claiming the policy. The best part is NCB is transferable from one insurance provider to another. Just make sure you have fulfilled the necessary requirement to ensure the same.

Mind the Gap

There shouldn’t be any gap in coverage while you are changing the insurer. Cancel the policy only after you get the new policy in hand. As a lapse in coverage may lead to serious financial and legal complications, you should ensure a written proof from the old insurer. It also could lead the new insurer to charge a higher insurance premium in future. Moreover, a gap means you are not covered by the policy and in case of an eventuality you’ll not be covered by the insurer. This leads to a huge monetary drain in case of damage or accident.

Is Your Old Policy Cancelled?

While making the move you shouldn’t stop paying the premium instantly. First, make sure the old policy is ceased. Be sure to notify your insurer that you’re ending the deal with them and are going to switch. Also make sure you are provided with a written confirmation from the old insurer that the policy is cancelled, to avoid a consequence.

In a Nutshell!

There is no way to ignore commercials and online advertisement hyping the product. Let’s say in a recent advertisement you may find the offering of Bajaj Allianz Car Insurance attractive. But in reality, it may not suits your requirement. Hence, online comparison of insurance is necessary. In this regard, a car insurance calculator comes in handy!

Usually, the TV commercials claim better coverage, fast settlement and lower premium. While these advertisements can leave you in a state of confusion, it’s important to take ay decision carefully. Thorough research is essential to ensure the right policy. Above all online comparison is a must.

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