How to Switch the Car Insurance Policy in India

Finance

The best thing about annual car insurances is that you can easily change over your insurance provider at the time of renewal if you have been unhappy with its services or premium amount. Moreover, most experts advise Indian consumers to switch their car insurers every couple of years as this helps them save a sizeable amount of money. However, you need to gather all information and make such a switch that it gives you maximum benefits. Mentioned below is the guide to help you make the informed switch with no hassle.

Get your Why clear

Before making the switch; it is important to understand why you are making the switch. A mere slash in premium amount may not be the solid ground. Look into all the benefits and packages. A low premium might mean a low sum assured. Look into the current benefits available in your plan and compare them with those available in the market. If you are getting a better deal with more benefits; then the switch makes sense.

Shop around and compare rates

This might look tedious and boring but is a very crucial step. This was once a challenging task but is far easier today, thanks to various comparison sites available online. You can put in your data and requirements and you would get quotes from various companies. You can compare and contrast them on each individual parameter as well as holistically. You just need to take care that it covers all your requirements.

Research and evaluate the need for your coverage

You have already had the coverage for one or more years. Additionally, it is likely that few of your life scenarios have also changed. For instance; you could have gotten married, conceived a child or even migrated to a new location. All these have an impact on your finally derived premium amount. You might also have realized that there are quite a few features in your current car insurance plan that is of no use to you. You need to reevaluate them and make adjustments such that you are not paying needlessly.

Know about switching penalties if any

While it is not mandatory, few companies might have a switching penalty to prevent you from switching over. Additionally, if you let them know that you are thinking of switching; they may try hard to retain you in this competitive market and offer you some exclusive discounts which are not advertised in the market.

Investigate the new insurer

It is important that you check the new insurer on various parameters before making the switch. A hasty switch might cost you, dear. The performance, financial strength of the insurer, experience, etc. are some key factors to look into before you make the switch. Getting to know the footprint of the company on the social media, their environment-friendly policies, their involvement and work towards social benefit would give you plenty of insight about them.

Look into the claim settlement ratio

When investigating any insurance company, it is vital to look into their claim settlement ratio. It provides the insight into how many claims they settle and drool out the money to the insured. A low ratio means that they reject more claims than honor it. With this reputation, there is a high chance that they would reject your claim as well. Thus, paying your premium would be a complete waste for you. It is a golden rule to always stick with a company having a high claim settlement ratio.

Check out convenience and service

An exemplary customer service is also a mandatory requirement. Most have 24/7 service or at least regular service during business hours. In case you send any query to them; you should be getting the response back at the earliest. Many also offer easy online services where you can easily manage your policies as well as claims and even track repairs. With advancing technology, most of them also offer you a mobile app which makes them and your policy accessible even when you are on the go.

Make the switch

Once everything has been decided, you must make the switch and follow the process. One thing that you must be particularly careful about is that your new car insurance must become active before the end date of your policy or on the exact date but never after the policy has ended. Even a day’s lapse or just a few hours of lapse could be risky and may lead to a higher rate of premium in the future.

End your previous policy

Once your new policy has become active, you must cancel your old policy. Do not accept anything at face value and get the entire thing is writing. Ensure that the old policy is no longer active and get a valid proof of it in writing from your old insurer. This will avoid all confusion in the future. Also, ensure that the new insurance company interacts with the old in a timely manner and get your accident forgiveness transferred.

Following these steps will not only help you save more but also help avoid plenty of unnecessary hassles.