Car insurance policies are a contract for the protection of your vehicle that is valid for a specified duration. In return, the insurance company charges a premium and the insurance coverage can be renewed at the end of each policy period. However, at the renewal date, you have two options—either to continue with your existing insurance provider or to change your insurance company.
The renewal facility is simple, where you pay the premium to obtain the same insurance coverage as any renewal benefits. But in case of dissatisfaction with any aspect of your existing insurance plan, you can even switch the car insurance
policy. This facility to change your insurance company is one big advantage that the Insurance Regulatory and Development Authority of India (IRDAI) offers.
You can either buy third-party car insurance or a comprehensive car insurance plan. For both insurance plans, car insurance transfer is possible, and it can be done either at the expiry of its coverage or even during the policy tenure in case of a bad claim experience. However, if you are confused about such a transfer, here’s what you need to know.
When should you consider switching car insurance?
- Steep premiums: Most buyers switch their insurance plans due to high premiums or low coverage for the premium offered. If you find your policy to be steeply-priced, you can compare it with other insurance companies and save on premiums by switching the insurance company.
- Poor quality of service: If you are someone who is intending to change the insurance company due to the inadequate service provided by your present insurer, you must make sure to verify the services and support offered at a different insurance company.
- Complex interface to file claims: If you find your current insurance company having a confusing interface to lodge claims or access your account online, switching car insurance can be an option to consider. Although, take time to learn the navigation and interface for your new insurance policy.
- Inadequate coverage: Add-ons are optional policy features. They can substantially increase the coverage of the insurance plan. If your current insurance company does not offer such add-ons, you can change your insurer.
A step-by-step guide to switch car insurance
Once it is clear when you need to change your insurance company, here’s a guide to simplify the car insurance transfer
Step 1: Analyze your requirements
Just like you analyze the coverage requirements before buying a new insurance plan, make sure to explore your different requirements when it comes to a car insurance policy. This preliminary step before shortlisting any insurance plans helps to know what you need to look for beforehand.
Step 2: Research and compare
The next step is to research the different available insurance plans. Your search must be narrowed down using the requirements checklist. Once done, do not forget to compare the different available plans. This will help you get affordable insurance coverage that is light on the price and heavy on its features.
Step 3: Verify the coverage
Once you have shortlisted different policies, verify the coverage provided thereunder. Here, you need to check whether your reason for changing your insurance company is met, or else the entire exercise is futile.
Step 4: Customize the policy scope
If you are buying or upgrading to a comprehensive plan, do not forget to consider the add-ons offered within them. This helps to enhance the policy’s scope at a nominal bump in cost. Further, the insured declared value is something that you must keep in mind when customizing the cover.
Step 5: Understand policy terms thoroughly
Lastly, do not miss on understanding the policy terms thoroughly. Once you are familiar with its terms, you can make an informed choice of insurance cover.
With the above-mentioned steps, you can seamlessly change the policy at the time of car insurance renewal online
and avail suitable insurance coverage.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.