10 Steps to Follow When Switching to a New Car Insurance Provider
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Published on: 16 July 2021
Last Updated on: 15 November 2024
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When you’re a car owner, you need to secure your vehicle from unexpected damage. One of the most optimal ways to get safety for your car is by buying a car insurance policy. With the insurance for car policy, you will get the financial support to deal with the damage or injuries arising from an unfortunate incident.
Car insurance policies are generally valid for one year. Policies are offered for longer tenures, but most people opt for annual plans. While the duration of the insurance policy can seem quite low, it has some advantages. It can help you gauge whether the insurance company is right for you or not. If you’re not happy with your current insurer, you can switch to a new company. There are several four wheeler insurance companies in India and you can get an insurance plan for your specific requirements.
Follow these Steps when Switching Your Car Insurance Provider
1. Understand your requirements
Before you purchase the plan or move to a new insurer, you must analyze your requirements thoroughly. Only then you can purchase the most optimal coverage. You must factor in the daily usage of your car, age, driving history, etc.
2. Research policies available and compare
Several car insurance policies are available these days. Therefore, you must research the market carefully to learn about the best car insurance companies in India. Many insurers have easy online processes for purchase/renewal and claim settlement.
For instance, to purchase a TATA AIG 4 wheeler insurance policy, you can visit their website and look through the plans they provide. You can even use the two-wheeler insurance calculator to determine the premium cost for the policy of your choice.
3. Get adequate coverage
Read through the different policies to understand the coverage they provide. An optimal policy is one that offers the coverage you want at a lower price. You must give importance to coverage over the plan’s cost.
4. Check the insurer’s online reputation
Once you have narrowed down on a plan, you must look through the insurer’s reputation online. You can check by going to their social media pages or read the reviews their customers have left about them.
5. The claim settlement ratio is a good indicator of credibility
Apart from the insurer’s reputation and services, check their claim settlement ratio. It is an indication of the probability of claim settlement by the insurer. A high claim settlement ratio will lead to a higher chance of your claim being settled.
6. Initiate the purchase
You must visit your insurer’s official website, select the plan, enter the details required about your car, choose your policy and complete the purchase.
7. Determine the correct IDV
When purchasing the car insurance policy, you should declare the correct insured declared value (IDV) for your car. It is your car’s current market value. Providing the correct IDV will help you get your car’s current market value if it gets damaged beyond repair or stolen.
8. Select the correct set of add-ons
Add-ons are additions to the insurance plan that help you enhance the coverage. Although add-ons are beneficial, they also increase the car insurance price. Therefore, you must carefully choose the add-ons for your plan and only take on what is necessary.
9. Read the policy
An important part of switching to a new insurer is understanding the terms and conditions of the policy and insurance company. Learning about the terms used will be beneficial to you in avoiding claim rejection.
10. Make the payment
The final step in purchasing a policy is to make the payment. Then you will receive your car insurance policy document. In some cases, the insurance company will ask for an inspection of the vehicle before issuing the policy. Always carry the document in the car while driving.
Moving to a new insurance company brings you the following benefits:
- Desired coverage: You can switch to a new insurer who provides coverage with other features as per your requirements.
- Lower cost: An insurance provider that offers coverage at a lower cost is always welcome. However, compare the plans of companies and then make a choice.
- Better service: Reputable car insurance companies in India can provide you with a great range of services. It can help you tide over repairs to your damaged car without anxiety.
Summing up
Car insurance policies can be quite advantageous to save yourself from heavy financial expenditure. However, if your current insurance provider does not meet your requirements, you can always move to a new insurance provider. If you’re planning to shift to a new insurance provider, you can follow the steps listed above to purchase the most optimal plan for yourself.
Some Frequently Asked Questions
1. How do I change my car insurance to another company?
To change your car insurance to another company, you should first find a suitable plan. Once you have found a plan that meets your specific requirements, you must inform your current insurance company and let them know you wish to discontinue your plan. Once you’ve finished your cancellation, you can purchase your new insurance policy.
2. Can I change car insurance companies anytime?
Yes, you can change your car insurer at any time. If you’ve decided to move to a new insurance company, you must contact your current insurance company and ask them to complete the due diligence required to cancel the policy. After canceling the policy, you can purchase the insurance plan from another company.
3. How do I transfer my old car insurance to my new car?
You cannot transfer your old car insurance to a new car. Every car must have a unique car insurance policy. However, if you hold an NCB discount from your old insurance policy, you can transfer it to a new car insurance policy.
4. Does switching car insurance affect credit?
No, switching car insurance policies won’t affect your credit score.
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