Car insurance is something that all car owners need to comply with along with registration and PUC requirements. It is advisable to buy a policy understanding the nitty-gritty of it. However, at times policies are bought in a haste. Sometimes due to the mandatory requirement to comply with, while other times the lack of information being its reason. Whatever be it, the regulator, the Insurance Regulatory and Development Authority of India (IRDAI) allows for the change of insurance companies. This is possible not only at the end of the policy tenure but also during it. Here are some tips and tricks to remember when you are in the process of changing your car insurance plan.
Cancellation of your policy
While you are searching for new alternatives to your policy, the first step is to cancel your existing policy. This is required in case you choose to cancel your policy mid-tenure. When you want to change your insurance provider, you cannot simply move on to another insurer. An intimation needs to be made to the existing insurer about such cancellation.
Transferring policy benefits
Once you have intimated your insurer about the cancellation of your existing car insurance plan, the next step is to transfer the policy benefits. Every car insurance company offers certain policy benefits in the form of a no-claim bonus (NCB). This facility is offered when claims aren’t raised during the previous policy tenure. When you transfer your policy from one insurer to a different one, do not forget to transfer this no-claim bonus too. For that, you will be required to obtain an NCB transfer certificate that when submitted to the new insurance company will lower the car insurance prices based on the applicable no-claim bonus.
Know the reason for the change
The most critical thing to keep in mind is the reason for the change from your existing car insurance provider. Knowing what went wrong in your previous policy will help to avoid the same mistake when buying a new plan. It can be many different reasons among unsatisfactory services, steep premiums, insufficient features and more. Keeping these things in mind helps to be aware of the time of change.
Investing time in research
Another tip when changing your insurance company is to research before buying. Research forms the basis when purchasing a policy. With the right amount of research, you can make decisions whether a policy is suitable for your requirements or not. The price, features, and other services are in line with your expectation is what you should be looking for when changing your insurance company. In this process, a car insurance calculator is one effective tool that aids in policy comparison considering the price and various other variables.
Does the new one fit?
Lastly, before finalising your new policy, you need to be confident that it is meeting your expectations checking all the right boxes. A good reputation, excellent customer feedback and reviews along with great buying assistance at an affordable cost is something that helps to seal the deal.
With the above factors in mind, changing a car insurance policy becomes easy. In case you are not satisfied with your existing policy, you no longer need to wait till its expiry, but instead make the switch instantly. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.