Switching to a new car insurance policy? Here’s a complete guide

Sticking to one insurer year on year for car insurance is rare. With so many insurance policies available in the market, you can always find a better deal in another car insurance policy. Or, you might be dissatisfied with your current insurance company and might want to switch to another insurer. Whatever be the reason of your change, there is a process which is to be followed when you switch to a new policy. Do you know what the protocol is?

Here is a complete guide to switch the car insurance policy if you don’t –

The process involved

If you don’t know how to switch your car insurance policy or insurer, here are the steps which you should follow –

  • At the time of renewing your policy, go online and find the available car insurance plans
  • Compare the available plans and choose the one which has good coverage features at competitive premium rates
  • Once the policy is shortlisted, pay the premium online

If you are renewing before the due date, the existing policy would continue till midnight of the due date. After midnight, the new policy for which you have paid the premium would become effective. If your existing policy has expired, an inspection would be required before switching and renewal are allowed. The new insurance company should be informed about the expired status of your existing policy. The company would, then, arrange for an inspection of the car. Once the inspection is done and its report submitted, the policy would be renewed with the new insurance company.

Things to look out for in the new policy

Switching is good only when you get a better plan than your existing one. To ensure this, you should be careful when comparing car insurance plans. You should compare car insurance plans on the following parameters –

  • IDV offered

The Insured Declared Value (IDV) is the effective value of your car. A higher value is, therefore, advised. When switching, ensure that the policy offers you a better IDV than your existing one. If your IDV is higher, you would get a higher claim settlement in case of theft or total loss of your car.

Read more about Should you increase IDV of your car.

  • Premium rate

Though you must have checked the premium rate when you compared, ensure that the premium is in tandem with the car insurance coverage. Don’t be tempted by a low premium if the coverage features and IDV of the new policy are low. Ensure that you get a comprehensive scope of coverage at the lowest possible premium rate.

  • Add-ons available

Comprehensive car insurance policies provide various add-ons to enhance the scope of coverage. When switching to a new policy, make sure that the add-ons which you require are provided by the new plan. If not, you would be compromising on the coverage which is always a mistake.

  • Claim settlement ratio of the company

The claim settlement ratio of an insurance company denotes the company’s claim settlement history. If the ratio is high it means that the company has settled most of the claims which were presented up on it. Thus, you should check the claim settlement ratio of the new insurer. Make sure it is higher than your existing insurer.

  • Available discounts

You get attractive discounts in your car insurance policy. The rate of available discounts varies across companies. So, when switching your policy, ensure that your new company’s discount rates are higher than your old ones.

  • List of garages

Insurance companies have tied-up garages where you can avail cashless repairs of your cars. The higher the number of tied-up garages the company has the better are your chances of locating a preferred garage for cashless claims. So, look for a company which has the highest number of preferred garages.

Keep these points in mind when you compare different plans.

Read more about comparing online before renewing your car insurance plan.

There are a lot of car insurance plans available in the market today. Each one offers something better than the other. So, find the most suitable plan and switch your car insurance policy. The process is quite simple, isn’t it?

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