Many first-time motor insurance policy buyers usually purchase a policy that is offered by the automobile dealership without understanding the terms and conditions of the policy and their own coverage needs. Thus, during the course of the policy term, the policyholder might be dissatisfied with the services offered by the insurer, the benefits of the policy, or the premium that he/she is required to pay. In this case, the policyholder can always opt to switch their insurance provider.
Today, there are a number of general insurance companies that offer various types of motor insurance policies. In addition, given the stiff competition in the industry, many leading insurance companies offer discounts, competitive premium rates for car insurance policies with an own damage cover, dedicated customer care channels, etc. Therefore, if you are not happy with your current car insurance policy, you can switch your insurance company.
Top Reasons to Switch Your Car Insurance Company
Some important reasons when you should consider changing your insurance provider are as follows:
High Premium Rates: Unlike third-party liability insurance policies for which the premium rate is decided by the Insurance Regulatory and Development Authority of India (IRDAI), insurance companies fix premium rates for comprehensive car insurance policies based on certain factors that they take into consideration to calculate the risk. Thus, it is common for different motor insurance companies to provide slightly different premium quotes. However, if you find that your car insurance provider is charging a premium that is significantly higher than the premium charged by other insurers for a policy with a similar coverage, you should consider changing your insurer. Before changing your motor insurance provider, you should make sure to request premium quotes from various insurance providers and purchase a policy from a company that offers a competitive premium rate and sufficient benefits.
Complex Claim Settlement Formalities and Long Claim Settlement Timeline: In the event of an accident, vehicular damage, or total loss, you should be able to raise a claim with your insurance company and receive a settlement from the insurer for the same. In order to process the claim, your insurance company will require you to follow a certain process. Further, the insurer will need to verify the documents and claim form that you submitted before releasing the settlement to you. That being said, if you find that your insurer has an extremely complex claim settlement procedure and processes claims very slowly, it is smart to consider changing your insurance company. Make sure that the insurance company that you are switching to offers a timely and hassle-free claim settlement process. Also, make sure to check the incurred claim ratio of the new company for the past few policy years to get a better idea of how reliable the insurer is when it comes to settling claims.
Customer Service Channels: If any need arises, you should be able to reach your insurance provider quickly. For this, it is necessary for the insurance company to offer a few different customer service channels. Further, the insurer should have enough customer service representatives to assist customers who may need help. If you find that it is difficult to get in touch with your insurance provider and that you don’t receive any response even when you do, it may be time to change the insurance company. Make sure that the insurance company that you intend to switch to offers a number of customer care channels and offers you assistance whenever required.
Insufficient Choice of Add-Ons: Most leading motor insurance companies also offer certain add-ons that policy buyers can purchase along with their policies for an additional sum of money to receive comprehensive coverage. That being said, in order to keep your premium in check, it is advisable to only purchase the add-ons that you really require. For example, if you have a number of expensive accessories fitted to your car, you should purchase the Loss of Accessories Cover along with your base car insurance policy. On the other hand, if you have no additional accessories in your car, it is quite pointless to opt for this add-on. While there are a number of add-ons that are offered by insurance providers, not all car insurance providers will offer all the add-ons. Thus, if you require an add-on and your motor insurance provider does not offer it, you should consider switching to a different motor insurance company that offers the add-ons that you require.
Insufficient Benefits: In addition to the benefits offered by your policy, a number of motor insurance companies offer additional benefits to policyholders. For example, some motor insurance providers offer a loyalty discount to individuals who have purchased other insurance policies (health insurance, two-wheeler insurance, etc.) from the same company. Thus, if you find that your insurance company does not offer any additional benefits, especially in comparison to the benefits and perks that are offered by other insurance providers, you should consider changing your insurer.
While it is extremely easy to change your car insurance provider, it is necessary to do your due research before shifting to another insurance company to ensure that you don’t have an unsatisfactory experience again. For this, you should make sure to compare the features of various policies, check the history and market reputation of the company, and compare premium rates.
Further, since it is mandatory to have at least a third-party liability car insurance policy as per the Motor Vehicles Act, 1988, you should ensure that there is no gap in coverage. You should, thus, not cancel your current car insurance policy before the coverage of the new policy commences.