6 Steps to Know While Switching Car Insurance
Many industry observers suggest you to switch car insurance companies after every 2-3 years. You can save on your premium rates by switching insurers. However, not every switch proves to be beneficial.
Given below are a few steps for helping you in making an informed switch:
- Shop Around and Compare Rates
Insurance companies provide a cover for a year before their respective renewal. Always compare the different options with prospective insurers to get a free quote of each.
You can check the respective coverage, limits, benefits, and deductibles to compare each insurer. If you compare, it would bring out a rational perspective on how various plans will affect you all along with the policy tenure. You can estimate your quotes with an online car insurance premium calculator.
- Research and Evaluate the Need of your Coverage
Certain life-changing scenarios like getting married, conceiving a child, relocation, etc. affect the coverage needs. There are several options, deductibles and limits available in the market. You must get the best coverage that you can afford. Hence, consider your family needs before purchasing the right coverage for your loved ones. Evaluate the features/ coverage available in each plan. Select the plan that suits you the best.
- Investigate carefully about the insurer’s background
The first thing to do is to verify the performance, experience and financial strength of the insurers through websites, friends, and neighbours. To get an idea of the company’s community involvement or environment-friendly policies, visit their official website or social media handles.
- Check Convenience and Additional Benefits
There must be a 24/7 customer service. It is a reassuring factor, as you might need to inquire something. A few companies provide online services for managing the policy, claims and track repairs.
To manage your policy online, check if the general insurance company has any mobile app. For more convenience, find the options for payment of each insurer.
- Make the Switch and Cancel Your Previous Policy
Make the switch, once you are done with the groundwork. The new car insurance will start before or on the same day when your old insurance ends. A day lapse could also lead to higher rates of coverage in the future.
Do not just stop the payment of your previous policy’s premiums, cancel it. You must inform your previous insurer about your ending the policy with them. Also, confirm the same in writing. If you take these safety steps, you ensure that the company will not continue to bill you.
- Print your Identity Cards
You can swap your old insurance ID cards for the new one as soon as your new insurance policy becomes active. Make sure you have a soft copy of previous insurance’s card and other related documents for any emergency.
- TYPES OF CAR INSURANCE
- Comprehensive car insurance plan
Complete protection is offered against the damages caused to your car due to an accident or a road-mishap under a comprehensive plan. It provides coverage for the damages to your car, third-party legal liability, theft, along with the personal accident coverage.
- Third-party car insurance plan
Coverage against any legal liability arising out of injuries to a third-party when the policyholder is at fault is provided by a third-party car insurance plan. All the damages and injuries caused by the vehicle to a third-party person or property are covered. It is compulsory for every motor vehicle owner to buy at least third party car insurance coverage in India, as per the Motor Vehicles Act, 1988.
You can make the process of switching insurers much smoother by simply updating yourself with the pros and cons of cancelling a plan.