While you may think that it is beneficial to continue with the same insurer over a length of time like you would do with other insurance policies, industry experts think otherwise. They recommend switching insurers every 2-3 years to save up to 50% per year. However, switching your insurer could prove costly if you are not aware of the following pointers. These smart steps could surely help you make an informed switch on your vehicle insurance:
Don’t Switch Without Comparing: The IRDA (Insurance Regulatory and Development Authority) has made it possible for insurance companies to provide insurance for up to 3 years. You can ask for a free quote from insurance companies and compare them online. You should compare
Car insurance policies
with respect to coverage, discounts, limits, benefits, and deductibles to select the one that meets your specific requirements.
Determine Coverage Size: Based on your financial goals, your investment in car insurance will be impacted. If you are looking for a cheap car insurance, then it is better to think thoroughly. Just because it is cheap doesn’t mean it serves its purpose. To make the most out of your car insurance policy, adequate research is very important. Select a plan that is in line with your financial goals without burning a hole in your pocket.
Check for Penalties on Switching: There are two ways an insurance company will try to retain business from you. Some insurers are quick to offer a discounted solution if you decide to leave, while others may have hidden charges that may be kept in place if you do decide to switch. Always pay close attention to the fine print to avail or avoid either case.
Check Insurer’s Background: It is always better to do a background check on the insurance company you choose to switch to. An important factor to consider is their claim settlement ratio. Other sources include friends, family, social media such as Facebook or Twitter for an idea of the company’s community involvement in their customer reviews.
Check Convenience Benefits: Convenience benefits include 24/7 customer care, online claims, policy management and repair tracking. Also, check for a mobile app for ease of use and payment methods available.
Cancel Your Previous Policy: Make the switch only after you are sure of your groundwork. It is advisable if your new policy takes effect before on the date that your old one ends. A single day of lapse shows on your record, leading to higher coverage rates. Another important measure to keep a clean record is to ensure that your old policy has effectively ended from your old insurer’s end.
Print Your Identity Cards: Since your
auto insurance
is a legal document, it is better to keep the ID up to date after the switch. Do not discard the previous insurance policy’s card and other related documents. Instead, keep a soft copy for personal records and any unforeseen emergency.
Closely following these pointers will ensure that your car insurance switch goes smoothly. However, if you require any other related information, contact us at PL-India Motor Insurance and we shall revert at the soonest. Alternatively, do email us at insurance@plindia.com
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