What are the Pros & Cons of Switching Your Car Insurance Provider?

Car insurance is a vital aspect of car ownership. If you have a car, you must have car insurance. But do you know that you can change your insurer if you are not happy with your current insurance company?

Road emergencies are unforeseen and no one can predict them. Insuring your car against road emergencies is crucial. Moreover, the third-party liability car insurance being a mandatory feature of India’s Motor rules, having a car insurance is unavoidable. Thus, everyone with a car buys insurance without fail. However, there might be instances that you bought a car insurance policy and later realized that you are not happy with the insurer and want to switch. So, what options do you have in that case? Can you change the car insurance company? If so, what are the pros and cons of changing your current car insurance company? Let us find out the answers to all such questions in this blog.

What’s Inside?

Why you should switch your car insurance company?

Since car insurance is an obligatory thing that a car owner must have, it is better for every car owner to search for the best car insurance companies. Thus, they can ensure to get the most affordable and value for money car insurance policy to suit their requirements completely.

4 reasons why you could look for switching your insurer to the best car insurance in India:

1. For Enhanced Coverage and Benefit:

You may switch to a new car insurance company if they are offering better benefits of coverage at the same premium that you are already paying. You can visit Paybima.com to search and compare different policies offered by different insurers and buy the best plan at your budget.

2. For Better Network Garages:

If your current insurer has a limited number of network garages that makes repair a difficult task, you may choose to leave the insurer to find a new one with a wide number of network garages.

3. If you Change Location:

If you have a transferable job or you have shifted for any other reason, you may like to explore options as per the requirement in the new location and change your insurer to move to a new one.

4. Poor Customer Service:

If the current insurance company is not offering better customer care service, which in most cases is a common problem, you may switch to a new insurer.  This way you can avail better, immediate and 24/7 customer assistance with the best car insurance company in India.

4 Guidelines to Switch your Car Insurance Company

1. Compare multiple plans and buy the best one:

The first guideline is to look for the best car insurance plan by making a comparison of policies in PayBima website. This way you get to see multiple deals from multiple insurers in one spot.

2. Know the past records of your insurer:

Before you seal your car insurance policy deal, try to find out the different important aspects of the insurer you are planning to buy the policy from, such as the claim settlement ratio of the insurance company. Check their social media handles to find out if they are trustworthy and capable of settling your claims when required. Read customer reviews and feedback. Don’t just settle for ‘cheap’ insurance plans, rather pick the policy that suits your needs as per your budget.

3. Look for maximizing your coverage:

A third-party car insurance can suffice you in taking care of the third-party liabilities. However, you also need to check your own car requirement in case of any damage. Hence, it is better to choose a comprehensive car insurance plan to get the maximum enhanced coverage.

4. Inform current insurer before cancelling policy:

Yes, you need to inform your current insurance company at least 30 days before you cancel your current plan. You must send a written application to inform them and to notify them to cancel your current policy.

When to inform the current insurer about the intended switch?

A 30-day notice period before cancelling the policy is required to be given to your insurer in case you intend to switch to a new insurer. Your current insurer might try to retain you by offering a lucrative deal like lowering your car insurance price during this time and to make you change your decision.

 Will the insurer levy any cancellation charges for switching?

It depends on when exactly you are planning to switch. If you are switching the insurer in the middle of the policy term, you may have to pay the reimbursement of your premium on pro-rata. However, if you are taking your time and switching your policy at the time of plan renewal, you do not required to pay anything to your insurance company.

Cons of Changing a Car Insurance Company

Here are some cons you may like to know before planning to switch your car insurance policy:

• There are chances that you may miss out on certain good deals if you leave your current insurer to get hold of a new one
• If you already have a trusted relation with your current insurer, you may take time to build that kind of bond with the new provider
• Also, some insurers even lower the premium amount in case the policyholder thinks of switching the plan. If you do not consider that, you may miss out on taking advantage of that opportunity

Switching your car insurance company has both advantages as well as disadvantages. It is essential for everyone planning to switch his/her car insurer to keep a note of both the aspects before strategizing the move.

Popular Motor Insurance Companies India, 2023

There are numerous car insurance companies offering several policies. Hence, it is always recommended to check car insurance online and look for various options available. You must compare plans  to ensure that you buy the best and most suitable policy for your car. Here you can use a car insurance calculator to calculate the premium you need to pay for different policies.

However, don’t keep your car uninsured while you search for the best offer. Make sure to insure your car as soon as you purchase it.  If not insured, you might be levied with fines by traffic police for driving an uninsured car.

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