Why should you change insurance service provider?

Car insurance is mandatory by law in India. People cover their car with relevant policies each year. However, experts opine that paying premium for your car coverage to same insurer for a long time can prove costly for you. They advise you should switch your car insurance companies after every 2 to 3 years so that you can save some money on insurance premiums. By switching insurers, you can save approximately 5-30% per year. However, switching needs lot of understanding and research so that you don’t get trap into irrelevant deals which might just not be suitable to purchase right car cover.

The article gives you some smart tips that will help you choosing the right insurance cover.

Compare & Shop

Buying auto insurance is not like as difficult as property purchase or starting a new factory. There are several hundred insurance companies in the market that offer policies at discounted rates, feature rich policies, flexible payment modes, hassle free claims etc. So compare the various options with prospective insurers and get a free quote of each. Check out the respective coverage, discounts, limits, benefits and deductibles to compare each insurer apples to apples. It will help you bring out a rational perspective on how various policies will affect you all along with the policy tenure.

Switching Penalties

It is possible that switching car insurance policies incur penalty by your existing insurance company. Every insurance company wants to keep the business with you alive and often lure you with discount offers to retain you back. But it’s better to see your benefits and take a judgmental decision on it. Sort out the penalty matters and then take a transition to next service provider.

Do Research

Your day-to-day life changes like getting married, relocating or having a baby born etc. might impact your car requirements. You might opt for bigger car, so obviously your insurance needs will affect as well. So it’s better you do a little bit of research here or there, before going for new cover with existing service provider. There are likely chances of numerous options, deductibles and limits available in the market. Obviously, you want to get the best coverage which you can afford comfortably.  This makes it important you research thoroughly and mapping your needs to the different options available in the market, would be an absolute imperative step.

Check Convenience

Many car insurance online companies have come up with 24 X 7 customer service taking customers concerns into consideration. They provide online service via email, chats or calls as well to manage the policy, claims and track repairs. Having a mobile app or an easy-to-use mobile site will be a big relief for customers as you get access and manage policy anytime and anywhere while on the go.

Switch & Cancel

Always make sure that you switch your policy well and then opt for cancellation from existing end. Ensure that while transition your car should not be left without cover else it will be serious financial loss during mishap in that phase.  Secondly, even a day lapse could lead to higher rates of coverage in the future. Start your new policy, cancel the old one and inform your previous insurer that you are ending the policy with them and confirm the same in written.

Company performance

Verify the performance; experience & financial strength of the car insurance company that you wish to buy the insurance from. For this visit their website or social media pages like facebook or twitter and check customer feedback, call up customer service team to check their approach, visit a branch and understand their problem solving ability, take a market review, call up friends or neighbors to take their opinion on particular company for its customer environment friendly solutions.