Investing in a car insurance policy is essential for car owners to enjoy stress-free rides. However, you might realise that the policy is not the right fit for you only after buying it. In such cases, you can easily switch your insurer and pick a better policy. Car insurance can be ported without losing out on the No Claim Bonus (NCB), making it a profitable solution for moving out of bad policies. You can switch your insurer around the time of renewal of your current policy. The process requires less paperwork and substantially lower processing time when compared to porting a health insurance policy.
A comprehensive motor insurance policy consists of two parts i.e. Third Party and Own Damage. The Third-Party component is mandated by the Insurance Regulatory and Development Authority of India (IRDAI) making it fixed in nature. However, the Own Damage section contains various sub-components that differ from one insurer to another. When investing in a policy, pay attention to the second component to make sure it fits your needs.
Reasons to Switch Car Insurance
You should consider changing your insurer if you can relate to any of the following scenarios:
- Better deal: If your current plan doesn't cover your needs, you should search for better deals available in the market. When buying a policy, look out for plans that provide a wider coverage with necessary add-ons. If you already have a plan that covers all your needs and has essential add-ons like NCB protection, zero depreciation, etc., you can still switch your policy to a plan which provides all that at a cheaper premium.
- Service: Buying a good plan is the first step of the journey. Things can go wrong even after you invest in what seemed like a sound policy. The real test of a policy begins when you make a claim. After buying the plan, you might find that your local garage is not in the insurer's network. This takes away the option of a cashless transaction from you. Even if you make the payment from your pocket, reimbursement might take a while. These experiences can prove to be a hassle. Therefore, it is imperative to read the finer details when buying a policy. Switch to an insurer who has a good network in your location as it'll mean worry-free claims for you.
- Insured Declared Value: The Insured Declared Value (IDV) is the payout you will get from the insurers in cases of theft or irreparable damage to the car in an accident. According to the guidelines set down by the IRDAI, the IDV is calculated keeping the age of the vehicle in mind. The policy premium also depends on the IDV. While buying a plan, it might be tempting to settle for a policy with cheaper premium. However, insurers might compromise the lower premium with a decrease in the IDV. You should not settle for anything lower than a fair value of your vehicle as it might land you in financial woes when you file the claim. Choose a policy that gives you the ideal value of your car as the IDV.
Investing in a bad deal doesn’t mean you have to carry forward with it against your will. A simple switch to a better policy can help you considerably. Choose a policy that suits your needs and budget while providing a satisfactory coverage.
