Car insurance policies are valid only for a specified duration. Depending on the type of policy, it can be either valid for a year or for three years. Whatever be the duration, this is defined right at the beginning to avoid any form of ambiguity with regards to tenure of the insurance coverage.
When you buy a car insurance online, you look for various features that meet your requirements. Once satisfied, it is only then you make the purchase. As you need changes, driving situations change, you might want to have either better coverage or better features. Whatever be your reason, you are free to switch your car insurance provider.
To answer the burning question on top of your mind – When can the insurance company be changed? The answer to it is – anytime! However, it is generally advisable to go about this procedure at the time of renewal. Switching your insurance plan during the policy tenure will require you to cancel the current policy and then transfer the ongoing benefits to your new insurer. This might seem tedious but if need be, can be done.
Here is what you need to think of when pulling the plug on your current insurer –
Cancellation of current policy
As discussed above, if you change your insurer mid-way through the tenure, you are required to cancel the existing comprehensive or third party car insurance policy. This step needs to be followed by transferring any accumulated benefits like a no-claim bonus to the new insurer. Thus, switching the policy mid-tenure is not easy. So, remember your decision to switch the insurance company is just half of the process is done during the policy period. If the same is chosen at the renewal date, you no longer need to worry about canceling the existing policy since its coverage has already ended.
Transferring no-claim bonus
No-claim bonus (NCB) is the benefit that is provided to the policyholders in form of concession in renewal premium. This benefit lowers the existing premium but is only available for comprehensive plans among the two types of car insurance policies. When you switch your car insurance provider, the accumulated NCB benefits need to be taken over to the new insurer using an NCB transfer certificate. For online policies, this facility can be availed by simply mentioning the percentage of NCB which the new insurance company then confirm with the previous insurer.
Understand the reasons for change
Technically, there is no limit on how many times you can switch your insurer, but it is a good practice to clearly be aware of the reasons for change. Knowing them will help to avoid the same mistake again and ensure your new insurance policy meets all your needs adequately.
Research before you switch
Researching on a suitable car insurance plan can help you in the long run to avoid any disappointments with your insurance policy. You can use tools like car insurance calculator that help to make a head-to-head comparison of the various policy features offered by the insurance company.
These are some nifty tips that can help simplify the process of switching your car insurance provider. So, remember if you are not happy with the current insurance policy, you no longer need to continue with one and make a hassle-free switch keeping the above tips in mind. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.