Should you switch insurers while car insurance renewal process

Business Desk, Delhi Magazine: Car insurance is a mandatory expense for car owners in India. That being said, Car insurance renewals have become a hot topic of discussion amongst policyholders. The growing competition in the auto insurance space has got all insurance companies vying for the attention and business of car owners.

It is a common practice that policyholders can contemplate switching their motor insurance service provider at the time of renewal. While there are no stipulated timelines for these, typically a switch is best done while renewing so as to not lose benefits already paid for. A number of factors come into play to influence a policyholder’s decision to make a switch.

Around the time of Car insurance renewals, individual policyholders can take a call on whether they would like to stick around with the same insurer or look out for a different one.

Listed are some of the major criteria that can help you make a decision about your auto insurance company!

Age

Car insurance rates, much like ours, are constantly evolving based on our current circumstances and social standing. Premium rates on car insurance policies can decrease once the policyholder reaches a certain age. Example: People above the age of 30 are considered to drive more safely compared to those below that threshold. Thus, a policyholder may be able to avail of a discounted premium rate when he/she reaches a certain age.

Shift in ownership status

Most insurance companies offer discounted premiums when the policyholder moves from a rented accommodation to their own place.

Change in the number of drivers

Whenever there is a shift in the number of people manning one four-wheeler, the premium rate on that vehicle will change. In such cases, insurers advise getting comprehensive coverage for all the members who drive that insured two-wheeler.

Change in the marital status of the owner

Most insurance companies offer attractive discounts on premium rates for married folks. Thus, you can always inform your insurer about your nuptials. You can also check with other auto insurance dealers about discounts if any!

Change in employment or residence

When you move closer to your place of employment, chances are your miles driven every day to reduce considerably. This is an added advantage for you when you have to negotiate for a discounted premium rate with your insurer at the time of your car insurance renewal.

More than this, there are a couple of other reasons that you may need to factor into if you are contemplating switching your auto insurance company.

When premium rates change

Insurance companies conduct regular assessments on the risk involved with each of their policyholders and adjust the insurance premium rate accordingly. This can substantially increase your premium rate at the time of your car insurance renewal. Thus, always keep a lookout for other companies that offer car insurance policies to have an easier switchover. It is very much possible that you will find an insurer that offers your required coverage at half the premium that you may be paying right now.

Unavailability of cashless claim settlements

Cashless claims are easily the most attractive bait that insurers can use to lure in new clientele. With this feature, it becomes easier for policyholders to work on claim settlements without the added hassle of running around for reimbursements. In case your existing insurer does not offer this facility, you can always choose to switch to a new insurer during your car insurance renewals.

Inadequate add-on covers

Car insurance companies should be able to offer add-ons to exemplify their basic coverage under a comprehensive coverage plan. These add-ons can be uniquely specific to each individual but may be quite important for them. Example: A daily allowance cover allows for the reimbursement of travel expenses incurred by the policyholder when the insured four wheeler is sent to a garage for repairs. There is also an engine protection cover that secures the policyholder against damages incurred to the vehicle’s engine due to natural calamities. If these key add-ons are not available with your current insurer, you can always consider switching over to a different auto insurance provider.

Issues with customer servicing

Customers are at the forefront of any business hence, a strong customer support team that is well-equipped to handle the queries of the customer is an important requirement for insurance companies. So if you are currently dissatisfied with the customer service at your current insurer, you can always consider switching insurers.

After running through these pointers, if you are still convinced about switching your auto insurance company, ensure that you time it around the time of your car insurance renewal. Though most organisations do allow for a policyholder to switch before the end of the term, some companies levy a penalty. In such cases, it is best to do your research and then make a move.

If you are currently on the verge of switching to a new insurance service provider, it is worth trying out Cholamandalam insurance. With a wide range of add-ons to choose from and a robus customer support reputation and a reliable network of garages, this is a one stop solution to help meet all your car insurance needs in a seamless manner.