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How to Change/Switch Car Insurance Provider - A Complete Guide
Team AckoFeb 27, 2024
There are several good reasons to change car insurance providers. Shopping around for a new car insurance policy or an insurer can be crucial to ensure that the insurance coverage is adequate and that you are not paying more than you should for your policy. This article will cover how to change car insurance providers and highlight the benefits of switching to a new insurer.
Contents
- How to switch to a new car insurance provider
- Things to consider before switching car insurance provider
- Step-by-step guide on how to switch your car insurance company online
- Advantages of changing car insurance providers
- Disadvantages of changing car insurance providers
- Points to keep in mind while switching car insurance providers
- Top 6 reasons for switching to a better car insurance company
- 1. The credibility of your current insurer is not satisfactory
- 2. You are getting a limited number of services
- 3. Your car insurance company does not provide the required add-ons
- 4. You are paying more than required
- 5. You are not getting the best advice from your insurer
- 6.You are not able to set the desired IDV
- Is it better to stay with the same insurance company?
- Merits of staying with the same insurance company
- 1. Builds a trusted relationship
- 2. No hidden costs or fees
- 3. Ease of renewing the policy
- Demerits of staying with the same insurance company
- 1. You may be paying more
- 2. Poor claims service
- 3. Lower Insured Declared Value (IDV) on renewals
- 4.Losing the No Claim Bonus (NCB) is a misconception
- Is switching car insurance after an accident a good idea?
- Things to know about car insurance cancellation
- Things to know before switching car insurance after an accident
- Frequently Asked Questions
How to switch to a new car insurance provider
The current insurer can be changed by looking for a new car insurance company and buying or renewing a car insurance policy from the new insurer. You must conduct basic research while selecting the new insurer and then buy a policy to avoid a bad experience.
A car insurance provider can be switched when the current car insurance policy is nearing expiration. In an extreme situation, you can also buy another policy mid-coverage in case of a bad claim experience with the current insurer.
Things to consider before switching car insurance provider
The most common mistake people make while selecting an insurance company is to make haste while getting their car insured. As a policyholder, you need to invest some time in analysing your requirements and understanding how good an insurance company is. If you are confused about switching to a new insurer, then the following points will help you make a clear decision.
1. Premium
It is time to change the insurance company if you realise that you are paying more premium for fewer features. Take a look at the current coverage of your car insurance policy and the services offered by the insurer and ask if they offer value for money? If not, then it’s time to change.
2. Quality of service
One should be free of worry with respect to car insurance upon choosing a good insurer. The overall quality of service will help you decide if you want to switch to a different insurance company.
3. Customer service
Are the customer care executives of the current insurance company well trained to guide you through the process or resolve your queries? If you keep waiting on a loop of automated responses without a proper solution, you should consider switching to a new insurer.
4. Confusing user interface
Nowadays, most insurance companies have an online presence. There are no set guidelines on how an insurance company should design their user interface for a website or a mobile app. This could lead to a bad or an outright worst experience while buying a policy, availing of a service, or even filing a claim. If this is the case with you, then consider changing the insurance company.
5. Lack of additional coverages
Additional coverages, or add-ons as they are popularly called, are not always necessarily available at all insurance companies. Add-ons like Roadside Assistance, Zero Depreciation, Engine Protection, etc. are useful for a car owner. These may also help increase the claim amount in some cases. If you need such add-ons, which are not offered by your insurer, you should consider changing the insurance company.
Step-by-step guide on how to switch your car insurance company online
Switching a car insurance company is a simple process when done online. There’s no need for paperwork to buy car insurance online. An important step in switching insurance companies is comparing car insurance. It helps to know the current trends in the car insurance market. Here are the steps to change your car insurance company.
Step 1: Analyse your requirements
The first step toward buying car insurance or switching the insurance company is to analyse your requirements thoroughly. This helps in avoiding the purchase of unnecessary coverage. Additional coverage only leads to a higher premium. To analyse your requirements, consider the daily usage of the car, age and experience of the driver, driving habits, etc.
Step 2: Research and compare policies
Nowadays, new and efficient car insurance companies are selling policies. The car insurance market is brimming with competition, making it extremely easy to compare similar types of multiple products. It allows you to get the most features for the lowest price. You can get a free car quote using a car insurance premium calculator and compare plans accordingly.
Step 3: Check suitable coverages
The next step is to check if the policies include the coverage that you require. Choose a policy that offers full coverage at a lower price. Always prioritise coverage before the price of the policy. For example, ACKO offers multiple car insurance plans to choose from as per your budget.
Step 4: Check the online reputation of the insurer
After selecting the most suitable policy, move on to check the online reputation of the insurance company. Visit the social media handles of the insurance company to read user testimonials and online reviews for that insurer. Ideally, the company should have more positive reviews and fewer negative ones.
Step 5: Check the Claim Settlement Ratio (CSR)
Another parameter in choosing a motor insurance company can be the claim settlement ratio of the insurance company. It is the ratio of the number of claims settled to the number of claims received. Some people purely judge an insurance company by its CSR, however, there are multiple factors that affect the CSR, and a good insurance company may have a comparatively low CSR. Thus, don’t look at CSR in isolation.
Step 6: Begin the purchase journey
Visit the insurance company's official website and look for car insurance policies. Enter your car’s registration number and other details as required. Choose the desired type of car insurance coverage and continue with the purchase journey.
Step 7: Choose the right IDV
If you are buying a Comprehensive Car Insurance Policy, you will be asked to declare the IDV of the car. IDV means Insured Declared Value. It’s the approximate current market value of the car. IDV comes into the picture in case of car theft or extreme damage.
Step 8: Choose the required add-ons
Add-ons are additional coverages that increase the scope of your car insurance policy. Some add-ons offer additional services while others increase the claim amount. Choose the necessary add-ons that suit your needs.
Step 9: Go through the terms and conditions of the policy
One of the most important aspects of switching to a new insurance company is reading the current insurer's terms and conditions. It is a good practice to familiarise yourself with the new terms as they will help avoid claim rejection.
Step 10: Make payment
After reading the terms and conditions, proceed to make the payment for the chosen policy. In the case of a digital-first insurer, you will be able to download your car insurance policy instantly after the payment is processed.
Advantages of changing car insurance providers
A customer-centric insurance company can provide the following advantages.
1. Enhanced coverage
Car insurance is a financial backup that is helpful in case of an unfortunate event. An insurance company should provide complete coverage and prompt services as per the policy terms in exchange for the premium you are paying.
2. Better price
Car insurance comparison can help you buy the right car insurance policy at a lower price. The new insurer may prove to be light on your pocket if chosen correctly.
3. Better services
A good car insurance company will provide quality services in a timely manner. You may have to follow up less if the insurance company is dedicated to providing better services. For example, modern insurers provide services via a user-friendly mobile app.
4. Experienced customer support
A good insurer will have an experienced and responsive customer support team that will help you resolve your concern and provide the best solution.
5. Better value-added services
A customer-centric car insurance company provides useful value-added services like accommodation in case of a breakdown, fast repairs, instant claim settlement, etc. These enhance the “happy-customer” quotient of the company.
Disadvantages of changing car insurance providers
Just like every coin has two sides, changing your current insurance company also has a few downsides. Here are the disadvantages of switching to a new car insurance company.
1. It might take some time to understand the new process of the new insurer. Thus, you might have a cumbersome task of learning about how transactions take place between you, the customer, and the insurer.
2. If proper research regarding the new insurer is not undertaken before switching, you might not receive a hassle-free insurance experience.
It is clear that the advantages of switching to a better insurer outweigh the disadvantages. Thus, go for the best available car insurance company according to your needs to avail the best services as a car owner. Also, remember to be judicial while selecting add-ons as they would increase the cost of your car insurance policy.
Points to keep in mind while switching car insurance providers
Here are some key pointers you should keep in mind while changing car insurance providers.
1. Current policy should be cancelled
Changing your car insurance company does not mean that you simply buy a brand new policy. In some situations, you might probably be halfway through your current policy, the benefits of which might still be intact. You have spent your hard-earned money on this policy. So, make sure you cancel the current policy before shifting to another, and you may even get a refund for the remaining period.
2. Transfer the No Claim Bonus
If you have not made a claim against your car insurance policy in the previous years, you might have accumulated something known as a No Claim Bonus (NCB). When you switch your insurer, ask for an NCB Transfer Certificate from your current car insurance company. This will enable you to enjoy the NCB in the car insurance policy with the new insurer.
3. Know what went wrong
To avoid the hassle of switching insurers, again and again, find the key reason for what went wrong with the previous one. Was the company providing unsatisfactory services? Were the employees not trained enough? Was the policy too costly? Knowing the reasons can help you pick a better insurer. For example, you can opt for an insurer with good customer service reviews if you have faced customer service issues in the past.
4. Research is the key to the best policy
If you are looking for the best car insurance policy, you must invest some time in research. You need to know your exact requirements. Your policy should reflect your needs. The cost, features, and services should be in accordance with what you require or expect from your car insurance policy.
5. Is the new one good enough?
Just as you need to research your requirements, you also need to be 100% sure that your new car insurance company is the best one you can afford. Your new insurer should provide excellent pre and post-sales services, offer a feature-rich policy and have a good reputation in terms of reviews and ratings.
Top 6 reasons for switching to a better car insurance company
Here are the top reasons for changing to a better car insurance company.
1. The credibility of your current insurer is not satisfactory
Before the dawn of the internet, people had to rely on word of mouth to know the credibility of a car insurance company. However, with the help of social media and search engines, one can see a quantitative measure (in the form of stars or numbers) to better understand the credibility of a car insurance company.
Additionally, users leave comments or testimonials that talk about their experience with the company. You should look for a better insurer before having a bad experience if the credibility of your current car insurance company is low.
2. You are getting a limited number of services
Some car insurance companies may offer a wide range of services while others may not. If you are a customer of the latter type of company, you need to consider switching to a better car insurer. Look for an insurer that provides multiple useful services.
3. Your car insurance company does not provide the required add-ons
When you buy a Comprehensive Car Insurance policy, you can buy additional coverages like Zero Depreciation, Roadside Assistance, Engine Protection, etc. However, not all car insurance companies offer every add-on. This can be problematic if you need a specific add-on and it is not offered by your insurer. In this case, switching to a better car insurance company is a good idea.
Imagine you do not have a Roadside Assistance add-on and get stranded on the road due to a car breakdown. You will have to arrange all the required support all by yourself. Whereas, if you had this add-on, you wouldn’t have to go through this hassle. Thus, look for an insurer that offers several valuable add-on covers.
4. You are paying more than required
In today’s time, car insurance prices have become competitive. You are likely to find a better deal if you are up-to-date with the current car insurance prices. Thus, always watch out for what is going on in the market when your car insurance policy is nearing expiry.
You need to review your current car insurance coverage and match it with your requirements. You then need to find the right policy. Compare car insurance online to find your ideal car insurance policy. After comparing the coverage and services, take a look at car insurance prices and go for a lower one without compromising on the coverages or services.
5. You are not getting the best advice from your insurer
Not every policyholder is an expert when it comes to car insurance. People need proper guidance to understand what they are buying. In this case, if your current advisor fails to understand your needs, you might end up either underinsured or over insured. Both situations will lead to a monetary loss for you.
Look for an insurance company that is good at customer service and provides great advice regarding buying and renewing car insurance. An ideal insurer should have a decent turnaround time for addressing your queries. This will be helpful at the time of claims, and you can also have a smooth car insurance claim settlement process.
6.You are not able to set the desired IDV
IDV is the Insured Declared Value of a car. You, as a policyholder, need to set the right IDV for your car insurance policy. IDV is nothing but the approximate current market value of your car. Note that setting a higher amount will increase your car insurance premium while setting a lower amount will reduce your claim amount in case of a major claim like ‘total loss’.
Insurance companies usually provide a range within which you can set the IDV for your car. If your insurer is not providing the desired range or not allowing you to select the ideal IDV, you might set a higher or lower amount than required. Both cases can mean a monetary loss for you. Thus, switch your insurance company if you are not getting your car's desired range of IDV.
Is it better to stay with the same insurance company?
Car insurance is an integral part of the ownership of the vehicle as it provides financial security against damages to the car and third-party liabilities. Apart from providing financial coverage against accidental damages, you also need motor insurance as it is mandatory as per The Motor Vehicles Act, 1988.
You pay premiums at periodic intervals in return for financial security. But is that enough? How about an insurer such as ACKO which provides more than just financial protection? Read ahead to know about the advantages and disadvantages of staying with the same insurance provider.
Merits of staying with the same insurance company
Depending on your insurance company and the type of policy, insurers provide a wide variety of benefits so that you stick with them. Generally, these benefits are linked to the period that you have been with the company. Here are the benefits of sticking with the same insurer.
1. Builds a trusted relationship
Staying with the same insurance company for several years can help you build a trusted relationship with the insurer. Moreover, you understand how to raise claims, know turnaround time, and acquaint yourself with the services provided by the insurer. Also, when you stick with an insurance company, the insurer understands your driving behaviour and claims history to provide better policy features.
2. No hidden costs or fees
With a long-term relationship with the insurer, you get to learn about your car insurance policy’s terms and conditions, features and benefits. For example, with a deeper understanding of the policy, you are aware of any hidden charges or costs, especially when you raise a claim.
3. Ease of renewing the policy
When you renew your car insurance plan with digital insurers such as ACKO, you can instantly visit the website or mobile app to renew the plan without paperwork. It is that easy.
Demerits of staying with the same insurance company
While sticking with the same insurer has its benefits, shifting to a new insurer has several advantages. For example, if you are looking for an affordable car insurance plan, a faster claim process, and hassle-free procedures, digital-first insurers such as ACKO offer plans that are unique and easy on your budget.
Here are some of the demerits of sticking with the same insurance company.
1. You may be paying more
When the time has come to renew the policy, you may go ahead and renew the plan as a routine task. However, have you tried comparing car insurance plans in the market that may be affordable? New-age digital insurance companies such as ACKO offer low-cost premiums as we can save on operating costs due to the direct-to-customer model and 100% digital infrastructure.
With the no-commission model, ACKO can design a low-cost car insurance policy along with superior services so that you can relax and be assured that you receive the best price you pay. Therefore, it is prudent to compare and insure your car with insurers such as ACKO for a hassle-free experience and affordable motor insurance plans.
2. Poor claims service
When a claim is raised, you usually see the best or worst of the insurer’s service. This is because claims are where most insurers are put to the test, and how they service the claim says a lot about their capabilities and how much they value their business.
Claims that are handled quickly, smoothly, and without any hassles are a great experience. However, if the experience is not smooth, it is an indication that you better switch to a new insurer.
Being a digital-first insurance company, ACKO makes it easy for you to raise claims without much documentation. You can visit the website or the mobile app to answer a few details of the damages to submit your claim.
3. Lower Insured Declared Value (IDV) on renewals
Did you know that your claim amount is based on the IDV of your car? If you have been provided with a lower IDV during renewing the existing car insurance policy to keep the premium lower, you will receive a comparatively lower claim amount when you file a claim. Ideally, you should have the option to choose the correct IDV from a range.
4.Losing the No Claim Bonus (NCB) is a misconception
A common myth is that you will lose out on the NCB if you switch to a new insurance company. But, that is not the case. When you buy or renew the plan with the new insurance company, you will be asked to provide the previous policy details and the NCB. Then, the insurance company will verify the NCB accrued on your previous policy and incorporate the discount on the renewal amount.
As you earn the NCB, you continue to enjoy the discount even if you switch insurers. Hence, you can move to a new insurance company without worrying about losing the NCB and get better services or low-cost insurance premiums with the new insurer.
Is switching car insurance after an accident a good idea?
Car insurance can protect you from the financial implications of a car accident. However, suffering a car accident can be devastating none the same. It could also cause your car insurance premium to increase in the upcoming renewal cycle. And this may cause you to wonder if shifting your car insurance after an accident is a good idea. Let’s find out.
When can car insurance be switched?
Technically, car insurance can be changed at any time. Not just during car insurance renewal. However, renewing a policy with a new insurer is convenient when the previous policy is about to expire. This way, there’s no need to get into the policy cancellation and refund process.
Can you switch car insurance after an accident?
Yes, changing car insurance after an accident is possible. Although, it may cost you more to switch car insurance plans than to stick with your current plan. Usually, car insurance is switched to save money on the policy premium. However, switching your car insurance in case of an unfortunate accident may only immediately increase your new policy premium.
How to switch car insurance after an accident
If you raise a claim for accidental damages, you may incur an increase in the policy premium in the forthcoming cycle. This is because your insurer might consider you a high-risk customer. This may tempt you to change car insurance after an accident because you may think that it will save you money.
But in reality, that is not the case. Right after an accident, switching car insurance providers will still result in a higher premium being charged. Because your new insurer will consider you as a high-risk customer too.
Your current insurer will not update your new premium until the renewal cycle comes around. Whereas a new insurer may increase your premium immediately. Thus, consider switching your insurance plan after approximately a year to avoid an immediate rise in premium.
When should I not switch car insurance?
Although switching car insurers may save you money on your policy premium more often than not, it may be better to stick with your current plan in some cases. As previously mentioned, in the context of accidents, it may be more beneficial to stick with your current plan and choose another one after a year. That way, you will be able to save money and select a more suitable car insurance policy.
Another time to not make the switch would be if your policy is nearing expiry. Here, instead of switching mid-policy, you can renew the policy with a new insurer starting from the previous policy’s expiry date
Things to know about car insurance cancellation
If you are looking to switch your car insurance, below are some points you need to keep in mind regarding car insurance cancellation.
If you decide to discontinue your car insurance policy, you should inform your insurer as soon as possible. The cancellation process may take up to 5 to 7 days.
An executive may be allotted to you to guide you through the process. Sometimes, you may have to sign a document or send an email to initiate the cancellation.
Make sure that your car insurance certificate is returned. That certificate may be crucial for preserving the accumulated No Claim Bonus (NCB).
Check if you are eligible for any refunds. Usually, if you have pre-paid the entire policy premium, you may receive a refund on a pro-rata basis.
Choose a new car insurance policy meanwhile. Failure to possess one may result in incurring legal penalties.
Things to know before switching car insurance after an accident
Below are some of the things you should know before switching your car insurance in case you have faced an accident scenario.
Review coverage: When buying car insurance, choosing a plan that offers sufficient coverage is important. We recommend a Comprehensive Car Insurance Plan as it offers coverage for Own Damages and third-party liabilities.
Compare plans: You can browse online, compare car insurance plans and select a policy that has the best cost-to-benefit ratio. You can also check out the social media handles of a prospective insurer to get an idea of their customer perceptions and ratings.
Check insurer’s claim settlement ratio: In insurance, a claim settlement ratio refers to the percentage of claims settled by an insurer over a particular duration. So, choose an insurer that has a high claim settlement ratio.
Find out about the claim settlement process: Choosing an insurer with an easy claim settlement process is important. That way, you don’t have to stress out while raising a claim. Usually, online insurers have an easy process compared to their offline counterparts.
Check for necessary add-ons: With a Comprehensive Car Insurance Policy, you can also select add-ons. Add-ons offer additional coverage to the base plan. Make sure that the plan you choose has the add-ons you require.
See the number of network garages: Usually, car insurers have tie-ups with certain garages. If you avail of repairs at these garages, your insurer will directly settle the claim with the garage for covered expenses. Check if your prospective insurer has a sufficient list of accessible garages.
Frequently Asked Questions
Is it bad to switch to an insurance company in case of a bad experience?
No, a policyholder pays hard-earned money to buy insurance. A bad experience can greatly reduce the trust factor between the policyholder and the insurer.
Can a car insurance policy be cancelled in the middle of the policy period?
Yes, one can get the policy cancelled anytime during the policy period.
When is a good time to switch car insurance?
One should switch their car insurance provider in case of repeated bad experiences, high turnaround time, or if a better car insurance policy is available in the market.
Is it possible to cancel a car insurance policy after filing a claim?
Yes, depending upon the terms and conditions of your insurance company, you may be allowed to cancel the policy after filing a claim.
Will I get a refund for the paid premium if I cancel the active car insurance policy?
You may get a refund for the premium on a pro-rata basis. That is, the premium will be adjusted to correspond with the remaining policy period.
Is it a bad idea to change car insurance companies frequently?
Yes, changing car insurance companies frequently may result in higher premiums as you may lose out on certain discounts offered by some insurers.
If I switch to ACKO, will there be an inspection before my car insurance policy is renewed?
If your previous policy has expired, then ACKO might inspect the car before insuring the vehicle. However, if you renew the policy before the expiry date, there should be no inspection. However, things might vary on a case-to-case basis. Go through our quick purchase journey to know the details.
Should I cancel my previous car insurance policy before I switch to a new car insurance company?
Policy cancellation might be needed if a switch is made in the middle of the policy tenure. However, if you are planning to switch to a new insurer where the coverage will begin after the current policy expiry date, you don't have to cancel the existing policy.
How to shift to ACKO car insurance?
You can change or switch to ACKO by purchasing or renewing a car insurance policy via our website or mobile app. Download the app or visit the website, share a few details of the vehicle and previous policy, and insure your car instantly with us without any paperwork.
Will I lose discounts and other perks after switching car insurance?
No, certain benefits like a No Claim Bonus can be carried over provided you receive your car insurance certificate during cancellation and share the same with your new insurer. However, some benefits that are insurer or plan-specific may not be transferable.
Can I renew my car insurance policy after the policy renewal deadline?
Yes, you can renew your car insurance even after the policy renewal deadline. Usually, insurers provide a grace period for renewal. During this time, you can renew your policy. However, you may not be protected under any coverages until the policy becomes active.
| Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. |
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