Advantages and Disadvantages of Staying With An Insurance Company

Published On Aug 17, 2021 10:00 AM By InsuranceDekho

If you wish to stick to your existing car insurance company, read this article to find the advantages and disadvantages of staying with the same car insurance company.

Car insurance is mandatory to own by all the car owners in India as per the law of the Indian Motor Tariff. This doesn’t just allow you to drive a car on the road but also protect you from financial liabilities occur towards a third party or damages and losses sustained by your car. The third-party car insurance will secure you from damages incurred by a third party while a comprehensive insurance cover will shield you from damages incurred by your own car. 

Generally, car insurance plans last for one year and then they are required to be renewed. Now, it’s your choice whether you wish to continue with the same plan or find a new policy. To get clarification on this, let’s dig in some pros and cons of proceeding with an insurance company only.

Advantages of Staying With An Insurance Company

When it comes to continuing with an insurance company, there are some advantages attached to it which are as follow:

1. Additional Perks

When you choose to stay with an insurance company for long, there are different types of rewards your insurer could provide in terms of discounts and loyalty bonuses.

2. Trusted Relationship

Continuing with a single insurer, you get to build a reliable relationship with your insurer. It is crucial to get the support of your insurance provider in bad times and emergencies. With time, your insurer gets to know about your driving history that helps it to understand your policy requirements and offer deals accordingly.

3. Decreased Deductibles

Besides additional perks, some car insurance providers also lessen the cost of compulsory deductibles. The insurance companies generally offer a reduction in deductible to policyholders who continue to stay with them for a long time.

4. No Hidden Charges

When you renew your car insurance plan several times with the same insurer, you become aware of several terms and conditions listed in your plan. It helps you save yourself from hidden costs or charges while raising a claim.

5. Easy Renewal

While renewing your car insurance plan with the same insurance company, you just have to visit the website of your insurer and enter your policy number and make the payment for the renewal premium. But when you switch to a new insurer, you will have to enter all your details and also might have to go through the car inspection process again.

You may also like to read:- No Claim Bonus in Car Insurance: Know More? 

Disadvantages of Staying With An Insurance Company

Here are some cons of staying for a long period of time with the same car insurance company:

1. High Premium

Your existing car insurance policy may be offering you good coverage, but you may not be getting the best-priced plan. Things and prices change with time, hence, you can find the same policy coverage at a reduced cost by different car insurance companies.

2. Insufficient Coverage 

In addition to a higher premium, you might get stuck with a policy providing you with inadequate coverage. If the features, benefits, inclusions, exclusions, etc., in your policy, doesn’t suit you as per your requirements, you can anytime switch to a new car insurance company.

3. Missing Out On Add-Ons

When you want to expand your car insurance policy coverage, some add-on covers can come to your rescue. If your current car insurance policy could not serve you with some crucial add-ons, you can search for a new insurer and opt for one that is offering the add-ons as per your choice. You must not continue with a plan that could not render satisfactory services.

Also Read:- Tips To Avail No Claim Bonus For A Car Insurance Policy  

Take Away

No matter which car insurance policy you own, it will surely have a drawback. Continuing with the same car insurance company’s policy could bring in some advantages as well as disadvantages. In this article, we have tried to put both sides of staying with an insurance company for long with the aforementioned points. We hope it will help you make informed decisions pertaining to carry on with an insurer.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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