How to Switch A Car Insurance Company?

Published On Mar 28, 2021 11:00 AM By InsuranceDekho

Here is the complete guide as to how to switch a car insurance company.

The validity of a car insurance policy is generally one year. After this, policyholders have to renew their car insurance plans. However, if they are not happy with their present insurer, then they can switch their car insurance company and avail themselves of the services from a new insurance company without losing out on any benefits. If you also want to change your insurance company, here are the steps with which you can make an informed insurance company switch. 

1. Compare Different Insurers

Compare different insurance companies based on your requirements due to which you are switching the company. The parameters to compare insurers could be policy coverage, benefits, discounts, deductibles, etc. It will help you find an insurance company which could offer as per your choice to quite an extent, which will eventually allow you to get the most out of the car insurance policy.  

2. Investigate the Company

Once you have finalised an insurance provider after comparing different insurance companies, you should investigate it. No matter how good coverage it provides, but, delivering them effectively and efficiently is what matters. The most suitable approach to examine an insurer is to look for its Claim Settlement Ratio (CSR). It not only denotes its financial soundness but also manifests its efficiency to settle the claims. 

3. Look for Additional Benefits

If you manage to find a company that provides optimum coverage and holds a reputation in the market, you should peep into the additional benefit it offers. The benefits can include add-on covers, riders, discounts, deductibles, rewards, etc. These points come into play when you want to extend your policy coverage, lower premium, and so on. A 24x7 prompt and active customer service and online car insurance services via the website and mobile app are some of the best benefits. 

4. Contact Your Insurance Company

When you have finally chosen the insurance company where you want to switch, you should then connect with your existing insurance company. It is required for both moral and practical reasons. As the company has served you, therefore, you should leave them on a good note by giving them proper intimation about your exit and understanding them about any penalty or fee which you require to pay, which will eliminate any future trouble. Also, your insurance company can try to negotiate and can put forward some better deals to meet your requirements. 

5. Cancel Your Policy and Make the Switch 

When all the policy-related ground work is completed, you should proceed to make the switch. To begin with the process, you should implore your existing insurer to cancel your policy after which your new insurer must start the process. It is recommended to cancel the policy rather than ceasing the payment of the premium for your last policy. Lastly, you should swap your old car insurance card to get the new insurance policy card once the new insurance cover becomes active. 

Conclusion

The insurance companies allow you to switch to any insurer whenever you wish to change. However, insurers hold the authority to charge you with penalties for early cancellation, but with proper research about the offerings and regulations of your new and old insurer, you can avoid all the hurdles and make the smooth switch. 

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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