Home >Money >Personal Finance >When you should consider switching motor vehicle insurer

Renewing your motor insurance policy with the same insurer for a very long time can be a costly mistake. Therefore, it is important to monitor the offerings in the market and compare policies between insurers when buying/renewing a motor insurance policy.

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"Whenever your existing motor insurance policy ends, you can switch the insurer without any loss. However, you need to ensure that you have applied your No Claim Bonus (NCB) in your new insurer's policy," said Animesh Das, Head of Product Strategy, ACKO Insurance.

Here are 6 reasons that should prompt you to switch insurers

1. To save money on premiums

“Even if you found the cheapest rate when you first signed up for motor insurance, the formulas insurers use to set insurance premiums change frequently, so the insurer that gave you the lowest price 1-2 years ago might not be the best option now," said Col. (retd) Sanjeev Govila, a Sebi-registered investment adviser.

Basically, your insurer might increase your policy premium rates for different reasons such as car modifications, claim made in the last year, etc., during the renewal period. Under such a case, one can look for options (insurers) that can offer you a better deal by comparing the policies of the different insurers. It could be possible that you get a policy that would offer you the same or enhanced benefits at better rates than your current policy. Researching and comparing are the key elements to get the best options.

2. Paying more premium for fewer features

If you realise that you are paying more premium for fewer features compared to what the competition is offering, then it is time to change the insurer. All additional coverages, or add-ons as they are popularly called, are not necessarily available with all insurers. Add-ons like roadside assistance, zero depreciation, engine protect, etc., can be of use for a car owner.

Rakesh Goyal Director Probus Insurance said that add-on covers help to boost the coverage and maximize the benefits offered by a basic comprehensive motor insurance policy. “You can find the right sort of coverage for your vehicle through these add-on covers when needed. However, if your insurer doesn't offer you sufficient add-on covers, then you must think of looking for an option that offers you adequate add-on covers," Goyal added.

3. Cashless garage

If your current insurer doesn't offer this benefit, you should explore other available options as this is an attractive feature owing to its offerings. The cashless garage option ensures cashless claim settlements wherein you can get your vehicle (at a network garage) repaired without paying for it except the compulsory deductible/ file processing charges.

4. Unpleasant customer service

Customer service is the primary element to magnify customer trust. If your current insurer's customer service is not offering you the desired support, you can consider switching your policy to some other insurer that has better customer services. You can go through the reviews or feedbacks of the other insurers (where you are planning to switch) to get an idea of their customer service offerings.

“One should be free of worry with respect to motor insurance when one has chosen a good insurer. The overall quality of service will help you decide if you want to switch an insurance company," said Govila.

5. Denial of a claim for no justifiable reason

If your claim gets denied or severely curtailed for no justifiable reason, you can look for another insurer. “A claim denial can cause you to feel financially insecure, especially if you cannot afford to repair or replace your car. Take a look at the current coverage of your car insurance policy. Do you have to pay more money than the insurance coverage you are receiving in case of a claim? If yes then look for a new insurer," explained Govila.

6. Confusing web user interface

Nowadays, most insurers have an online presence. A poorly designed website or mobile app could lead to a bad or an outright worst experience while buying a policy, availing a service, or even while filing a claim. If this is the case with you, then consider changing the insurer.

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