Buying a car insurance policy is a mandatory requirement as stated in the Motor Vehicle Act of 1988. With this, you can drive on the streets of India securely, as both you and any third party you come in contact with will be covered by your car insurance policy - if you have opted for the comprehensive car insurance plan. If you have opted for the third party car insurance policy, only the damage done to a third party will be covered.
The policy term for your car insurance policy lasts for one year, making it crucial for you to renew it once the term is close to ending. But this begs the question, do you continue on with the same car insurance company or explore a new option? To get better clarification on this, read on.
Pros and Cons Of Staying With The Same Car Insurance Company:
There are a number of pros and cons of renewing your car insurance policy at the same car insurance company. These include: Pros Of Staying With The Same Car Insurance Company
There are a number of rewards your car insurance company could offer when you choose to stay with them for a longer time. These regards are generally offered in the form of loyalty bonuses and discounts.
Trusted Relationship With The Car Insurance Company
When you stay with the same car insurance company, you get the advantage of building a trusted relationship with your insurance provider. This is extremely important as you can trust your insurer to have your back during emergencies and get in touch with them quicker. Another advantage of this is that your insurance provider becomes familiar with your driving history, and can understand your car insurance policy requirements more effectively.
Among the other perks and bonuses that can be available to you, some car insurance companies additionally give a reduction in compulsory deductibles. This is usually done for customers that have been there with them for a long time.
Get Accident Forgiveness Option
Some car insurance companies in India offer "Accident Forgiveness Option" to long-time customers. But only those customers that have displayed a good driving record are eligible for this. With this option, your first "at-fault" accident can be forgiven or not considered by the insurance provider. The advantage of this is that since you won’t have any accidents listed in insurer's records, you premium amount will be prevented from rising.
Unlike the No Claim Bonus, this benefit does not get transferred when you switch to another car insurance company.
Steer Clear Of Hidden Costs Or Charges
When faced with renewing the same car insurance policy, you have the added benefit of being intimately aware of all the terms and conditions listed in your plan. This helps you avoid incurring any hidden costs or charges when you file a claim. Additionally, when you switch to a new car insurance company, there’s a chance you have to pay a higher premium amount.
Ease of renewal
When renewing your car insurance policy with the same insurance provider, you just need to visit the company’s website or office, give them your policy number, and pay the renewal premium. But when you switch to a new car insurance company, not only do you have to provide all your details again, you might also have to face a vehicle inspection again.
Cons Of Staying With The Same Car Insurance Company
Incurring Extra Charges
Your current policy may be providing good coverage, but it doesn’t mean you are getting the best-priced car insurance policy. If you explore plans by other car insurance companies, you might find the same coverage you are getting here, but at a reduced price.
The Cover Might Not Suffice
Much like the previous point, you may have a well-priced car insurance policy but it might not be giving you adequate coverage. That is why it is crucial that you check all inclusions and exclusions in your plan. If it is not satisfactory according to your needs, switch to a new car insurance company.
You Could Be Missing Out On Better Add Ons
In the competitive world of insurance, there is always a chance that you find a more comprehensive range of add ons than your current car insurance company. With the advent of technology in the mix, online offerings of car insurance policies often have a number of add ons, not available offline. That is why you should always take a look at current plans being offered before you make your choice.
To avoid any confusion in getting your car insurance policy renewed, head to Coverfox - one of India’s leading insurance broking portals. Here, you can explore insurance policies from over 4o companies and get assistance from a team of experts that will guide you to the best decision for your needs.