How To Switch Your Car Insurance Policy

When your car insurance policy is slated for renewal, the norm of thought and practice is to quickly pay the premium and stay with the same insurance provider you’ve been with for years. But ,I think, just like upgrading your car, you should switch your car insurer every few years and ensure yourself the best deal possible.

Here are simple steps to make a successful switch:

Carefully Compare Policies
When you decide it is time to move on from your current car insurer, first be sure to shop around and compare policies. With the arrival of ‘comparison websites’, not only can you scout for car insurance online, but you can also compare policies side by side. During your analysis, consider important factors like total coverage, deductibles, limits, benefits and other features before finalising the best fit for you.

Contact Your Current Provider
It is always advisable to contact your current insurer and intimate them about your decision. Many a time, in a bid to retain customers, they may offer competitive deals and discounts to keep you on board.

Check for Any Penalties
Typically, a car insurance policy spans for either 6 months or a year. During this period, if you plan to change your insurer, first find out if there are any penalties involved for cancelling the policy before the coverage term ends.  Accordingly, you can decide whether to switch immediately or wait until the term ends.

Check for Any Added Benefits
Other than the existing car insurance policy details, which include services and benefits, check what other features the insurer has to offer, such as a 24×7 call centre for customer care. Sometimes, these added benefits can help guide your decision while selecting your new insurance provider.

Look into the New Provider
Do your due research before signing on the dotted line. Ascertain the reputation and financial stability of the insurance provider. Also, cross-check their performance and customer reviews. Once you’re satisfied with the results, you’re good to move on.

Check the Gap
Before you buy car insurance policy, make sure there is no difference in coverage when you switch insurers. Also, do not close or cancel your old policy without having the new one in place. A lapse in insurance cover could have serious financial and legal repercussions. It could also adversely affect your future premiums.

Cancel the Old Policy
Once all the above steps have been carried out and everything has properly fallen into place, you can proceed with cancelling your old policy. You can either write a mail or simply call your current provider to inform them about the change. It is always better to get a written or formal acknowledgment of the same. This is a precautionary measure taken to avoid any unnecessary billing or legal misunderstanding.

Make the Switch
As a rule of thumb, the new car insurance policy coverage should start on the same day the old policy ends. That way, you are legally and financially protected throughout the duration of the change.

With the help of these well-defined steps, you can successfully switch your car insurance policy to a new insurer!