Switching Your Car Insurance? This Is What You Need To Keep In Mind
As per the Motor Insurance Act, 1988, it is mandatory for all vehicles on the road to have a motor insurance. For most people, the topic of insurance brims when they have to get down to renewing their insurance. If you’re one that owns a used or a second hand car, most car dealers insist that you should not change the name on the registration of your car, as it would affect your resale value. In all honesty, your insurance and the registered title of your car have to match if you wish to make a claim, and most claims are rejected solely due to this reason. When it comes to car insurance in particular, experts believe that it’s best for car owners to shift their insurer every three to four years, as it gives you an insight on the best deals and you could actually save on your insurance. If you’re looking for a shift, this is what you need to have a look at.
Shop Around For Insurers
The best time to shop around would be either when you buy a new car, your insurance is up for renewal or if you move. As already mentioned, insurance experts believe that car owners should look for an insurance change every three to four years as they would be aware of the best deals in the market and eventually might land an insurance much cheaper than your current one – and one with a lot more perks.
Inform Your Current Insurer Of What You Have In Mind
This is an age old trick and believe me, it works. If you’re adamant on shifting your insurer, it’s best you inform them well in advance to avoid any confusion or penalties. Once you have informed them, it’s highly likely that they might do their best to keep you on board. You might have a few good deals coming your way once you have spilled the beans.
Ensure That There Are No Penalties
Insurers insist that you always inform them in advance if you’re making a shift. These days, your no-claim bonus can be shifted between insurers making it even more necessary that you inform them well in advance. In addition, if you decide to shift insurers in between the policy term, they might just slap a penalty on you. To avoid such situations, inform your insurer in advance.
Do A Thorough Background Check On Your New Insurer
When shifting insurers or applying for a new car insurance, it is imperative that you make a thorough background check on the insurer you wish to avail an insurance from. Firstly, check their claim settlement ratio and go through their reasons for rejecting a claim. Next, do not choose an insurer just because they are giving the cheapest deal out there, choose one that is reliable and has sound customer relationship. Keep this in mind as you would have to work with them if you have to make a claim. Lastly, go through the list of network garages they are tied up with and if they have the option of cashless repairs. Knowing the closest network garage is going to help you quite a bit when you file for insurance to get your car fixed and back in shape.
Ensure That Your Covered At All Times
When shifting between policies, make sure that there is no gap in coverage between your last insurer and your next one. If you do meet with an accident during this period, then you will have to bear the cost of the damages. Make sure that you have a new policy in hand before cancelling the old one. Ensure that your covered throughout, make no compromise or take no chances when it comes to this.
You Should Cancel Your Old Policy Immediately
When you have shifted insurers, ensure that your old insurance policy has been closed. This will save you from the hassle of getting notifications to renew your policy and having the old insurer on your back. In addition, non-payment of insurance policies will affect your credit score, and this is the last thing you wish to happen. If you have finalised on a new policy with another insurer, close the old policy immediately.
Build A Good Rapport With Your New Insurer
Filing for a claim less than 90 days from the commencement of your policy might result in you getting a claim rejection. Make sure that you on your best behavior with your new insurer and build a rapport with the insurer to ensure there are no problems if and when you have to file a claim.
When looking for a new insurer, always ensure that the insurer you choose has a good reputation and an optimum claim settlement ratio. Like already mentioned, don’t side with the insurer offering the cheapest insurance, make sure that the benefits of new insurer are all-round. Lastly, having an insurance is absolutely necessary as it could save you from your bank account being drained if you do meet with an accident. An insurance covers the cost of the damages met by the third-party as well as your damages (if you have a comprehensive motor insurance). Having a comprehensive insurance as apart from a third-party insurance will give you complete coverage – cover for damages caused by an accident, fire, floods, natural calamities and so on. If you live in a risk prone area, owning a comprehensive insurance is imperative.