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Do you have yourmotor insurance policy on autopilot – sticking to your first insurance provider and paying your annual premium through an ECS? It might seem like a very convenient way to go about things, but did you know, switching your insurance provider every now and then can help you unlock significant savings. In fact, some experts put the potential cost benefits in the 5 to 50 percent mark.
There could also be a number of reasons to make the move, besides the monetary advantage. Maybe you’ve moved to a new address, one that’s far-off from your current service provider’s nearest branch. Maybe you’ve found the post-purchase service of your current insurer below par, or your insurance needs have changed. Regardless of the reasons, making the switch can be a very advantageous decision and this article will highlight 5 steps to ensure the move is simple and cost-effective.
1. Compare your options.
It all begins with getting a good measure of all your options. Look forcar insurance providers that offer the same or improved cover at a better premium amount. You are bound to find a couple of alternatives that match your needs, whilst also making more financial sense. Check the inclusions and exclusions of these shortlisted options to ensure you are not missing any protection you have with your current plan.
2. Consult your current insurer.
You’ll need to approach your current insurance provider before making the switch. They might offer to match the quotes of other insurers just to retain you as a customer. You’ll also need to enquire about the switching charges and ask them to issue you an NCB certificate, if applicable.
3. Research the new insurance provider.
Check the number of network garages they have, read through what other customers have to say about their service or speak to friends who are their customers. Go online and read through the IRDAI’s annual report for the said insurance provider’s Claim Settlement Ratio. You could even check out their insolvency ratio to be extra safe.
- Wait for the right time.
You need to ensure there’s no coverage gap when you jump motorinsurance providers. Ideally, your new plan should start providing cover before or on the same day your existing plan comes to an end. Not only does a gap expose you to the financial costs of an accident, but it could result in higher premiums down the line.
5. Cancel & make the switch.
Once you’ve crossed your T’s and dotted your I’s, you can go ahead and sign with the new insurance provider. Once you’ve done so, you will have to cancel your existing plan. It’s best you get proof of the same in case your current lender continues to bill you. Then all that’s left to do is make a copy of the policy and place it in your car!
These steps should ensure you have a smooth and issue-free transition from one car insurance company to another. We hope this article will help you, good luck and all the best!
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