In India, it is mandatory for every motorist to have at least a basic car insurance policy. Apart from the legal compliance, having this type of coverage can truly protect your finances if your car suffers damages in a mishap or due to other calamities. Car insurance needs to be renewed each year. During renewal, vehicle owners often wonder if they need to change insurance providers or whether they should stick with their current plan. This decision may vary from person to person depending on each one’s needs.
In this article, we will list out the pros and cons of not changing your vehicle insurance provider so that you can make an informed decision.
Pros of not changing your vehicle insurance provider
If you stick with the tried and tested insurance provider whom you have known so well all along, you may enjoy the following benefits:
- Loyalty discounts as per insurance provider’s terms.
- Bundle discounts for maintaining other types of insurance products under one roof with the same provider.
- Ease of communication with familiar names and faces at the insurance company.
- In-depth knowledge of the same car insurance policy that you have had for so many years.
- Comfort of automatic policy renewals that ensure your coverage is always active.
Cons of not changing your vehicle insurance provider
We often hear people advise us to look around and explore other options of car insurance plans before renewing an existing policy. This is because there can be certain downsides to simply continuing with your existing coverage.
These downsides may include:
- Missing out on better coverage options offered by competitor companies.
- Skipping on the opportunity to benefit from better customer service, especially if you are dissatisfied with your current provider.
- Paying more for the same insurance policy simply due to the comfort of continuing it each year.
- Losing out on coverage if your insurance provider has revised their policy details.
Do bear in mind that certain benefits – such as the no-claim bonus (NCB) – will be enjoyed even if you choose to change providers. Moreover, switching between insurance companies is free of cost. Should you choose to jump over to another plan before your current policy expires, you may get a reimbursement of the premium on your old plan.
It is advisable to keep your current insurance provider informed well in advance should you decide to switch policies and go elsewhere. Doing this is often considered to be good practice as your current provider gets an opportunity to inquire into what has led you to this decision. They may also try to retain your loyalty by offering you certain discounts or benefits in addition to what you already get.
Do keep these points in mind when deciding whether to switch between car insurance companies. Make sure you research well and reach a decision that truly works for you. We hope this article has been helpful. Drive safe and take care.