Switching Car Insurance Providers vs. Buying a New Car Insurance Plan: Which Is Better?

Current motor insurance provider not making the cut and you are wondering whether to purchase a new plan to switch provider? Know which is the better choice, the pros and cons of both the moves and what do the experts suggest.

People have several reasons for changing their insurance plans and providers. Two of the most common reasons for switching to a new motor insurance policy are—inadequate coverage and high premium cost.
If you are unhappy with your car insurance policy or the provider, then here are some things to keep in mind before making the switch.

Factors to consider before switching your insurance provider

Avoid making hasty decisions when buying a car insurance plan. Take time out to assess your needs and budget constraints before purchasing new car insurance. Moreover, the following points will help you make a clear decision about whether you should switch to a new insurance company or buy a new vehicle insurance policy.
1) Premium amount
Consider changing your car insurance plan if you are not getting your money's worth despite paying a high premium amount. Check the coverage and services of your current car insurance policy. Moreover, compare the features of other insurance plans. After analysing all the features, add-ons, and premiums of various policies, you will know if it is time to switch your insurer or change your motor vehicle policy.

2) Service quality
The overall level of service is an important consideration when choosing between different insurers. If you are not happy with the service quality of your current insurance company, then maybe switching to another insurance company is a good idea.

3) Customer service standards
A competent client management team is well-equipped to resolve all your queries. However, if you are kept waiting on a loop of automated responses, you may want to consider switching to a new insurer.

4) Complex user interface
Having an online presence in today's tech-based times is mandatory for insurance companies. Even so, some insurance providers do not adhere to any guidelines when designing the user interface of the company mobile app or website. Moreover, a complex and confusing user interface can result in unpleasant customer experiences when filing a claim, buying a policy or using a service. If you are facing such problems, then switching your motor insurance policy provider is advisable.

5) Lack of add-on coverage
Not all insurance companies offer add-ons or additional coverage on your motor insurance policy. Among add-ons that insurers provide are roadside assistance, engine protection, and zero depreciation. Surely, you have to pay extra for add-on covers. Now, if you want specific add-on coverage which is not offered with your current car insurance plan, consider switching to a new plan or insurer.

Reasons for switching your insurance company

You must consider changing your insurance company if:
  1. The credibility of your current insurer is low or not satisfactory
  2. You are not getting the full range of services on your existing car insurance plan from your insurance provider
  3. Your insurance company is not offering the desired add-on covers
  4. You are paying more premium than needed
  5. You cannot set the desired IDV value
  6. Things to remember when changing car insurance companies

    1) Cancel your current policy
    When you cancel your current policy to shift to another policy, make sure to claim a refund for the remaining duration.

    2) Apply for No Claim Bonus transfer
    If you do not claim against your motor insurance policy for some years, you accumulate a No Claim Bonus (NCB). In such cases, you must take an NCB certificate from your current insurer and submit it to your new car insurance provider. In doing so, you can enjoy NCB benefits on your new insurance plan with a different insurer.

    3) Analyse what went wrong
    There could be many reasons why you may switch your insurance company. However, it helps to know the exact reasons why you made the switch. In the process, you can choose a better insurer.

    In addition, by knowing the exact reasons for wanting to change your insurance company, you can avoid the hassle of switching insurers often. For example, if you are not happy with the customer service quality of your current insurance provider, then you can opt for a company with good customer service reviews.

    4) Conduct proper research
    Without proper research, you will not find a suitable vehicle insurance policy. So, make sure to invest some time to research and find the best car insurance plan for your needs. Once you shortlist plans compare them for features, premium, and coverage and buy the one you like.

    5) Know whether the new one is good enough
    Knowing your motor insurance requirements is not enough. You must also be sure that your new car insurance policy is the best that you can afford. Insurers with good pre-sales and post-sales reviews are a good bet. Moreover, opt for insurance companies that are not only offering a feature-rich policy but also have a good reputation when it comes to reviews and ratings.

    Wrapping up

    Always look for a company that provides good customer service and sound advice regarding purchasing or renewing car insurance. Additionally, an ideal insurer addresses your queries within a short turnaround time. A well-thought decision will help you get the best insurance policy with the most efficient insurance provider in the market.


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