In India, there’s simply no dearth of car insurance companies. Thanks to the existence of so many players, you might be tempted to switch your insurance provider at the time of renewal. However, is that a good idea? Or, is it better to stick to one car insurance company?
To help you make a decision on whether to continue your relationship with your insurer or look for other options, we’ve come up with a list of the various advantages and disadvantages that you get to experience by staying with your current car insurance company. Let’s begin with the benefits first.
Benefits of Sticking With a Car Insurance Company
Continuing your existing relationship with your current insurance provider allows you to experience a host of different advantages. Here’s a quick overview of a few of them.
1. You get the benefit of lower deductibles
By staying with your current provider, you get to establish trust and a good relationship. Many insurers often value loyalty and might even be willing to offer additional benefits in the form of a reduction in the voluntary deductible amount.
The deductible is the amount that you would have to bear before the insurance benefits kick in. And so, the lower the deductible, the better it is for you since you won’t have to pay a high amount out of your pocket in the case of a claim. The reduction in the deductible amount will only be issued to you if you stick with your insurer.
2. The insurer might overlook accidents
A few car insurance companies may even overlook an accident that you were involved in as a goodwill gesture; especially if you’ve had a long continuous relationship and have a strong track record of driving cautiously.
Overlooking an accident means that the incident wouldn’t be recorded in the insurer’s database, which effectively means that there won’t be a significant increase in your car insurance premium. This is a major benefit that you might get to enjoy if you choose to stick with your current provider.
3. You become fully aware of the various fees and charges
Since you’ve already had a long-standing relationship with your insurance provider, chances are that you’re well-versed with the different fees and charges levied by them. Also, by renewing your policy year after year with the same insurer, you would come to know of the various terms and conditions of the plan as well. The same cannot be said if you choose to switch providers. You might even become a victim of hidden costs and charges.
4. You don’t have to deal with additional costs
Car insurance companies might levy additional costs and fees such as policy fees and administrative fees for new policyholders. This can end up increasing your overall cost of insurance by quite a bit.
However, if you choose to continue with your current insurer, you won’t have to pay any such additional costs since you would have already paid them the first time. This is one of the many instances where you get to actually save money by not switching providers.
5. The renewal process would be very simple
Renewing your car insurance with the same insurer is usually very simple. All that you would need to do is visit your insurer’s website, enter your existing policy number, and pay the premium. The entire process shouldn’t take more than a few minutes.
You won’t have to submit any application or extra documentation, which will most likely be the case in the event of a switch to a new insurance provider. That’s not all. When you make the switch to a new provider, you might even be required to undergo a vehicular inspection as well, which can end up causing undue delay.
Drawbacks of Sticking With a Car Insurance Company
Now that you’ve seen the benefits that you stand to enjoy by continuing with your current insurer, let’s take a look at the other side of the coin as well. Here are a few major disadvantages of persisting with a car insurance company.
1. You might not be getting the best deal
The premium that you pay towards your insurance plan might not be the lowest or the most affordable option available in the market. There might be a few car insurance companies that offer the same benefits as your existing plan with a lower premium quote. By persisting with your current insurer, you might be missing out on great deals on car insurance premiums.
2. You might not receive the comprehensive level of protection that you seek
The insurance policy that you hold may not be sufficient to cover all your needs. For instance, you might be missing out on certain features, perks, or add-ons. Choosing to continue with your current provider despite such situations, puts you at a severe disadvantage. During times like these, it is advisable to review your insurance and switch to a provider that offers the level of protection that you expect.
3. You might be missing out on many services
There may be a few car insurance companies in the market that offer a wider gamut of services such as a larger network of garages, more add-on covers, or even a faster claim resolution process compared to your existing insurer. Under such situations, it doesn’t make much sense to stick with your insurance company especially when you might be better off switching instead.
Going through the different merits and demerits of sticking to a car insurance company should have given you the information you need to make an informed decision. If you’re planning on purchasing a vehicle from any one of the top 10 car companies in India, remember to explore all the insurance options in front of you before taking the plunge. This way, you can make sure that you choose the best plan for your vehicle.