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Rediff.com  » Getahead » How to switch car insurance plan

How to switch car insurance plan

By Naval Goel
December 30, 2015 10:00 IST
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Switching car insurance can save 5 to 50 per cent over your existing car insurance plan.

It is great that you have car insurance, but paying the premium to the same insurer year-after-year is a pricey mistake. It is better to switch car insurance plans every 3 to 4 years. It will assist you in saving a big amount. If you think that switching car insurance is not an easy thing then let me clarify that it is not at all difficult and can provide many benefits to you.

Switching car insurance can save 5 to 50 per cent over your existing car insurance plan. However, you need to switch smartly for getting maximum benefits. Here are some tips that will assist you in switching smartly.

Compare

It’s always better to check and compare car insurance plans from different companies before choosing. Researching online is the best way of short listing as there are many insurance web aggregators which provide desired results. You can find many companies online which provide a cover of 6 months to 1 year. Comparing options online can also get you instant quotes which will help you in further deciding which insurance plan to choose from.

Calculate need of coverage

There are many things which affect insurance coverage like marriage, shifting of home or office, conceiving a child among others, but there are many solutions available in the market which can solve your problem. Do your research carefully and shortlist a plan which is affordable and fulfills your needs. For that, you need to evaluate the features and coverage that are available in each policy.

Talk to your current insurer

You should connect with your current insurer and ask him about the process of switching car insurance. Many insurance companies provide great discounts as they want to maintain the relationship with you for a longer time. So you should contact your insurer to get great discount offers.

Check your new insurer thoroughly

It is advisable that you should check the company, its policies, background, experience, financial status and performance among others before opting for a new insurer. You can visit their website, twitter page, facebook page etc. for checking their credibility and performance. This will provide you an idea about the company and its policies which can assist you in getting a trustworthy policy.

Additional benefits

You should check additional benefits and convenience, too. Make sure that the company which you select provides 24/7 customer service. This is because you don’t know when you will need your insurer’s help. Many companies do provide 24/7 online support to help you in every possible manner. You should also ask about the payment options available with the insurance companies.

Switch your current insurance plan

After selecting your new insurance company, you should switch. It is advisable to start new car insurance plan on the same day when the current insurance ends. This would assist you in saving a big amount or premium which you will pay. It is better to cancel the previous plan instead of stopping the payment. You should inform your previous insurance company that you are switching your car insurance plan and it’s better to collect the legal documents for the same from them. This will protect you from any legality in the future.

Identity card

You may require your previous insurance identity card and other relevant documents in the future, so always keep a soft copy of them before initiating a new insurance plan.

So, the next time you have to renew your car insurance policy, research, compare and then make a switch to save money.

Photograph: Pictures of Money/Creative Commons

Naval Goel is CEO and Founder, PolicyX

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Naval Goel