Can I Change Car Insurance Before Renewal Date?

Insurance plans are valid only for a specified period. Its validity can be a few months, a year or even a few years. However, they must be renewed on time to keep its coverage active. Failure to renew can lead to an expiry of the plan ending its coverage till renewed next. Be it health insurance, motor insurance or any other type, it is true for all types of insurance plans.

When you purchase a four wheeler insurance, most plans are generally valid for a period of one year. However, after such a period, the regulatory body, the Insurance Regulatory and Development Authority of India (IRDAI) allows policyholders the freedom to change their insurance company without losing any accumulated benefits. A change of insurance company is generally required in case the services are inadequate or better policies are available at a competitive rate.

When can you change your four-wheeler insurance plan?

Changing your policy is possible at renewal as well as before. However, it is generally advised to wait till its renewal. At this time, your original policy coverage is about to end when you can opt for car insurance renewal with a different insurance company. *

Nevertheless, in case of an unsatisfactory claim experience, many policyholders may want to change their insurance company on an immediate basis. At such time, it is also possible to switch the insurance company mid-tenure. When changing the insurer before the policy renewal date, you need to remember to cancel the existing plan and transfer any accumulated benefits to the new insurance company. Since this can be a tedious process, it is not recommended by insurance experts. *

What are the things to consider when switching your insurance provider?

When switching your insurer, make sure to avoid any haste. While changing your existing plan may be on top of your mind, make sure to thoroughly understand the new insurance policy and only then purchase. If ignored, it can lead to another case of bad claim experience where your expectations from the insurance policy aren’t met fully.

1. Premiums

If you are paying steep premiums, switching your insurance company can be a smart alternative. However, make sure to look at the new insurance policy’s coverage and only then take the plunge. *

2. Quality of service

The overall quality of service is a good measure to assume whether the new insurance policy meets your requirement. Forums, testimonials, and reviews are some ways on how you can learn about your new insurance company. *

3. User interface

In case you are buying a policy online, the user interface is an essential consideration. Here, you can lodge claims, as well as alter the policy coverage based on your requirement. Skimming in advance to ensure that the new interface isn’t confusing is an effective way to change to the right insurance plan for you. *

To ensure you have the right insurance company when switching your provider, start with analysing your requirements of coverage. This needs to be followed by research and comparison of the different plans that are available. A car insurance calculatoris a smart way to facilitate comparison of the several available alternatives. Next, shortlist a few policies that seem right for you. Checking on critical insurance company ratios like the claim settlement ratio can be helpful in gauging the reputation of the insurer. *

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