According to the Motor Vehicles Act, 1988, whether you are buying a new car or a used car, it is mandatory to own a third party liability cover. Read what is third party insurance to know more. To abide by the law, a majority of people buy car insurance for a longer period. However, making premium payments to the same insurer for a long-term duration can end up being an expensive mistake. Every car owner must switch his car policy in every 2-3 years to save money.
Switching insurance is a smarter solution to avoid wastage of money on hefty premiums. However, certain policyholders opt for policy switches without understanding the basics. Go through the top seven steps mentioned below to switch your insurance:
Steps to switch your car insurance:
1. Get quotes or compare
The coverage offered differs from company to company. While specific co
mpanies offer a cover for over 6 months, the rest might cover you for a year. Hence, a policyholder must compare options and get free quotes.
2. Evaluate your coverage needs
The dynamic life stages largely impact the coverage needs of every policyholder. For instance, if you plan on having a kid, look for coverage, which covers your spouse and your kids. Therefore, select an ideal coverage after mapping the needs of your family members.
3. Confirm the switching penalties from the old insurer
Since a majority of insurance companies wish to keep their business for the long run, they might lure an individual with discounts and offers. Therefore, check with your current insurance provider on the available bonuses or switching penalties.
4. Run a background check on the new insurer
Investigating the performance of the new insurer plays a significant role before switching the car insurance policy. Therefore, go through the company website, their expertise and interest areas, and customer testimonials.
5. Consider the extra benefits
Reputable companies provide policyholders with additional benefits like riders. If the insurance companies offer riders, then opt for relevant ones based on your needs. However, see to it that you don’t incorporate excessive riders since it will only add up to the cost of your base policy.
6. Cancel your previous car policy
Once you’ve followed the steps mentioned above, inform your old insurer about the cancellation of the car insurance policy. After the cancellation, make a switch and start your policy immediately. In case the policy lapses, a policyholder is liable to pay high coverage rates in the future.
7. Acquire your identity cards
When the new policy is active, the policyholder will receive an identity card. On receiving the ID card, he/she must swap the new card with the old one. Moreover, having a soft copy of the ID card and other relevant documents comes in handy during emergencies.
To sum up, opt for those insurance companies, which provide car policy online. A policyholder can make transactions online as well as renew insurance online. Besides, utilize the car insurance calculator to get an estimated premium amount.
With these simple steps, one can avail an ideal car insurance policy with ease. Bajaj Allianz car insurance available on Finserv MARKETS is the trusted choice for purchasing insurance products since it is available at a minimal cost along with cash-free servicing.
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!