Is It Wise to Continue with the Same Car Insurance Company?
Motor insurance is necessary to relieve a chunk of the financial burden caused to your vehicle by damages due to unfortunate events like accidents, theft, disasters etc. However, while purchasing a car insurance policy, there is quite a bit of research that goes into selecting a good car insurance company. When you want to get car insurance online, you may have several options available. But at some point in time, your car insurance requirements may change. This is when you ask yourself whether switching over to a new provider would be a feasible idea.
Why should you continue with the same car insurance company?
If you have purchased your car insurance policy from a reputed car insurance company, it would be a good idea to continue and renew your policy with the same provider. A good car insurance company is one that offers easy renewal, quick claim settlement, high claim settlement ratio, prompt after-sales service and an overall good experience for the customer.
If you are associated with such an insurance company, it is advisable to continue with them for the following reasons:
- Transparency: Even though you may have selected your car insurance provider after a lot of research, a long-term term association with the same company ensures a better relationship with them based on trust and goodwill. Not only will you be more familiar with their different policies but can also understand their purchase, renewal and claims processes better.
- Loyalty benefits: As a long-time customer of a car insurance company, you can have a good chance of earning certain discounts on your car insurance renewal or while purchasing a fresh policy later on. These loyalty benefits not only help your car insurance policy but can also help foster mutual understanding between your insurance provider and you.
- Better knowledge: Being with the same car insurance company for the long term helps you reach out more easily to the teams and ask relevant questions about their processes. This, in turn, helps the insurance provider’s team answer your queries more accurately but also helps you know more about their products and services. Moreover, the longer you are associated with the same company, the easier it is for them to help you choose the right car insurance for your requirements.
- Easy insurance renewal: When it comes to renewing the policy, the process becomes more convenient if you are accustomed to the quality services of your service provider. If you are a car insurance policyholder with Tata AIG, then you will know how time-efficient and hassle-free the Tata AIG car insurance renewal is.
Why should you not buy insurance from the same car insurance company?
The purchase and renewal of car insurance from the same company can be a bad idea if you have an insurance provider whose services do not live up to your expectations.
This is when the following disadvantages can be observed:
- Fewer options: If you did purchase a car insurance policy earlier without exploring enough options, your existing policy may not be able to support your requirements. At such times, staying with a car insurance company that provides fewer options in car insurance policies will not help you in any way.
- Lower IDV: Car insurance companies that are not well-renowned in the market may opt for certain practices to offer you lower premiums. While an affordable premium is desirable, it should not be at the cost of a lower IDV (Insured Declared Value) as that will compromise the car insurance coverage.
- Limited add-ons: Not all car insurance companies offer the same add-on covers and at some point in time, you may feel the need to include various add-ons to your car insurance policy. In such a situation, if you choose to continue with the same company that does not offer the add-ons you really need, you simply miss out on the chance to enhance your coverage with better add-ons.
- Low discounts: Lesser-known insurance companies in the market may sell their policies online but cannot always ensure good discounts on their insurance. They may also have hidden costs that could overshadow the discounts they provide on their policies. While this is something the company may not be able to help, it is of little benefit for a policyholder to avail of these discounts.
Factors to consider while choosing a new insurance provider
Car insurance companies in India offer various policies with different features. You should carry out thorough research to compare car insurance policies so that you can find a plan that meets your requirements.
If you have decided to change your insurance provider and renew your car insurance with a top car insurance company, below are some of the important points that you can consider:
- Claim Settlement Ratio: The claim settlement ratio is a clear indicator of whether or not a car insurance company can settle your claims successfully and on time. This percentage is derived from the number of claims that the company has settled in a particular year as against the number of claims they have received during the same year.
- Quality Customer Service: A knowledgeable and helpful customer service team is the backbone of any company and it is no different for a car insurance company. A provider whose customer care team is easily reachable and can guide and aid potential as well existing policy buyers effectively is a factor you should consider while choosing a good insurance company.
- Good Discounts: When you buy a car insurance policy online from a reputed company, there are several discounts that the company offers to draw more customers towards the online mode of purchase. By effectively optimising their costs, good car insurance companies in India can offer better discounts to their policy buyers.
- Convenient processes: Any top car insurance company will always ensure that their customers can easily find their solutions on the company’s website, be it regarding the purchase, renewal or claims processes. Hence, these companies design their website in a more user-friendly manner and aim to offer more convenience to their customers.
In search of several incentives and discounts on your car insurance policy, it is advisable to not choose just any car insurance provider without adequate research. As mentioned above, there is more to a good car insurance company than lower car insurance premiums.