Car insurance is one of those unglamorous mandatory expenses that anyone driving a car has to incur annually. Nearly all vehicular insurance policies are sold at the same time as the purchase of the car, and very few policyholders ever try to change their insurance providers. But if you are staring at a policy renewal anytime soon, it is a good practice to research what alternatives may have.

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There may be other reasons as to why you may be considering changing your vehicular insurance provider as well. If you find an alternative insurance policy that offers you better coverage and benefits, then that might be one of the biggest reasons to consider a change. A change in location, which subsequently changes premium rates, may also be a reason behind changing your insurance provider. Dissatisfaction with your current provider due to limited in-network garages and poor customer service may also be reasons to change your insurance provider.

Pros of changing your insurance provider

When you change your insurance provider, you might be able to get a new policy that offers more benefits and coverage. You may also find a policy comparable to your current one but at a cheaper premium price.

Since there is no cancellation charge, you’re not paying anything out of pocket when you’re changing your provider. If you cancel your insurance in between the term, most providers return the premium you paid on a pro-rata basis as well. But you have to inform your current provider about 30 days in advance about cancelling.

Cons of changing your insurance provider

You might lose out on some insurance loyalty discounts if you change your providers. These discounts are offered by providers to customers who renew their policies each year, though the fiscal benefits of the discount are varied.

You also stand to lose out on any bundled discounts or policies that your previous insurance provider had been offering you on your vehicular insurance.

Any insurance gap between your previous and new policy can attract hefty penalties and can put you in financial jeopardy.

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(Edited by : Sudarsanan Mani)

First Published:Jul 7, 2022 4:39 PM IST