Motor insurance is essential for all car owners. Finding the right insurance company and the right policy can be difficult but is it always good to stay with the same insurance provider? Let us understand the advantages and disadvantages of sticking to one insurance provider for a while.
● No-Claim Bonus – If one has an Own Damage Car Insurance Policy and they do not make any claims during the policy period they would get discounts at the time of renewal. If one stays with the same insurance company and does not make any claims for five consecutive years, they can avail of a discount of up to 50% on the premium. This is possible only if they stay with the same insurance company.
● Hidden Costs Removed – While buying a new policy or shifting a policy there are several costs such as fresh policy fees, renewal fees, cancellation fees, adjustment fees, and so on, that are not mentioned explicitly. These hidden costs can make shifting or buying a policy quite expensive, which can be avoided while staying with the same insurance company.
● Trusted Relationship – A long-time insurer will be aware of your driving record and will understand if there is a situation like an accident. They will be familiar with you and a good relationship will make both parties happy and satisfied.
● Decrease in Deductibles – Deductibles are an amount that all policyholders must pay. If one stays with the same insurance provider, they may be offered a discount on their deductibles and sometimes it might be completely waived off.
● Miss Exciting Discounts – If might get too comfortable while sticking with the same insurance provider for long. If one is open to looking at other insurance companies, they can often find exciting offers with the same or even better coverage.
● Paying More – If one gets comfortable with the same policy, they may not revise the policy during the time of renewal. Policies get modified and it is important to always check your policy. It is rather easy to just renew a policy and carry on with life, but one might save a lot of money if one went through their policy during renewal.
● No Sufficient Coverage – Check if your policy covers all your needs. Staying with the same insurance provider can make one not realize what they are missing out on. For instance, if you have bought a second car, the policyholder would need extra cover. It is always wise to compare with other insurance providers to see if they offer better coverage for the same sum.
● Better Service Benefits – You could find better service benefits in other insurance companies. For instance, some insurance companies provide dual coverage for Third Party risks and Own Damage risks, live video streaming for an instant claim, more than 7000 cashless garages, and so on. If one stays with the same insurance company, they could be missing out on a lot of good service benefits that other companies provide.
● Wide Range of Add-ons – Different insurance companies have various add-on covers such as cover for road tax and registration charges, cover for personal belongings, and various covers for private vehicles. One can avail access to better add-on covers if they shift their insurance company.
Shifting insurance companies is completely a personal choice. If one feels they might get better benefits with another insurance provider, one should analyse their situation and do it while on the other hand, if they are happy with the insurance provider, there is no need to change. Either way, always compare the pros and cons and decide. Click here to know more!