Portability of Car Insurance

by Ronel Forbes

November 18, 2021

Your car insurance is critical in protecting you financially from unintentional damages or losses. However, you may find that the current policy does not fit your needs over time. So, what’s the best way to fix the flaws?

Change your auto insurance coverage to a new insurer that provides a better experience and services. Car insurance portability refers to the ability to change insurers. Let’s take a look at the topic of portability in vehicle insurance in this post.

What does it mean to be able to transfer your car insurance?

This notion, similar to cell number portability, allows you to move insurance providers. You must select an insurer and migrate your policy to the new provider.

Benefits such as No Claim Bonus (NCB), a discount you obtain for not filing a vehicle insurance claim during the policy term, are transferred to the renewed plan when you switch to a new insurer.

Car insurance portability is required

Here are some of the reasons why you might need to change insurance companies.

Could get the same coverage at a lower cost
To improve coverage
To benefit from a more favorable claim settlement experience.
To gain better access to services such as simple repairs.

When is the ideal time to switch auto insurance companies?

Your auto insurance plan can be ported at any time. However, it is recommended that you switch to a different insurer when your motor car insurance is up for renewal.

You can keep the NCB if you renew your policy before it expires, and you won’t have to examine your automobile. As a result, renew your car insurance online before the expiration date, supply your existing policy information, and port your car insurance to a new insurer.

What should you bear in mind when transferring vehicle insurance?

When looking for a new and better car insurance plan for your vehicle, it is critical that you consider the following aspects to ensure that your vehicle is properly insured:

Being aware of the plan’s expiration date

As previously stated, it is critical to renew your auto insurance policy before it expires. NCB is valid for 90 days after the plan’s expiration date.

You will lose the NCB benefit if you do not renew your coverage within the specified time frame. If your policy expires for a longer period of time, the insurer will need to inspect your vehicle in order to renew it.

Plan comparisons are available online

It’s possible that your current plan hasn’t given you the best results. As a result, it’s a good idea to do some research and choose the best plan and insurance company for your vehicle.

The online platform allows you to compare vehicle insurance plans and insurers to find the best policy for you.

Don’t lose the NCB

Your insurance company will give you a discount in the form of NCB if you do not file any claims during the policy period. If you don’t file any claims for five years in a row, you can get a 50% discount.

When moving to a new insurer, make sure the NCB benefit is transferred to the new plan.

Examine the Declared Insured Value (IDV)

Check your vehicle’s IDV when switching to a new insurance plan (the approximate market value). To acquire the correct automobile value in the event of theft or a total loss, make sure you choose the approximate IDV.

Documentation is required

There is various documentation from the prior insurer that you should have ready when switching insurance companies. A copy of the car registration, a copy of the previous policy, and identifying documents such as Aadhar and Pan Card would be required by the new insurance firm.

In order to compute your No Claim Bonus, the firm will need to know about your claims history (NCB).

Benefits of car insurance portability

Here are some of the advantages of switching insurance companies:

Allows you to switch to a better insurance company.
You can move the NCB to the new plan if you want to.
To supplement your basic plan, you can get superior auto insurance add-on coverage.
You will benefit from improved services like hassle-free claim settlement, simple repairs, and so on.

To put it more simply

Car insurance should not only give financial protection against unforeseen damages or losses, but it should also be a painless process. While your existing insurance plan may provide a higher insured amount, you may be dissatisfied with the insurer’s services.

This is when switching to a different insurance company for a better experience is necessary.