Nowadays, car insurance providers offer so much more than holistic car insurance. We live in an era of smart car insurance where insurance companies offer tailor-fit car insurance plans, co-insurance and portability options to offer need-based services and saving costs.
So, if you are planning for a car insurance renewal but aren’t fully satisfied with your current car insurance provider or for any other reason, car insurance portability can be a good option. So, explore and compare car insurance plans before renewing your motor insurance with your existing insurance provider or switching to a new one.
What Do You Mean by Car Insurance Portability?
A car insurance portability can be defined as an option through which an insured party can switch its insurance provider without losing benefits such as a non-claim bonus. No-claim bonus is a discount you get at the time of renewal for not filing any car insurance claim during your insurance tenure.
There can be several reasons for portability, such as looking for better service, quicker and better claim processing percentage, same coverage at low cost, etc. Therefore, with the car insurance portability feature, you get an option to switch to a new insurance provider if you are not satisfied with your current one.
Reason for Online Car Insurance Portability
Let us look into some primary reasons for car insurance online portability
- Potential savings on premium, i.e., you get the same or better coverage at the same price.
- For better coverage and additional benefits
- For better customer service
- Due to geographical mobility
Best Time to Port Your Car Insurance Policy
You can port your car insurance policy anytime. There is no such best time. But it is best to do it when your policy is up for renewal.
When you port your policy at the time of renewal, i.e., before it expires, you keep your No Claim Bonus intact.
Just renew your car insurance online before the due date, share your previous policy information, and switch to a new insurer without any hassle.
Things to Keep in Mind During Car Insurance Portability
1. Switch Before Your Policy Is Expired.
It is best to proceed with the portability of your car insurance at least 45 days before your policy ends. If your coverage lapses, you ought to lose benefits like the No Claim Bonus.
2. Market Value of Vehicle
Every year, your car loses value, which directly affects how much you pay for insurance. When you port your car insurance provider, your premium might change.
Therefore, it is essential to check your car’s current Insured Declared Value (IDV) before making any changes.
3. Comparing Car Insurance Provider
You need to conduct profound research before choosing an insurance provider and coverage. Always go for reputable names like Tata AIG, which offers comprehensive coverage, extensive benefits and affordable premiums.
4. No Claim Bonus
Insurance companies provide no claim bonus if you haven’t made any claim on your insurance for more than a year. So make sure you take the best advantage of your accumulated NCB. Understand that the NCB is offered on your vehicle and can be transferred to the new plan.
5. Claim settlement ratio
You need to conduct financial research and choose a company that has an excellent claim settlement ratio. This ratio is usually easily available on every insurance provider’s website. This ratio helps to measure the percentage of claims the insurance provider is able to settle with regard to the number of claims registered with the provider in the previous year.
This is an important indicator of its efficiency in settling claims, i.e., the higher the ratio, the better it is for policyholders. Therefore, learn about the insurance provider’s claim settlement history over the last 5 years.
Also, look for various additional benefits such as cashless network garages, different add-ons, etc.
Benefits of Car Insurance Portability
- The best and most important car insurance portability feature is you get a better insurance provider while retaining benefits such as no claim bonus.
- You can grab better deals for the same or similar price with regard to your coverage, addons, network, claim settlement, etc.
- It is hassle-free as you do not have to undergo all the processes which you went through while purchasing a new car insurance policy.
Conclusion
Your car insurance is the guard that protects you financially against any unexpected accidents or losses. So, ensure you get the best insurance experience, like a quick and easy claim settlement process and adequate customer support at the time of need.
Therefore, if your current car insurance provider does not fulfil these checkboxes, maybe it’s time for car insurance portability.
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