When we decide to buy a car for ourselves, we conduct a ton of research about the different models available, our budget, etc. Then, after looking through the most suitable options for ourselves, we finally pick the car that matches all of our checklists. While purchasing a suitable car can help us ease our days and protect ourselves from heavy traffic. But, first, we must get a car insurance plan to protect the vehicle from unprecedented dangers.
Car insurance plans are insurance products that are designed to help you protect your four-wheelers from incidents like theft, accidental damages, etc. In addition, with a car insurance plan, you will get financial support for dealing with the damage repair costs. Therefore, they are optimal ways to ensure you get to fix any damages to your car.
It is a legal compulsion to purchase a car insurance policy with the vehicle when you purchase a car. However, if you’ve purchased a car insurance plan with an insurer and it doesn’t meet your requirements, you can move to a new insurer with the help of car insurance portability.
What is Car Insurance Portability in Car Insurance?
Like a mobile number is moved, portability allows you to move to a different insurance provider. You have to select an insurer and insurer and port the insurance plan to a new insurer. When you switch to a new insurer, your benefits like the NCB (No Claim Bonus) will be transferred to the renewed car insurance plan. If you move to a new insurer at the time of renewal, you will not be charged anything.
However, if you switch to a new insurer mid policy, your insurer will reimburse the premium you have paid based on the amount you have paid. Therefore, you can move to a new insurer before the expiry date, as you will be able to retain your accumulated NCB, and your car will not have to undergo an inspection. Here are certain instances where you may wish to port your insurance for four-wheeler:
- If you wish to purchase the same coverage as your existing plan but at a better price.
- If you’re getting better coverage at an affordable cost.
- If your new insurer will offer you a better claim settlement experience.
- If your new insurer offers better services as compared to your current insurer.
However, if you’re planning to port your car insurance plan to a new insurer, you must remember a few things.
Things to Consider While Porting Your Car Insurance
Here are certain things you must consider when porting your car insurance policy:
- Identify your plan’s expiry date: As mentioned above, it is important to renew the car insurance policy before its expiry date. Your accumulated NCB is valid for 90 days from the expiry date. If you do not carry out the renewal of your car insurance plan before the plan lapses, you will lose the NCB benefit. In addition, if your car insurance stays expired for a long tenure, your car will undergo an inspection.
- Compare different policies online: It would be optimal to compare the different comprehensive car insurance plans. With online comparisons of the car insurance plans available for you, you get to explore the different options available for you and select the one that matches your requirements. In addition, insurers like Tata AIG offer car insurance calculators to help customers calculate car insurance premiums. You can use the calculator to compare the different insurance plans available for you and make an informed decision.
- Check the IDV: When moving to a new car insurance plan, you must check your vehicle’s IDV amount. You must calculate the amount before purchasing the car insurance plan. Picking the correct IDV will ensure you get the appropriate amount of coverage for dealing with accidental damages or if your car is stolen.
- Do not lose the NCB: The NCB is your insurer’s way of rewarding you for not filing any claims. When you move to a new insurer, you must ensure that you transfer the NCB benefit to the new car insurance plan as well.
- Thorough research on the insurer: There are several insurance companies in the market. Before selecting one insurance company for your car insurance, you must learn about the features they offer, the claim settlement ratio, customer reviews, etc. Learning about these features before purchasing the plan will help you make sure you are purchasing the plan from a suitable insurer.
- Add-ons: Add-ons offer additional insurance coverage for specific situations. You must keep track of the add-ons you need and the add-ons offered by your preferred insurer. Add-ons help you improve your policy’s coverage. Therefore, you must opt for the insurer that offers you the add-ons you need.
With car insurance portability, you can move to a new insurer and upgrade your insurance coverage based on your necessities. Car insurance portability is an excellent feature if you’ve found a plan that offers better coverage than your existing plan. With the ability to port your insurance plan, you can get the coverage you need without any hassles. However, it would help to consider a few factors like your plan’s expiry date, IDV, add-ons, NCB, etc., while porting your insurance plan to a new insurer.