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Advantages and Disadvantages of Staying with a Car Insurance Company

By Juhi Walia
05 August 2022, 10:58 AM

The decision to stay with your insurance company and choose a different car insurance provider should rest on many things. While there are certain obvious advantages that you'll get when you decide to continue with your current insurance provider owing to your long relationship with them, several other important factors might slip by you. It is essential to keep your options open, and always be on the lookout for greener pastures because when it comes to insurance, being oriented towards monetary gain is by no means a bad thing.

It can be overwhelming to understand how to make a proper decision; let us look at some pros and cons of staying with your car insurance company to make the right call.


You Establish a Relationship of Trust with the Insurer

Building a solid rapport with your insurer might be facilitated by sticking with them for a long time. You can rely on your insurer to support you in trying times if you have a solid relationship with it. You will also be familiar with the insurer's contact information, response times for various requests, etc.

Additionally, if you have a long relationship with your car insurance provider, it gets to know your driving habits and history. Consequently, it can understand your insurance needs better.

Read more - Advantages of Buying Car Insurance Online

Lower Deductibles

Some car insurance companies also lower the cost of the required deductibles in addition to offering extra benefits. When a policyholder stays with an insurance company for a long time, the deductible is typically reduced.

At renewal, insurance companies offer the option to raise or lower the optional deductible. Your ability to pay out-of-pocket for a claim will determine if the higher deductible (and resulting lower premium) is worthwhile.

Accident Forgiveness Option

Some car insurance providers give their devoted clients clean driving records, the 'accident forgiveness option'. Your insurance provider may overlook or not count your first accident as "at-fault" under this benefit. Additionally, since your accident won't be recorded in the insurer's files, your auto insurance rate won't increase.

Remember, as you cannot transfer your accident forgiveness to a new insurer, it becomes void when you change insurers.

You Might Actually End up Saving Money

You will have to forego all these benefits in addition to paying a variety of additional hidden fees if you decide to switch insurance companies. 

New car insurance may need additional payments in addition to the premium, such as policy fees and other unanticipated costs that might make switching plans more expensive than you anticipate

Awareness of Hidden Charges and Fees

You become aware of various terms and conditions specified in your plan when you renew your auto insurance several times with the same insurer. It assists you in avoiding unanticipated fees or costs while filing a car insurance claim.

Simple Renewal 

You only need to go to your insurer's website, input your policy number, and pay the premium to renew your car insurance plan with the same insurance provider. However, if you change insurers, you will need to resubmit all your information and maybe go through the vehicle inspection procedure again.

Read more - Tips to Save Money While Renewing Your Car Insurance


High Premiums

Even though the coverage provided by your current auto insurance policy may be enough, you might not be getting the most affordable option. Different car insurance companies may offer the same policy coverage at a lower price as things and pricing change over time. 

You essentially maintain your current advantages when you renew the same car insurance policy that you've had for years.

However, if you look into your options, you might be able to discover a more affordable policy that offers the same (or even greater!) coverage. Additionally, many insurers give new clients exclusive discounts, so take advantage of them!

Insufficient Protection 

You can be trapped with a policy offering you insufficient coverage and paying a higher premium. If your policy's features, perks, inclusions, exclusions, etc. don't meet your needs, you can always transfer to a different auto insurance provider.

This is particularly true if you've recently had a significant life shift, such as purchasing a new vehicle or deciding to pass down an old bike to a youngster. At these times, you might wish to review your insurance and determine whether switching insurers might be advantageous.

A Wider Variety of Available Service Benefits 

In some cases, you can discover that another car insurer provides a wider variety of service benefits than your present insurer. A bigger network of cashless garages, additional add-on cover options, the ability to purchase auto insurance online, and a quicker claim resolution process are a few examples. It makes sense to change your auto insurance provider in such circumstances.

So, What's the Verdict?

The answer is - it depends. This choice is significantly influenced by your financial status and insurance expectations. Insurance professionals advise getting quotes from other insurance companies to assess how competitive your insurance is.

When comparing prices, pay attention to the savings forgoing the costs associated with porting. You must also consider the legitimacy of your new insurance provider's claims processing procedure and customer service. Understanding that devotion occasionally pays off, but may not always be the wisest course of action, is beneficial.

When the customer care representative asks about the renewal, it's very convenient to continue with your current insurance plan. You just need to nod in agreement. There wouldn't be a significant shift in insurance costs, and choosing a new health plan wouldn't require a lengthy process.

What if a cheaper premium was available for the same insurance coverage? Some insurance companies may charge less for the same coverage.

Making the tradeoff between comfort and convenience is totally up to you. It all depends on your current needs and requirements.


If your NCB in car insurance is the reason for your hesitation, you can relax. The fear of losing your NCB should not stop you from considering switching your plan. Your new plan can easily be switched to a different insurance company. If you decide that switching to a different insurance provider is better, you can do so without difficulty.

According to the law, you must purchase third-party car insurance for any car you drive on Indian roads. Purchase third-party car insurance online to fulfill your obligations. If your car is involved in an accident, you'll have to pay for the repair costs, which can be very expensive.


1. Can I transfer my car insurance to another company?

You can change the insurer during the policy term or renewal. You must research while selecting a new insurer and then buy a policy to avoid a bad experience.

2. When should you change your car insurance policy?

Switching car insurance companies after every 2-3 years is something many industry observers suggest, and it is much easier than you might think. You can save from 5 to 50% per year by switching insurers.

3. Can I switch car insurance mid-policy?

Yes, you can switch your car insurance mid-policy. With enough notice, car insurance companies will generally allow you to cancel your existing coverage anytime.

4. Can I cancel my car insurance and get a refund?

If you cancel your policy or your insurance company cancels it, you typically won't get a refund unless you've paid the premium in advance.

5. Does switching car insurance affect credit?

Changing car insurance companies will most likely not affect your credit score.

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