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Reasons to Change Your Car Insurance Company - A Complete Guide

By Juhi Walia
27 September 2022, 1:03 PM

A vehicular insurance plan is one of the most significant expenses associated with owning a four-wheeler. Most buyers go with the policy suggested by their car dealers as they find it challenging to choose from the options. Often included in the on-road price of most new vehicles, consumers can't or often don't want to search for alternatives.

However, shopping for various car insurance policies is an easy process that helps ensure you get adequate coverage and don't pay more than you should. 

If you are unhappy with your present car insurance policy, you can consider changing it to something more valuable and affordable. This is all the more possible considering the innumerable new players in the auto insurance market and the rise of comparison marketplaces like PayTM Insurance in recent years.

This post discusses the ideal time to consider changing your vehicular insurance to get the most value-for-money plan with a hassle-free transition from your old one.

When Should You Change Your Vehicular Insurance?

While renewing your existing four-wheeler insurance policy, it is sometimes worth looking at other available plans and comparing the options to find a better deal to ensure you do not overpay.

Keep an eye on the market and shop around for a plan that offers the best coverage at the lowest price. This isn't always feasible, but numerous services and marketplaces cater to identifying value for customers, making it easy to keep an eye out for deals and opportunities when they arise.

Here are some situations when you should consider making a switch for your car insurance.

Increasing Premium

Buying vehicular insurance coverage is easy. However, people often do not know how car insurance companies calculate premium amounts.

They generally consider factors like:

  • Car model and make
  • Driver's age
  • Driving skills etc.

A company essentially bases the amount on the risk associated with the vehicle and policyholder.

Insurance companies reevaluate customer profiles and risk factors from time to time and make necessary changes to the premium amount based on the results of their evaluations. Still, this can sometimes be ad-hoc, based entirely on the existing pricing paradigms and moves by competing companies.

This means you may have a higher premium at the policy renewal time than the previous premium. However, switching to a new company can help you save a lot of money. Shop around to find an insurer that offers a similar plan at a lower price.

Inadequate Coverage

One of the reasons to switch to another insurance company is to get better benefits at a price similar to what you are currently paying. Most insurance providers today offer a wide range of benefits in addition to basic coverage in the form of car insurance add-on covers. These extras enhance the strength of your car insurance policy.

If you feel that your insurance company is not offering enough add-on covers to match your expectations, you can change your policy. For example, your current comprehensive car insurance policy may not cover damage to the car engine due to water logging. 

Suppose you live in an area where water logging is common during the rainy season. In that case, you should switch to a provider offering an additional cover for the engine in such circumstances.

Poor Customer Support

Customer support is one of the first things a policyholder finds valuable in an emergency. Suppose you are faced with theft, accident, or any other problem concerning your car. In that case, all you want is for your insurance company to provide the necessary coverage and resolve your issue.

When you feel your provider does not offer adequate support in your hour of need, it is time to think about making a change.

There are so many insurance companies in the market, so it is easy to select one that provides outstanding support. A reputed insurer will never compromise on customer satisfaction.

See that you go with a company that offers 24/7 help through various modes and has a toll-free number. Having an insurance policy that can assist you at any time is always a good idea.

Limited Range of Network Garages

It is desirable to buy an insurance policy from a company with an extensive network of garages where you can get your vehicle repaired using the cashless facility. Suppose your existing insurer does not have a good range of garages. In that case, you can consider switching to another company with a better network of repair stations in your proximity for cashless repairs.

Final Thoughts

These are some cases in which you should consider changing your car insurance policy. If you decide to change your insurance company, ensure that you inform your current provider beforehand and then start exploring the market to compare various companies and plans available.

With the rise of online comparison marketplaces, it is all the more tempting for consumers to make quick changes to their insurance policies in search of a great. However, it is essential to remember that there are more to car insurance than just prices, deals, and offers, all of which need to be considered before making any such decision.

Read more -


1. Can you transfer your car insurance to another company after an accident?

Most people believe switching car insurance is a good idea after an accident. However, doing this may not save you money because your accident history and risk profile also affect your new policy premium.

2. When can I change my vehicular insurance?

Car insurance can be changed at any time, not only during renewal. However, changing the company when the policy expires is more convenient because it saves you from the processes involved in cancellation and refund.

3. When is the right time to change your vehicular insurance?

Some of the most common situations when considering changing your car insurance are – buying a new car, renewing your insurance policy, and adding new security features to your vehicle.

4. Is it necessary to buy an insurance policy for your new car?

In India, the Motor Vehicles Act mandates a third-party insurance policy for every car to drive legally on the roads. Driving a car without basic insurance coverage is an offence and can attract a penalty and punishment.

5. What is a network garage about vehicle insurance?

A network garage is a repair station where you can use the cashless repair facility under your car insurance to get your vehicle fixed without worrying about expenses. The bills are settled directly by the insurance provider.

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