Although it seems very safe and secure to go on continuing with certain financial decisions year after year, because it continues to give us a guaranteed modest income, sometimes exploring new options can be beneficial. The need of the individual and the family changes over time as well and banks and financial institutions are also coming up with new and improved schemes for the modern Indian. The same can be said about your car insurance and are some reasons as to why you should not stick to the same car insurance plan for too long:
Get Better Premium Rates:
You might be unconsciously paying more premium with regards to your older car insurance plan when there might be better insurance plan with lower premium for your kind of vehicle. It is true that one does not have the inclination of going through the entire process of looking for a new insurance and going through all that paperwork but if there is a significant drop in the amount of premium one is paying, then it is worth it.
Get a Higher IDV:
One is often not aware that the claim amount of the vehicle is often dependent on its IDV value- that is the Insured Declared Value. You might not know that your current car insurance provider might be providing you with a lower IDV when there are others who would give you more for the same car. You can only know about this when you start comparing the various insurance plans from the other insurance companies. Check with them to know the correct IDV of your vehicle and then for the one who pays you the highest.
No losing out on No Claim Bonus:
It is a common misconception that if one tries to move their insurance to a new company, then they would lose out on all the No Claim Bonus from the existing company but that is not the case at all. All one has to do is declare their previous policy number, insurer and NCB to the new insurer who would then get the declared NCB verified and then attach it to the accrued No Claim Bonus. Depending on the amount of this bonus, one might also be entitled to additional premium discounts.
Get a Chance to Enjoy Better Add- Ons:
Lastly, one might be losing out on the chance to take advantage of the innumerable add- ons that insurers are often providing today. In the hope of making the insurance scheme more attractive than their competitors, some of them are offering quite a few additional perks and it would not hurt you to utilize them. All you need to do is do some research, go through the various car insurance policies and compare their premium rates, their claim process and the added advantages they are offering and you are good to go to gift your car a new insurance.