Do you have a car insurance policy and are looking to change the service provider for a better and cheaper plan than the existing one? While this may sound easy, changing the insurance company has to be an informed decision. So, here’s what to know before switching car insurance providers.

Find a Good Insurance Company
This is one of the most important and time-consuming tasks. You will have to talk to different insurance providers or gather information about them online. So, be prepared to take some time out from your busy schedule. After shortlisting your providers, compare the different insurance plans and quotes they offer before zeroing in on one.

Check the Claim Settlement Ratio
When you’re thinking about what to know before switching car insurance providers, this is an important point to remember. Always choose an insurance company with a high claim settlement ratio, as it means they have settled many claims and can be trusted. If the provider doesn’t settle when you need it, the premium you paid so far goes waste. So, check and compare the claim settlement ratios of different insurance companies before switching the insurance provider.

3. Premium amount: When you take a car insurance policy, you have to make timely premium payment to renew the plan and keep it active. In case you are unable to pay the premium for your current car insurance policy due to financial burden, job loss or any other factor, you can change the insurance company and choose a plan with a lesser premium amount.

Analyze the Add-ons
While looking for a new insurance provider, do not forget to analyze the add-on benefits the company offers. If your existing insurance provider isn’t offering attractive options, you can opt for another one. A company that offers adequate add-ons, such as zero depreciation, NCB protection, and engine protector can be an ideal option. This is a smart choice that widens your insurance coverage and boosts policy benefits.

Update Your Current Insurer
When you plan to switch your car insurance provider, make sure your existing insurer is aware of the decisions you make about the plan. This can be beneficial for you as your current insurer may offer better deals to suit your preferences. If this works well, it will save you from the hassles of canceling the existing policy and looking for a new car insurance plan.

If you are wondering what to know before switching car insurance providers, make sure you keep the above tips in mind. No insurance company binds you to a policy and you can change the plan or insurer whenever you want. But consider the pros and cons of canceling a policy to avoid hassles later.