Still staying with the same motor insurance policy? Here are the pros and cons you should know

Many people do not have enough knowledge about motor insurance plans available in the market and they just manage with whatever they get from the nearest source. This can put you in lot of trouble if you are not choosing the suitable plan for your vehicle. In some cases, it may not be giving you the best value for your money and you need to analyze this factor carefully with your existing car insurance plan. The simple act of comparing your plan with other plans from competitors will help you to understand the worthiness of your plan. If you find that what you are having is good enough for your vehicle, you can continue to stay with the same plan. On the other hand, when you are not satisfied with some of the features of your existing plan, you can easily choose better options as there are many service providers in the market. In this regard, let us take a detailed look into the advantages and disadvantages of sticking to your existing vehicle insurance plan.

Pros of staying with the same motor insurance policy

There are few advantages of staying with the same company for your motor insurance policy. The car insurance rates will remain more or less same and you will not have to search for new options every year. This offers convenience for many consumers and they are more than happy to just renew their policies with the same service provider.

Advantage of getting no claim bonus

One thing you need to understand about motor insurance is that you may never use the insurance throughout the year if you do not face any damages due to accident or theft. In this scenario, the company is likely to reward you by offering lower premium rates for the renewal of the policy. This encourages safe driving habits among consumers and the car insurance rates will decrease if you do not make any claims for the entire tenure of the policy.

No drastic increase in premium even after accident claim

Even when you have to make a claim due to accident, the premium for the next year will not go drastically high as the company will reward loyalty. In some cases, they may even consider keeping the same rates for the premium if the claim amount is not very high. In this situation, you will have the advantage of paying same car insurance rates even after making accident claims. This may not be possible with a new service provider and you will end up paying additional premium when you have made claims in the previous year.

No paper work involved every year

Many people are fed up with lots of paper work to be done for the insurance policies. When you stick with the same service provider, you will have very less paper work and you can easily renew the policy without any hassles. In most cases, you can even do the online renewal without the assistance of any agent. This is a convenient option if you are very busy to search for a new service provider.

Overall cost of getting insurance decreases

Remember that when you want to change your insurance service provider, you will have the start the process from the beginning and this may involve additional charges apart from the regular premium charges. Sometimes, you may not notice these hidden charges when you are presented with attractive car insurance rates from the new service provider. You need to be careful and avoid such things as much as possible. When you stay with the same service provider, you will not have these additional hidden charges and the overall cost of the policy is likely to reduce by a huge margin.

Cons of staying with the same motor insurance policy

While there are certain advantages of sticking with the same service provider, you need to understand that there is huge competition among service providers in the market and you will be missing out on new and attractive features.

You may not be getting the best deal

The market has opened up with regards to auto insurance in India and you have to be updated with the latest offerings from different service providers. When you are staying with the same policy, you may be continuing with the old features and you will not be able to get the best deal for your vehicle. This will not provide the full value for your money in the long run. You can negotiate for discount with a new service provider and also get various additional features that are not available in your existing plan. The car insurance rates may also reduce by a huge margin if you are able to find the suitable service provider for your vehicle.

You will be missing out on new options in market

Many service providers offer additional riders that offer various benefits for the consumers. You can thoroughly research the market conditions and understand the new options available for your situation. This is not possible when you blindly renew your policy with the existing service provider. You need to consider the advantages of getting service from a new service provider for your vehicle. This can help you to get new features added to your policy that is usually not possible with your current service provider.

In this manner, you need to take the suitable decision after considering the pros and cons of shifting to a new service provider. If you notice that the car insurance rates are not changing drastically even when you are shifting to a new company, you can stay with the same service provider as it will give you many advantages in the long run. In the same manner, if you have more than one vehicle, it makes sense to stay with the same company for both the vehicles as this may give you additional discount with regards to reduced premium. Before you plan to move to a new policy, get in touch with a professional advisor and discuss your plans. This can give you the complete value for your money spent on the insurance policy.