Car Insurance Portability: Policy portability means switching between different car insurers. If you are not happy with your car insurance company, you can opt for policy portability.
Car Insurance Portability: Generally, people consider the colour, engine, features and price while buying a new car. But at the same time car insurance also needs to be considered seriously. Buying a car insurance policy in a hurry may make you regret it later. You may later realize that due to lack of knowledge or haste, you have not chosen the right car insurance policy for your needs. Also, it may happen that you may not be happy with the services of your existing insurance company. In such a situation, you can opt for policy portability.
What is policy portability
Policy portability means switching between different car insurers. The concept of policy portability works similar to SIM portability. This facility will help you to switch to another insurance company if you are troubled by your car insurance insurer. Whenever you buy a policy, remember that it is not an obligation on you to continue with the same company. With car insurance portability, the policyholder has the option to switch to another company even in the middle of the policy term without losing the features of the existing policy
There can be many reasons for portability. You can opt for policy portability for uniform coverage at lower premium cost, better value added services or easier claim settlement process. In simple words, if you are not happy with your current insurance company then you can opt for policy portability. It should be noted that when you port your policy, you have to agree to the Insured Declared Value (IDV) and premium of the new company. However, once you have successfully ported your car insurance policy, the benefits of your previous policy, such as No Claim Bonus (NCB), are carried forward to the new policy.
What is the best time to port car insurance?
There is no rule regarding the timing of porting a car insurance policy. Experts recommend that it is best to switch at the time of car insurance renewal, that is, within 45 days of the expiry of your existing policy. Through this, you can take advantage of existing policies like No Claim Bonus, No Vehicle Inspection
- Policy Expiry Date – As mentioned above, if you want to change your insurance company, you should start the process at least 45 days before the policy expiry date. You lose out on benefits like No Claim Bonus, No Vehicle Inspection in case the car insurance policy lapses.
- Market Value of your car – The value of your car depreciates over time due to various factors that affect the premium you pay. If you are looking to switch your insurance company, make sure you check the current IDV or Insured Declared Value of your car as this will replace your premium with the current policy.
- Online Policy Comparison – Before choosing an insurance company or policy, it is advised that you do your research thoroughly. You can compare premiums offered by different insurance companies online or by reading reviews. Remember that you have taken the decision to port the policy because you have made a mistake once. Therefore, it becomes necessary to be more careful in the second time.
- No Claim Bonus (NCB)- The insurance company rewards you with a no claim bonus if you do not file a claim for a full year or more. If you do not claim every year, you can get a discount on the premium at the time of renewal. While switching, ensure that the NCB benefit from your existing policy is transferred to the new policy.
- Claim Settlement Ratio – It is very important to check the claim settlement ratio while choosing any insurance company. The amount of claim settlement a company makes in a year, it shows its financial stability. The higher the claim settlement ratio of a company, the better it is considered. You should check the claim settlement ratio of a company for at least the last five years.
