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Is it Better to Stay with the Same Insurance Company?

Team AckoJul 22, 2021

Insurance for your car should provide more comprehensive coverage at an affordable cost. Apart from the pricing factor, the insurer should also provide a hassle-free experience during claims, renewal, and other insurance-related activities. Moreover, car insurance needs to be re-invented to keep pace with the changing times as consumers are looking for low-cost policies and superior customer experience. 

While traditional insurance companies continue to offer the benefit of financial protection, new-age digital insurance providers such as ACKO are looking to change the industry by harnessing technology to provide instant policies, super-fast claims, affordable insurance plans, and improved customer experience.

Is it Better to Stay with the Same Insurance Company?

Read on to understand how beneficial it is to switch to new-age digital insurers such as ACKO which is modern, innovative, and driven by technology.

Is it Worth Staying with the Same Car Insurance?

Car insurance is an integral part of the ownership of the vehicle as it provides financial security against damages to the car and third-party liabilities. 

Car insurance is a secure financial investment, especially during unforeseen events. Apart from providing financial coverage against accidental damages, you also need motor insurance as it is mandatory as per The Motor Vehicles Act, 1988.

You pay premiums at periodic intervals in return for financial security. But, is that enough? How about an insurer such as ACKO which provides more than just financial protection? Read ahead to know about the advantages and disadvantages of staying with the same insurance provider.

Merits of Staying with the Same Insurance Company

Depending on your insurance company and the type of policy, insurers provide a wide variety of benefits so that you stick with them. Generally, these benefits are linked to the period that you have been with the company. Here are the benefits of sticking with the same insurer.

Build a Trusted Relationship

Staying with the same insurance company for several years can help you build a trusted relationship with the insurer. Moreover, you understand how to raise claims, turnaround time, and the services provided by the insurer.

Also, when you stick with an insurance company, the insurer understands your driving behaviour and claims history so that better policy features are provided.

No Hidden Costs or Fees

With a long-term relationship with the insurer, you get to better understand your car insurance policy’s terms and conditions. Then, with a deeper understanding of the policy, you are aware of any hidden charges or costs, especially when you raise a claim.

Ease of Renewing the Policy

When you renew your car insurance plan with digital insurers such as ACKO, all you need to do is visit the website or the mobile app to renew the plan instantly. It is that easy. 

However, when you have to switch to a new insurance company, you will have to provide details of your car once again to renew the insurance policy. Some insurers may inspect your car before issuing the policy, making it a cumbersome process to switch to a new insurer.

Demerits of Staying with the Same Insurance Company

While sticking with the same insurer has its benefits, shifting to a new insurer has several advantages. For example, if you are looking for an affordable car insurance plan, a faster claim process, seamless and hassle-free procedures, digital-first insurers such as ACKO offer plans that are unique and easy on your budget.

Here are some of the demerits of sticking with the same insurance company.

You May Be Paying More

When the time has come to renew the policy, you may go ahead and renew the plan as a routine task. However, have you made an effort to compare car insurance plans in the market that may be affordable? New-age digital insurance companies such as ACKO offer low-cost premiums as it can save on operating costs due to the direct-to-customer model and 100% digital infrastructure.

Whether it is the procedure of buying or renewing the policy or even submitting a claim, ACKO has ensured it is simple and hassle-free through its user-friendly online platform. Features such as paperless transactions, three-day pickup and drop services, instant claim settlement, and the direct-to-customer model by ACKO have changed the way you buy or renew the plan and raise claims.

With the no-commission model, ACKO can design a low-cost car insurance policy along with superior services so that you can relax and be assured that you receive the best price you pay. 

Hence, you may be paying more than what you receive by staying with traditional or offline insurance companies. Therefore, it is prudent to compare and insure your car with insurers such as ACKO for a hassle-free experience and affordable motor insurance plans.

Poor Claims Service

It is only when a claim is raised, you usually see the best or worst of the insurer’s service. This is because claims are where most insurers are put to the test, and how they service the claim says a lot about their capabilities and how much they value their business.

Claims that are handled quickly, smoothly, and are hassle-free are a great experience. However, if the experience is not great, it is an indication that you better switch to a new insurer.

Being a digital-first insurance company, ACKO makes it easy for you to raise claims without much documentation. You can visit the website or the mobile app to answer a few details of the damages to submit your claim. 

Small damages such as a broken rearview mirror, dent on the bumper, etc., ACKO may instantly settle the claim through an on-account cash transfer. 

As for severe or major damages, you can take advantage of the three-day pickup and delivery services (available in select cities). Your vehicle will be picked up by our claims team from your location, repair the car at a garage and deliver it back to you within three days. 

Hence, choose car insurance from an insurer such as ACKO for superior claim service.

Lower Insured Declared Value (IDV) on Renewals

Did you know that your claim amount is based on the IDV of your car? Your current insurer might be providing you with a lower IDV on renewing the existing car insurance policy to keep the premium lower. However, when you file a claim, you will be eligible for a lower claim amount.

Check with other insurers about the IDV for your vehicle if they are providing for the same premium. Understanding the relationship between the IDV and premium amount will help you get a better deal from other insurers.

Losing the No Claim Bonus (NCB) is a Misconception

There is a common myth that you will lose out on the NCB if you switch to a new insurance company. But, that is not the case. When you buy or renew the plan with the new insurance company, you will be asked to provide the previous policy details and the NCB. Then, the insurance company will verify the NCB accrued on your previous policy and use the discount on the renewal amount.

As you earn the NCB, you continue to enjoy the discount even if you switch insurers. Hence, you can move to a new insurance company without worrying about losing the NCB and also, get better services or low-cost insurance premiums with the new insurer.

Also, read: How to Change/Switch Car Insurance Provider

Conclusion

So, do you stay loyal to your current insurer, or do you shift to a new insurer? When you insure your car, the important thing is to find a car insurance policy that offers broader coverage at a lower cost. However, beyond the pricing factor, you must understand that procedures such as buying or renewing the policy or even raising car insurance claims are hassle-free and simpler. 

Not only does ACKO provide low-cost car insurance premiums, but it also offers instant policy, instant claim settlement, pickup and drop facility, and much more. All these benefits are through a robust digital infrastructure that lets you insure your vehicle without any hassles.

Hence, staying with insurers such as ACKO offer you peace of mind knowing that your car is well protected with the benefits of faster online transactions.

Frequently Asked Questions

Here are some of the commonly asked questions about car insurance.

FAQs

If I switch to ACKO, will there be an inspection before my car insurance policy is renewed?

If your previous policy has expired, then ACKO will inspect the car before insuring the vehicle. However, if you renew the policy before the expiry date, there is no inspection.

Should I cancel my previous car insurance policy before I switch to new car insurance?

No, you do not have to cancel the previous policy. Instead, renew the policy with ACKO before the policy expires. You can do this without any paperwork. Simply share the details of your car and previous policy on the website or mobile app to renew the policy instantly.

How to shift to ACKO car insurance?

You can change or switch to ACKO by purchasing the policy on the website or mobile app. Download the app or visit the website, share a few details of the vehicle and previous policy, and insure your car instantly without any paperwork.

Is it wrong to change insurance companies?

Switching to a new insurer such as ACKO can save you a lot of money on your premium amount. You also get to enjoy the benefits of super-fast claims, unique plans, and discounts. All these benefits on a robust online platform make it easy for you to buy, renew or raise claims.

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