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Car insurance portability: meaning, need and benefits

Team AckoOct 11, 2021

Your car insurance plays a vital role in shielding you financially against unforeseen accidental damages or losses. However, with time you may realise the existing policy is not meeting your expectations. So, how do you rectify the shortcomings? Switch to a new insurer that offers a better experience and services for your car insurance policy

Switching to a new insurer is also referred to as car insurance portability. In this article, let’s walk through the concept of portability in car insurance.

Car Insurance Portability

What is motor insurance portability?

Similar to mobile number portability, this concept allows you to switch to a different insurance provider. You need to choose an insurer and port the plan to the new insurance company. Upon switching to a new insurer, benefits such as No Claim Bonus (NCB) — a discount you earn for not filing a car insurance claim during the policy tenure — is transferred to the renewed plan.

Need for car insurance portability

Here is why you may have to switch to a new insurer.

  • To unlock the same coverage at a better price

  • To get better coverage.

  • To avail of a better claim settlement experience.

  • To access better services such as easy repairs.

What is the best time to port a car insurance policy?

There is no fixed time to port your car insurance plan. However, it is advised that you switch to a new insurer at the time of car insurance renewal. By renewing the policy within the expiry date, you continue to enjoy the NCB, and there is no need to inspect your car.

Hence, renew car insurance online within the due date, provide your previous policy details and port your car insurance to a new insurer.

What to keep in mind while porting car insurance?

When you are scouting for a new and better car insurance plan for your vehicle, it is vital that you take note of the below factors to secure your car with the right insurance plan.

  • Awareness of the expiry date of the plan

As stated above, it is essential to renew the car insurance plan before its expiry date. NCB is valid for 90 days from the date of expiry of the plan. If you do not renew the policy within the prescribed timeline, you will lose the NCB benefit. And, if the policy expires for a longer duration, your car will need an inspection by the insurer to renew it.

  • Compare plans online

Your existing plan may not have provided you with the best of experiences. Hence, it is wise to research and get the right plan and insurance company for your vehicle. The online platform lets you compare car insurance plans and insurers so that you can choose the proper insurance plan.

  • Don’t lose the NCB

When you do not raise any claims during the policy period, your insurance company offers you a discount in the form of NCB. The discount can go up to 50% if you do not file any claim for five consecutive years. While switching to a new insurer, ensure you transfer the NCB benefit to the new plan.

  • Check the Insured Declared Value (IDV)

While switching to a new insurance plan, check your vehicle’s IDV (the approximate market value). Ensure you select the approximate IDV to get the proper car value in case of theft or a total loss.

Benefits of car insurance portability

Here are the benefits of switching to a new insurance company.

  • Enables you to move to a new and better insurance company.

  • You have the option to transfer the NCB to the new plan.

  • You can include better car insurance add-on covers to boost your primary plan.

  • You get to experience better services such as hassle-free claim settlement, easy repairs, etc.

In a nutshell

While car insurance provides financial protection against unforeseen damages or losses, it should also provide a hassle-free experience. While your current insurance plan may offer a higher sum insured, you may not be happy about the insurer’s services. This is when you need to move to a new insurance company for a better experience.

Frequently asked questions

Here are a few common queries about car insurance portability.

What are the tips for switching to a new insurance company?

To select the right insurance company, ensure you follow the below tips.

  • Ensure you get maximum coverage at a lower premium. The new insurance plan should cover third-party liabilities, damages or losses to your car, and access to valuable add-on covers.

  • Check the claim settlement ratio (CSR) of the new insurer for a smoother claim settlement.

  • Opt for an online insurance company for a faster and hassle-free car insurance experience.

  • Switch to a new insurance company ahead of the expiry date of the existing policy to get maximum benefits.

Can a vehicle be insured twice?

No, you cannot insure a vehicle twice. You need to secure your car with a Third-party Insurance Plan or the Comprehensive Insurance Plan. But, you cannot buy two different insurance plans from two different insurance companies.

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