Is Switching to Car Insurance a Good Idea After an Accident?

Tech-based insurance companies have grown at a rate never seen before, especially since the pandemic. People are getting used to looking for everything they need online. Traditional and tech-based insurance companies have changed a lot as they try to meet the changing needs of their users.

It has given the customer a lot of options when it comes to car insurance. Check apps, and as a customer, you can now move from one provider to another anytime and for any reason. But if something goes wrong, the story might be different. After an accident, if you want to switch service providers, here are some things you need to know first.

Your “No-Claims” Status Is Important

If you move insurance companies after your car has been in an accident, the company may raise their rates. But let’s look at how a claim changes the price of your insurance when it’s time to renew. If you have yet to claim during the policy time, you get a No-Claim Bonus (NCB) concession. This concession starts at 20% off your damage insurance if you go a year without making a claim. If you don’t claim for five years, the total amount goes up to 50%. If you make a claim, your no-claim bonus will be returned to zero, and your car insurance renewal online rate will increase.*

Switching insurance companies will only help because you must tell your new insurance company about your current no-claims bonus and pay the correct rate. If your claim history or no-claim bonus is right, your claim could be allowed. So, moving providers after making a claim is not a great idea.*

Think About The Situation

If you’ve already made a claim, consider all your options before renewing. The right choice feels premium, claim service, and customer reviews. When you filed a claim, you had to know the coverage amount for the base goods and the benefits of the different add-ons. It would be helpful to compare various add-ons and covers based on your driving needs.

Your needs and circumstances change every year. These changes require different insurance coverages & car insurance renewal premiums, so it’s best to determine which company and product are suited for your needs and switch.

Check How Often Claims Are Paid

There are a few reasons why switching insurance companies can be helpful. If you had a bad claim experience with a company, you should change to a different one. Companies should ideally make it easy for customers to file claims, but this rarely happens because customers have to deal with paperwork and optional questions. It would help to choose a business with an easy way to settle claims.

Avoid Using Brokers Wherever Possible

Sometimes, you may end up paying more for your car insurance policy because of middlemen fees. Similarly, when you renew your policy, the insurer pays the agent a commission, raising your rate. To avoid this raise, if you want car insurance, check the app or reach out to them online to get ideal deals.

Get insured anytime, anywhere! Check out the Bajaj Allianz General Insurance website to learn more and download the app now.

*Standard T&C Apply

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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