Common reasons that make customers switch car insurance companies

By Deepak Yohannan

Updated: Monday, November 26, 2012, 12:28 [IST]

Car insurance is one of the most important kinds of insurance worldwide. With regulations making it compulsory for every vehicle owner to have such an insurance, hundreds of policies are sold every day. However, the policyholders often have long lists of complaints against their insurers and many feel that it is hard to get a claim smoothly. This happens due to a number of reasons, and as a result the car owners are forced to switch insurance companies. What are the reasons and how would you evaluate them? Read this article and find out why and when you should switch car insurance companies.

Reasons

1. Inconsistent costs - A lot of insurance companies offer very attractive deals upfront just to increase their customer base. However, policyholders often are tricked into paying higher than expected fees, at regular intervals. This proves to be one of the main reasons for switching insurance companies. May be you were offered a competitive price when you purchased the policy, but if the pattern changed, you should think about other insurance providers. Run a comparison online to know what the available options are.

2. Not enough coverage - The most important reason for taking an insurance policy is coverage. However if you find that your insurance policy isn't adequately covering your needs, then you must change the policy. If your current insurer doesn't have policies that match your requirements, it would make sense to switch your insurance company.

3. Lengthy claim settlement process - Some insurance companies handle claims very badly. They make the process lengthy and unnecessarily delay paying the dues. This makes it very difficult for the policyholders who, out of sheer frustration and anger, turn to a new car insurance provider.

4. Unsatisfactory customer support - Unprofessional attitude of the customer support teams also leads people to change their insurance providers. Once the policy is sold, some companies begin to ignore their customers and deal with them rather rudely when they contact for claim related queries. This is obviously a very valid reason, for if you pay money you are bound to expect good service overall.

When to evaluate

It is advisable to evaluate your motor insurance needs annually. It may be possible that ever since you bought the policy, your needs have changed or better policies have surfaced in the market. For instance, if you have fixed additional accessories in the car for which you need cover (your current policy doesn't cover it), look for a new insurer who would cover it.

While is it a good practice to evaluate your car insurance needs often and shift to new insurance companies if needed, do not take any decision in a hurry. First try to work the terms out with your current insurance provider. Negotiate with them and see if your current policy can be modified. Voice your grievances and even if there is no improvement, only then consider a switch. A lot of people switch car insurance companies without proper thinking and literally jump from the frying pan to the fire! So avoid such mistakes and choose wisely.

For more articles by Deepak Yohannan, please visit MyInsuranceClub.com