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Understanding Car Insurance Portability

Car Insurance Portability

Compare and switch Car Insurance at the time of renewal

When you are unhappy with the current car insurance service provider you can switch to another Insurer with car insurance portability. One can switch car insurance company at the time of car Insurance renewal by comparing the best car insurance quotes. If the insured policy expectation is not matching with the current service provider, the customer can avail the option of car insurance portability.

Reasons to opt for Portability

  • A policy with a lower premium is available with the same coverage
  • A policy with a better coverage at the same or lower price is available
  • Claim experience from the previous insurer was not smooth
  • Another company is offering better add-on covers at the same premium

Things to keep in mind when renewing car insurance online

Expiry Date

45 days before policy expiry is the ideal time to start the comparative search and policy renewal process. A lapsed car policy requires the vehicle to be inspected by the authorized surveyor appointed by the Insurer. Insurance Company can levy an additional charge for a break-in car Insurance.

Add-On Covers

You should check all the Add-on coverages like zero depreciation, engine protects, return to invoice, roadside assistance, consumables cover, loss of key at the time of renewal. There might be some add-on coverage which should be added and some for free which do not need to be paid for.

Shop Around

The customer should compare car insurance policies before renewal. With an option to compare online, this does not take much time. The process is hassle-free and simple and gives a better idea of coverage, premium break-up and policy delivery to inbox in minutes.


When renewing the car policy, the documents of the previous policy must be readily available. The insurance company needs these documents to know the claims history and also calculate the NCB. Registration copy, previous policy copy and Pan card copy (for the premium above Rs.50,000) are the mandatory documents needed by the Insurers at the Renewal time.

No Claim Bonus

If there are no claims in a policy year, the insured is eligible for a no claim bonus. The NCB is a discount on the Own Damage Premium, which overall reduces the Premium. Insurance company gives rewards to the consumer for safe driving

Market Value of Car

The fair market value of the car (insured declared value) to be ascertained as this will have an impact on the premium. A car depreciates every year as per the depreciation matrix and thus, the insured declared value (IDV) changes and so does the premium.

Fine Print

Buying the cheapest policy is not the best thing to do always. The detailed coverages and clauses of the policy to be carefully read and understood at the time of insurance renewal. A failure to do this can result in unhappiness and hassles when the claim is repudiated. Hence you can do an online car Insurance comparison with what’s covered and not covered to take an informed decision.

Steps to Follow When Changing Insurer

The insured has the option to change the insurance company at the time of policy renewal. By following basic steps:

The Policy

Third party car insurance cover is mandatory by law in India for any car owner. But Third Party Car Insurance is suitable for older vehicles which are more than 15 years. One can check for Comprehensive Policy or Package Policy while buying Car Insurance. Vehicle coverages should be adequate so that there is no financial burden in case of Total Loss or Theft.

Claim Settlement

The claim settlement ratio and the reputation of the company plays an important factor in deciding the switch. A low premium but a cumbersome claim process is not the ideal situation to be in. The insurance company should have a good claim settlement ratio and a good network of garages for cashless claims.

Time the Move

With sufficient time in hand, the insured can negotiate with the existing insurance provider and also compare car insurance online to get a better deal.  Thus, renewing the policy and transferring it from one company to the other before the expiry of the policy is advisable while keeping the benefits of No claim bonus.

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