Is Car Insurance Portability Beneficial?

Car insurance is one of the most important pieces of the document that one needs to keep with themselves while driving. It secures not only your car against financial liabilities arising from unwanted mishaps but also you from being booked. Owning a car without insurance is illegal in India.However, there are cases where the customers have some issues, including claim settlement or policy coverage, regarding their insurance policies that are not being solved in time. This is where car insurance portability comes into the picture. Using this mechanism, every policyholder can switch their respective policies to the desired insurance provider.

Not all problems arise at the insurer provider’s end. Some insurance portability are done just to opt for better coverage available at lower costs.

1. One of the most common issues is regarding the claim-settlement policy, which is usually very complex. Hence, the one who offers the simplest among the lot gets the customer.
2. Add-on covers are one of the best alluring features for any insurance. So, when a car insurance policy has better options for add-ons that comeat the same premium, customers tend to port their insurance quickly.

Apart from getting these issues to resolve, there is one additional point that drives many consumers towards car insurance portability. In a car insurance policy, the No Claim Bonus (NCB) is also ported. Here the NCB can go up to 50% of the premium, which in itself is a sizeable amount. Moreover, porting also permits you to keep the discount in premium whether you switch it for a specific car or get it for a brand-new car.However, it is important to remember that you can lose the NCB in case you forget to renew your insurance on time or if you make a claim.

1. When you have decided to port, wait for the right time - just before the renewal of your policy.
2. It is imperative to search and finalise a policy beforehand so that you are not gasping for breath at the last moment of policy porting.
3. Get your quotes from various insurance providers, so you have the option to choose the best from the lot.

Moreover, whether you are porting or going for new insurance, keeping your documents intact is the most important part of the process. Always be updated with the requisite documentation and keep the copies of your existing or expired policies intact for the renewal process.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.