When is the Right Time to Change Your Car Insurance in 2025?
When is the right time to change my car insurance Buying car insurance is more than just following the law—it’s about protecting yourself, your vehicle, and others on the road. In India, driving without valid car insurance is illegal under the Motor Vehicles Act. But beyond compliance, insurance ensures that an unexpected accident, theft, or natural disaster doesn’t drain your savings.
Still, one of the most common questions car owners ask is:
👉 “When should I change my car insurance policy?”
Why Changing Car Insurance Matters
Many car owners stick with their first policy without reviewing it. But as your car ages, your driving habits change, or new insurance offers become available, your current plan may no longer be the best option.
Reasons you might want to change include:
- High premium compared to competitors
- Poor claim settlement experience
- Limited cashless garages near you
- Policy add-ons not matching your needs
- Better offers with higher IDV (Insured Declared Value)
💬 Customer Experience:
“I had taken my first car insurance from my dealer when I bought my Swift. But when I claimed for a minor accident, I realized the garage network was very small. Next year, I switched to ICICI Lombard through PolicyBazaar. Now I get faster service and better claim settlement.” – Rajiv, Pune
When is the Right Time to Change Your Car Insurance?
The truth is—there’s no single “perfect” time. But there are specific scenarios when switching makes sense.
1. At Renewal Time
The most common time to change your insurance is when your policy is about to expire. Compare policies 15–30 days before renewal to avoid a coverage gap.
👉 Example: If your annual policy expires on 31st March, start comparing policies in the first week of March.
2. After Buying a New Car
The moment you purchase a new car, you must have valid insurance before driving it out of the showroom. Dealers often tie up with insurance providers and may push their preferred policy. But you’re free to compare online and choose one with better benefits.
💡 Pro Tip: Don’t just accept the dealer’s insurance blindly. Online policies may give you up to 20–25% cheaper premiums with more add-ons.
3. If You’re Dissatisfied with Claim Settlement
A smooth claim process is the heart of car insurance. If your insurer takes too long (high TAT – Turnaround Time), rejects claims unfairly, or reimburses less, it’s a red flag.
💬 Customer Experience:
“I had Reliance General for 2 years. My claim took almost 45 days to settle and the garage demanded upfront cash. I later moved to HDFC ERGO, which gave me cashless settlement in 4 days. It made a huge difference.” – Sneha, Delhi
4. When Premiums Are Too High
Insurance premiums vary across companies even for the same car model and city. If you feel you are paying too much, compare quotes online.
👉 Example: A Hyundai Creta (2020 model) owner in Bangalore found that premiums ranged between ₹12,000 and ₹18,000 depending on the insurer. By switching, he saved ₹6,000 annually.
5. After Major Life Changes
- If you shift to a new city → Check for insurers with a wider garage network there.
- If you start driving more (office commute, outstation trips) → Opt for higher coverage.
- If your car gets older → You may reduce coverage and drop some add-ons.
6. During Mid-Term (with Caution)
Many people don’t know you can change insurers midway through your policy. However, check if your current insurer has a “Policy Earned at Origination” clause. If yes, you may not get a refund for the unused months.
💡 Always overlap policies: Ensure your new policy starts a day before the old one ends. This avoids even a minute of being uninsured.
Car Insurance Comparison: Top Indian Providers in 2025
| Insurer | Claim Settlement Ratio (CSR) | Key Benefits | Average Premium (₹) for Hatchback | Customer Feedback |
|---|---|---|---|---|
| ICICI Lombard | 97% | Strong garage network, fast settlement | 8,000–12,000 | Very reliable for cashless claims |
| HDFC ERGO | 96% | Zero depreciation add-ons, 24×7 support | 7,500–11,500 | Quick claim turnaround |
| Reliance General | 95% | Competitive premiums | 7,000–10,500 | Slightly slow claim process |
| IFFCO Tokio | 95% | Affordable for older cars | 6,500–9,500 | Good for rural areas |
| Bajaj Allianz | 98% | Excellent digital claim app | 8,000–12,500 | Very positive customer reviews |
Buying Guide: Steps to Change Your Car Insurance
- Evaluate Your Needs
- Do you need comprehensive or third-party only?
- Add-ons like zero depreciation, roadside assistance, engine cover?
- Compare Premiums & Coverage
- Use online platforms like PolicyBazaar, Coverfox, or insurer websites.
- Check Claim Settlement Ratio (CSR)
- Always choose insurers with 95%+ CSR.
- Look for Cashless Garages
- Ensure your preferred service centers are in their network.
- Read Policy Terms
- Watch out for hidden charges, deductibles, or exclusions.
- Port Your NCB (No-Claim Bonus)
- If you’ve not claimed, transfer your bonus to the new insurer.
- Overlap Policies
- Ensure the new policy starts before the old one ends.
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FAQs on Changing Car Insurance
Q1: Can I change my car insurance mid-policy?
👉 Yes, but check refund terms. Always ensure continuous coverage.
Q2: Do I lose my No-Claim Bonus if I switch insurers?
👉 No, your NCB is transferable. You just need to provide proof.
Q3: Should I always go for the cheapest premium?
👉 Not necessarily. Look at claim settlement, add-ons, and service quality.
Q4: How early should I renew my policy?
👉 15–30 days before expiry is ideal.
Q5: Is dealer-provided insurance better?
👉 Not always. Dealer policies may cost more. Compare online before deciding.
Q6: What if I forget to renew on time?
👉 Driving without insurance is illegal. Insurers may also send surveyors to reinspect your car before renewal.
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Real-Life Lessons
- Case 1: Premium Savings
Ramesh (Hyderabad) switched from a dealer policy to an online ICICI Lombard plan. Premium dropped from ₹14,500 to ₹9,200. - Case 2: Faster Claims
Shreya (Delhi) had a poor experience with Reliance General (45-day claim). She shifted to HDFC ERGO, where her claim got settled in 5 days. - Case 3: NCB Transfer
Amit (Bangalore) sold his old WagonR and bought a Creta. He transferred his 50% NCB to the new policy and saved ₹6,000.
Final Verdict: When Should You Change?
- At renewal → Best time to compare and switch.
- After dissatisfaction with claims → Change immediately.
- After buying a new car → Don’t just take dealer insurance; compare online.
- When premiums rise too much → Look for better offers.
👉 Rule of Thumb: Always keep continuous coverage, transfer your NCB, and choose an insurer with a high claim settlement ratio and good garage network.
