How To Switch Car Insurance Providers & Manage A Lapsed Policy

By | July 22, 2016

How to switch Car Insurance Providers & Deal with a lapsed policy

Deciding to switch Car Insurance providers requires some thought. What should you be aware of before you change over? Here are a few things you should consider before you decide to make the switch.

Look beyond the premium  

When buying a car, you’d probably be willing to spend a little more if it meant that you would get a more powerful engine or good safety features, right? Like an anti-lock braking system, perhaps? You’d want that, wouldn’t you? Similarly, for an insurance policy, look beyond the price of the premium. Remember that the lower the premium, the lower your claim amount.

What’s on offer?

It is important to find out what your new insurance provider is offering you. There are many useful add-ons for your insurance policy like Zero-Depreciation Cover, Roadside Assistance, etc. Get all the add-ons that you need to have the best protection for your car.

Additional Reading: Do you know these Car Insurance terms?

Claim settlement

Check your new insurance provider’s claim settlement record. An insurance provider with a good claim settlement record is what you must look out for. Talk to the insurance company to find out what their claim settlement ratio is.


Look for an insurance provider that offers you an extensive network of garages and a convenient claim registration system.

Time it right

Remember to time your switch too. If you haven’t filed a claim in the year, you can get a sizable No Claim Bonus. You can avail of this within 90 days.

What about a lapsed policy?

Let’s also tell you how to deal with a Car Insurance policy that has lapsed.

If your Car Insurance lapses, don’t fret. Understand what it means and what you can do about it.

What a lapsed Car Insurance means

If your Car Insurance lapses, it means that your vehicle is not protected under an insurance plan in case your car is involved in a road accident.

What to do if your Car Insurance lapses

  • First of all, inform your existing insurance provider about it (if you want to renew your policy from the same company).
  • The insurer will schedule an inspection of your vehicle.
  • After the inspection, the insurance company will let you know what your insurance premium is and give you a confirmation of coverage for your vehicle once you have paid the premium amount.

Reasons for a lapsed insurance policy

  • Non-payment of the premium
  • Late payment
  • Non-renewal of the policy

What will happen if your Car Insurance lapses

Allowing your Car Insurance policy to lapse can create various problems.

  • Suspension of your driver’s licence
  • Penalties and fines
  • Suspension of your vehicle’s registration

Additional Reading: Decoding No Claim Bonus

Now you are wiser about what to do when you want to change your Car Insurance provider and when your policy lapses.

Have more questions about Car Insurance?

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Category: Car Insurance

About Dheeraj Kapoor

BankBazaar is the world's first neutral online marketplace for instant customised rate quotes on Loans, Credit Cards, Insurance and Investment products. Shop for financial products just like you buy everything else now - online.

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