Can you Save More by Renewing Your Existing Policy or by Finding a New Policy?

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Can you Save More by Renewing Your Existing Policy or by Finding a New Policy?

You’ll need valid car insurance to drive on the roads. The easiest way to have a revalidated policy is to renew with your current insurer. But can you actually save by signing up for a new policy with a different company?

Let’s take a closer look at either scenario, and weigh the pros and cons of each! 

But First, Let’s Understand NCD

Insurers incentivise you to not make claims by offering discounts on your policy. Typically, insurance discounts are in 10% increments, up to a cap of 50% for the fourth year.

This is divied up as follows:

• First level: 20% for the next year
• Second level: 30% for the next year
• Third level: 40% for the next year
• Fourth level: 50% for the next year

* Regulations from the Office of Insurance Commission (OIC)

Renew Car Insurance with Existing Insurer

If you are satisfied with the coverage and the premium, there’s little incentive to switch to a different policy provider. This is especially true if you are happy with the service provided.

Choosing a New Policy

It may be more cost effective to sign for a new policy with another insurer if you made several claims within the last calendar year. Whilst you may still get slapped with a surcharge owing to the higher risk, new customers often receive promotions, discounts, or giveaways.

Take These Factors into Account

Do not shoot for the cheapest policy, as the coverage may be inadequate. We suggest you make your insurance decisions based on these factors; 

• Coverage
• Strong Customer Service
• Easy-to-access Service Centres
• Replacement Car Provided During Repair Period

Typically, policies that cost around the same amount will offer a similar level of coverage regardless of the insurer. Do remember to utilise a company that you’re comfortable working with!

Read More: How do I Renew my Car Insurance?

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