Switching your car insurance company doesn’t mean losing your hard-earned discounts or protection.
Whether you’re unhappy with claim service, want cheaper premiums, or prefer a better digital experience, you can change insurers anytime during renewal - without losing your No Claim Bonus (NCB) or popular add-ons like Zero Depreciation and Engine Protect.
In this guide, we’ll explain how to switch insurers the right way, what to watch out for, and how PolicyBachat helps you compare quotes and transfer all your benefits in one seamless process.
By the end, you’ll know exactly what documents you need, how to retain your add-ons, and how to ensure there’s zero coverage gap when switching.
Why People Switch Car Insurance Companies
- High renewal premiums from current insurer.
- Slow or rejected claim experience.
- Poor customer support or outdated systems.
- Missing add-on options or limited garages.
- Better offers and NCB continuity with another insurer.
Local Note for Hyderabad: Average renewal price difference between top insurers - ₹3,200.
What You Can Transfer When You Switch
| Benefit |
Transferable? |
Notes |
| No Claim Bonus (NCB) |
Yes |
Up to 50%, valid for 90 days after expiry. |
| Add-ons (e.g., Zero Dep, Engine Protect) |
Yes |
Repurchase under new policy; benefits continue. |
| IDV & Policy History |
Yes |
Used for premium calculation. |
| NCB Protect Add-on |
Conditional |
Retained if insurer supports it. |
| Claim Record |
Yes |
Shared via IRDAI insurer database. |
How To Switch Insurers In 5 Easy Steps
1. Compare Policies
Use PolicyBachat to compare quotes from 20+ insurers based on premium, IDV, add-ons, and claim ratio.
Look for value - not just the cheapest plan.
Pro Tip: Shortlist 2–3 insurers with strong claim support in Hyderabad, Telangana.
2. Collect Your NCB Proof
- Ask your existing insurer for an NCB Certificate when your policy expires.
- Alternatively, provide your last policy copy showing your NCB percentage.
- This certificate is valid for up to 3 years even if you sell your car.
3. Don’t Let Your Policy Expire
Renew your policy before expiry to avoid break-in inspection or NCB loss.
Switching insurers is seamless if there’s no lapse.
If expired: You can still switch after inspection and NCB proof validation.
4. Match Your Coverage
When switching, mirror your existing policy’s coverage and add-ons:
- Keep the same or slightly higher IDV.
- Add Zero Dep, Engine Protect, and NCB Protect again.
- Check personal accident cover and passenger liability.
- Ensure add-ons appear in the new insurer’s policy schedule.
5. Verify & Activate New Policy
- Confirm all details (name, RC, chassis number, etc.).
- Make payment and get your e-policy instantly.
- Verify your new insurer has uploaded the policy on the VAHAN portal (for legal validity).
- Cancel the old policy only after the new one is active.
How Policybachat Makes Switching Easy
- Instant comparison of insurers and add-on bundles.
- Automatic NCB transfer from your previous insurer.
- Zero paperwork: digital e-policy issued in minutes.
- Claim history sync across insurers for seamless continuity.
- 24×7 live help during switch or claim setup.
Mistakes To Avoid When Switching Insurers
- Letting policy expire before switching.
- Choosing a lower IDV for cheaper premium.
- Forgetting to repurchase old add-ons.
- Entering wrong previous policy number or insurer name.
- Ignoring claim ratio - cheap isn’t always reliable.
Local Insights For Hyderabad
- % of drivers who switch insurers annually: 18%
- Average savings after switching: ₹4,500.
- Most retained add-ons: Zero Dep, NCB Protect, RSA.
- Top 3 insurers customers switch to: HDFC ERGO, ICICI Lombard, Bajaj Allianz.
How To Check If Your NCB Is Retained
- Look at your renewal summary - NCB should appear under “Discounts.”
- If missing, contact the new insurer with your old NCB certificate.
- IRDAI’s IIB (Insurance Information Bureau) maintains shared claim data for verification.
Example:
Old NCB: 45% → Premium ₹10,000 → New insurer applies 45% → You save ₹4,500.
When You Should Not Switch
- If you have an ongoing claim - wait until it’s settled.
- If your car is under a long-term bundled policy (3–5 years).
- If you already enjoy loyalty discounts or multi-policy benefits.
Otherwise, switching during renewal almost always reduces cost.
FAQs
Can I switch car insurance anytime?
Only during renewal; mid-term switches aren’t allowed.
Will I lose my NCB when I switch?
No, it transfers with your NCB certificate.
Can I change insurers after filing a claim?
Yes, but your NCB resets to zero.
Is switching insurers expensive?
No, there are no transfer fees.
Can I switch to a digital insurer?
Yes, all IRDAI-approved insurers accept transfers.
Can I transfer NCB after selling my car?
Yes, it stays with you for up to 3 years.
Does switching affect my claim record?
No, claim history transfers automatically.
Can I get Zero Dep again with a new insurer?
Yes, if your car age fits eligibility (usually under 5 years).
Is inspection required for switching?
Only if your old policy has expired.
Can I keep my add-ons while switching?
Yes, just reselect them in your new policy.
How long does switching take?
Usually under 10 minutes online.
Can I compare IDV across insurers?
Yes, and choose one that best matches market value.
Do I get refund if I cancel early?
Pro-rated refund based on unused period (check with old insurer).
Is PolicyBachat authorized for insurance sales?
Yes, all policies issued are IRDAI-certified.
Will switching affect claim approval next year?
No, as long as your records are accurate.
Customer Reviews
- “Switched insurers on PolicyBachat - saved ₹2,800 instantly.” - Ravi K., Hyderabad
- “Got my 50% NCB carried over - super easy.” - Neha D., Delhi
- “Old insurer denied claim, so I switched - better service now.” - Arjun M., Pune
- “Zero Dep and RSA transferred smoothly, no paperwork.” - Kavita R., Chennai
- “Comparison tool showed me 4 cheaper options instantly.” - Sneha T., Bengaluru
- “Didn’t lose any benefits - seamless renewal.” - Vikram T., Mumbai
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