What is Rollover in Motor Insurance?

Is your car insurance about to expire? Do you want to stick with your current insurer? However, you may have also heard that switching to another company might result in a better premium. But about the accumulated benefits? If you change your insurer, will you lose all the benefits you have earned so far? That is where the concept of rollover in motor insurance comes in.

What Does “Rollover” Mean in Motor Insurance?

In the motor insurance context, rollover refers to the process of moving your existing policy (or its benefits, such as No Claim Bonus) from one insurer to another at the time of policy renewal, without losing gains you have earned with the present insurer. In other words, instead of just renewing your car insurance with the same company, you roll over the policy and shift it to a different insurer.

It is different from a simple renewal, where you continue with the same insurer for another term. In a rollover, you switch insurers but carry forward benefits, such as No Claim Bonus or discounts, without being penalized.

Some insurers may also use “rollover” to mean renewing a policy before it expires, but in India, the more useful meaning is about switching insurers while preserving accrued benefits.

Why Is Rollover a Good Idea for Car Owners?

Many car owners refrain from switching between insurance providers because they fear losing benefits they have accumulated over the years, especially the No Claim Bonus (NCB). Rollover lets you keep the rewards you have earned, so you don’t have to stay with the same insurer only to hold on to them.

In India, because motor insurance is mandatory, and because premiums and features vary widely across insurers, rollover gives policyholders flexibility to shop and choose better deals.

How Is Rollover Different from Renewal?

To get a clear insight into the difference between Rollover and Renewal, follow the table given below:

When you choose a rollover instead of pure renewal, you can renew motor insurance online or offline with a new insurer, but carry your benefits along.

Rollover Car Insurance in India: Easy Steps to Apply

Follow the steps below to rollover your motor insurance policy in India:

• Get a clear idea of the NCB you have accumulated, discounts (if any), and claim history, etc.
• Get quotes from multiple insurance providers. ​Check with reliable insurance brokers like Policybazaar to get competitive offers.
• Choose a new insurance company. Make sure to choose a new insurance provider after comparing multiple options. When comparing options,
• Consider factors such as the premium, features, reputation, and claim settlement record to help you choose the best one.
• Apply for a motor insurance policy rollover. When you apply for a new policy, do let your new provider know about your current policy and that you want to carry forward your benefits.

The following documents are likely to be asked for rollover motor insurance in India:

• A copy of your previous policy documents
• Renewal notice reflecting NCB
• A certificate of claim history
• Registration number of your car
• Approval and policy issuance. Once the new insurance company has verified your information, it will send you your policy and benefits, provided everything is in order.
• Inform your previous insurance partner. Once the new policy is active, ensure that you inform or cancel your old policy to avoid overlap.

Legal and Regulatory Considerations for Rollover

• The Insurance Regulatory and Development Authority (IRDAI) does not prohibit switching insurers.
• When it comes to carrying forward benefits like NCB, the insurer may request proof, such as renewal notices and claim history certificates.
• Ensure that you complete the paperwork before the expiration date of your current policy. A lapse in the period is likely to result in the loss of benefits or an inspection.
• Sometimes, insurers may impose terms on how many days before expiry you can rollover or how many days after expiry you can renew without penalty.

Benefits of Rolling Over Motor Insurance 

The following are the benefits of motor insurance rollover:

• As you can compare various options before rollover, you can switch to an insurance provider with better premium options. It helps you save money in the long run.
• You keep your No Claim Bonus, so you do not lose the rewards you have earned.
• Switching insurers is likely to give you access to better features, add-ons, service, claim handling, or other benefits.
• Most insurance companies are most likely to offer better deals to retain and attract customers. So, you can take advantage of the ever-growing competition in the market.
• Since you are not tied to one insurer just to keep your benefits, you get more flexibility and control.

Rollover - When is the Right Time?

You might consider rolling over your motor insurance plan in India when:

• The renewal premiums of your existing insurance provider are high.
• You find a better offer and a lower premium from another insurance company.
• The quality of service and claim settlement record of your current service provider do not meet your expectations.
• You wish to add new features or riders (that are not available with your current insurer).
• Your renewal date is near, and you are looking forward to exploring options.

Best Insurer to Rollover in India

There is no one “best” insurer for rollover for everyone. The best choice depends on:

• Premium quotes offered
• How smoothly do they accept your NCB / past record?
• Their claim settlement ratio and customer reviews
• Their network of garages
• Service quality and support
• Some large insurers are more flexible with rollover; smaller ones may have stricter verification. Do your comparison (car insurer comparison) and select based on your priorities.

Conclusion

A rollover in motor insurance lets you change your insurance provider at your car insurance renewal. The best part - it lets you switch to another insurer without losing the benefits you have gathered over your previous policy term(s).

Also, it opens up many options for you, for example, better premiums, features, add-ons, and customer service while retaining what you have earned with your old insurer so far. With the right timing and paperwork, it can also save you money.

Is your car insurance up for renewal? Compare options before you decide. Check if your benefits can be carried forward, and switch only if it gives you a better deal. Consult with a motor insurance advisor for a better understanding.

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