Car insurance in India is more than just a legal obligation – it is a clever way to safeguard yourself and your car from unexpected troubles. Remember, it is not a one-time deal; you need to renew it annually to stay protected and reap its advantages. If you are unsure about the renewal process and how to go about it wisely, stress not! We have covered you with valuable tips to make the right choice and even save money. So, let’s explore the best ways to hassle-free renew your car insurance policy!
Key Considerations Before Making Car Insurance Renewal
Given below are some key pointers that you should keep in mind while renewing your car insurance –
- Compare various policies
Before you renew your car insurance, comparing different policies is a good idea. Look at what they offer, how much they cover, and how much they cost. You can do this easily on insurance aggregators’ websites that gather all the information for you. When comparing policies, you can find the one that best fits your needs and budget.
- Choose the type of plan
When you renew your car insurance, you have two choices: a third-party liability policy and a comprehensive policy. The third-party policy covers any damage your car causes to others or their property. But it won’t pay for damages to your vehicle. On the other hand, the comprehensive policy covers the damages to others and your car. It also protects against theft, fire, and natural disasters. While comprehensive insurance offers more coverage and peace of mind, it comes at a higher cost than the third-party option. So, it is essential to pick the plan that aligns with your risk appetite and what you can afford.
- Consider add-ons
Add-ons are additional perks you can add to your existing car insurance policy. They enhance the protection your insurance offers. Some examples of add-ons include zero depreciation cover, engine protection cover, no claim bonus in car insurance cover, and consumables in car insurance cover.
These add-ons can be helpful because they can lower out-of-pocket expenses while making claims. However, it is essential to know that adding these features will also increase your insurance premium. So, choose only those add-ons that suit your specific needs.
- Check the IDV
The insured declared value (IDV) is the present market worth of your car that determines the compensation amount in case of total loss or theft of your vehicle. The IDV decreases with the depreciation of your car over time. When you renew your car insurance policy, you should check the IDV offered by the insurer and make sure it is adequate and realistic. If the IDV is too low, you will get less compensation in case of a claim. If the IDV is too high, you will unnecessarily pay more in a premium.
- Check the deductibles
A deductible is the amount you must pay from your pocket before the insurer pays the claim amount. There are two different types of car insurance deductibles – compulsory and voluntary. The insurer fixes the former one, and you cannot change it. On the other hand, you choose the latter and can increase or decrease it as per your preference.
A higher deductible lowers your premium. But it also reduces your claim amount. Whereas; a lower deductible increases your premium but also increases your claim amount. You must go for a deductible that balances your premium and claim expectations.
- Check the NCB
The no-claim bonus (NCB) is a reward the insurer gives for not making any claim during the policy period. The NCB is a percentage discount on your premium that increases with every claim-free year up to a maximum of 50%. The NCB can help you save a lot of money on your car insurance renewal. However, making even one claim during the policy period will lose your entire NCB. Therefore, you should avoid making small claims and preserve your NCB for bigger savings.
- Renew on time
One of the most essential tips for renewing your car insurance policy is to do it on time. If you miss the renewal date, your policy will lapse, and you will lose all its benefits and protection. You will also have to pay a penalty for driving without valid insurance and face legal consequences. Moreover, if you renew after a gap of more than 90 days, you will lose your NCB and any add-ons you purchased earlier. Therefore, you should renew your car insurance policy before it expires and avoid hassle or loss.
Conclusion
Renewing your car insurance is essential for a few important reasons. First, it keeps you on the right side of the law, as the government requires it. It further offers protection from any surprises that might happen while driving. And third, it ensures that you are always covered, so you won’t have to worry about huge expenses if a mishap occurs. So, make sure you renew your car insurance on time and keep enjoying the benefits of being covered by a car plan.