Car insurance expiring soon? Worried about renewal? Unable to keep up with all the things you should remember? Don’t worry, for you are in the right place.
Everyone knows that car insurance, at a third party insurance is compulsory in India. You cannot even take your car out of the car dealership without insurance ready. However, if you are a first-time car owner, the first year of owning a car must have helped you figure out what you need from your car insurance.
In this blog, we have discussed the things you should remember while renewing your car insurance and some tips that will help you during the process.
Things You Should Remember While Renewing Your Car Insurance
You can choose to make changes to your car insurance policy while renewing it. Here is a list of things you should remember during the process.
Type Of Plan
On renewing your insurance, you have the chance to choose between comprehensive insurance and third party insurance. It is crucial to know that third party insurance is compulsory in India. Third party insurance has a lower premium but only provides financial cover for third-party damages. That is why a comprehensive insurance policy is always recommended as it covers both the legal requirements and gives financial cover for the car owner as well. However, it does have a higher premium than a third party insurance policy.
Therefore, evaluate your needs and decide on the plan accordingly. Remember, third party insurance may cover third party damage, but it won’t cover damages to your car and injuries. You will have to pay for those out of your pocket, which can be quite expensive.
Compulsory & Voluntary Deductibles
Deductibles are the amount the insured has to pay during a claim. This is done to ensure that policyholders don’t make frequent claims. There are two types of deductibles- compulsory and voluntary. The insurer charges a compulsory deductible as a fee, while voluntary deductibles are the amount the policyholder chooses not to claim. This means that during a claim due to an accident or loss, the policyholder may pay for a certain portion of the repair themselves instead of claiming it from the insurer.
You can choose a voluntary deductible that will reduce your premium. However, remember it may also reduce your claim amount.
Even though a comprehensive car insurance policy covers many things, insurance providers offer plenty of useful add-ons. These add-ons can enhance your insurance coverage. Of course, you do not have to buy them, but it’s still worth taking a look at. Some of the more popular add-ons include zero depreciation cover, no-claim bonus protection, roadside emergency assistance, engine protection cover, etc. To enable any of this cover, you will have to pay a small amount above your premium.
IDV, or insure declared value, is one of the most significant parts of your insurance policy. It refers to the value of your car fixed by the insurer. This means, if your car is stolen or there is a total loss of the vehicle, the insurer will pay your claim based on IDV.
Factors that affect IDV include car type and model, depreciation, purchase location, and accessories. Carefully check the IDV of your car while renewing the insurance. Ensure that it is the right amount. That will help you enjoy the benefits of your insurance policy to the fullest.
Network Of Cashless Garages
Talk to your insurer about their network of cashless garages. Get a list of their network. Cashless garages have a tie-up with the insurer and allow you to avail of the cashless cover. This means you won’t have to pay any amount for the expenses incurred. Your insurance will handle the cost directly, and you won’t have to go through the hassle of getting a reimbursement.
NCB, or no-claim bonus, is popularly considered a prize for being a safe driver. It is a bonus that can be availed when you don’t claim your policy during a policy year. The discount/bonus increases with each claim-free year. This amount can be deducted from your premium. Therefore, check your no-claim bonus before renewing your policy. If you plan on changing your insurer, you can also transfer the no-claim bonus to your new insurer.
Tips To Follow
Now that you know the things you should remember while renewing your car insurance, here are some tips that will help you during the process.
- Renew your policy on time. Always. Not renewing your policy on time can have many consequences, such as losing accumulated policy benefits, getting fined, in case you are driving with an expired policy, etc.
- Always compare policies while renewing them. While it is definitely easier to renew your existing ones, you should research and see if you can get better policy terms with other insurance providers.
- Use this time to renew/update any personal details. For example, if you have shifted your home, you can also update your new address while renewing the policy.
- Check the claim history of the insurer. That will help you understand how their claim process works.
The renewal process of car insurance is super easy. You can purchase and renew it online by following simple steps.
- Go to your insurance provider’s website and choose the ‘renew policy’ option.
- Enter the details of the policy. Select the add-ons you want to add to your policy.
- Pay your premium online.
- You will receive an email on your registered email id with the renewed policy documents.
Car insurance is crucial for safeguarding your car and your peace of mind. With a good car insurance policy, you won’t have to worry about the financial strain an unforeseen accident may bring. Remember the factors and the tips we have mentioned in this blog and enjoy the renewal process.
The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.