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A 7-Point Checklist for Renewing Your Car Insurance

By Bhavesh Mehta - Jan 6,2020
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A 7-Point Checklist for Renewing your Car Insurance

In the event that a customer is unhappy with their current car insurer, he or she can always opt for any other insurer while renewing their car insurance. One can switch car insurance companies at the time of renewal by checking out the lowest premium quotes and comprehensive benefits available in the market.

Possible reasons for changing the insurer could be:

  • Same policy coverage available at a lower premium
  • Better coverage available at a lower premium
  • Poor claim experience with the existing insurer
  • Better add-on covers available from other insurers with a nominal increase in premium

Critical items to keep in mind while renewing the insurance of your vehicle

  • Expiry Date

The ideal time to start a comparative search and policy renewal process is around 60 days before the policy expiry date. A lapsed car policy requires the vehicle to be inspected by the authorized surveyor appointed by the insurer. Also, there is a possibility that an insurance company can ask for additional premiums for a break-in car insurance policy (that is, in the case when a policy expires)

  • Add-On Covers 

It is important to explore all add-on coverage available like zero depreciation, engine protector cover, invoice protection, 24*7 roadside assistance, covering consumables, loss of keys, etc. There might be some add-on coverage which you may have to pay a nominal amount for and some which do not need to be paid for. You can opt for the add-on covers mentioned and much more with the Bajaj Allianz Car Insurance policy, available on Finserv MARKETS.

  • Shop Around

Before renewal, it is advised that the customer should compare car insurance premiums and coverage offered by different insurers. With easy access to comparison charts online, this will hardly take up any time. You can buy car insurance online with optimum coverage on Finserv MARKETS.

  • Documents

The insurance company will need your renewal documents to know your claim history and also calculate the NCB (No-Claim Bonus). Important documents include the registration copy, previous policy copy, etc. If you do not want to get caught up in an extensive documentation process, buy the Bajaj Allianz Car Insurance policy on the Finserv MARKETS App. It is convenient, easy-to-use and you can pay through the secure and speedy UPI payment medium. With the app, premiums payments are a breeze and you don’t have to run from pillar to post for claim settlement, all information related to the car insurance policy will be available on your fingertips.

  • No Claim Bonus 

If there are no claims in a policy year, the insured is eligible for a No Claim Bonus. The NCB discount is generally applicable on the Own Damage (OD) premium, which reduces the overall premium. The Own Damage cover is a necessity which insures you against natural calamities like floods, earthquakes and man-made disasters like riots.

  • Market Value of Car 

This has to be calculated on the basis of the market value of the car. Sum insured in the policy is termed as the Insured Declared Value (IDV) which needs to be ascertained as it has an impact on the premium. A car depreciates every year as per the depreciation matrix and thus the premium changes.

  • Policy wordings 

Opting for the lowest premium available is not always the best choice. It is important to read the fine line of the detailed coverage of the policy, including clauses at the time of insurance renewal. If you are not thoroughly apprised of all possible terms and clauses, this can lead to misunderstandings and disappointment when the claim is repudiated. Hence, you should do an online car Insurance comparison to understand, to the fullest extent, what’s covered and not covered to make an informed decision.

Things to consider while changing the insurer

  • The Policy 

Third-party car insurance cover is mandatory for all vehicles plying on Indian roads. However, a third-party car insurance is only suitable for vehicles over 15 years. If you have bought a new vehicle, it is advisable to protect it with a comprehensive car insurance plan. Your focus should be on having an adequate sum insured which is sufficient to take care of the financial burden in case of damage or theft.

  • Claim Settlement 

The claim settlement ratio and the reputation of the company is an important factor while changing the insurer. Even if the premium is low, a tedious claims process is not the ideal situation to be in. The insurance company should have a good claim settlement ratio and a good network of garages for cashless claims. With car insurance policy bought through Finserv MARKETS, you get access to a network of over 4000 garages with cashless claims facility.

If done objectively and with proper planning, switching the insurer while renewing your car insurance policy could be a fulfilling exercise. It could lead to a higher sum insured at a lower premium and could help you get better overall coverage for your vehicle.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522