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What should I look for when renewing car insurance?

By Finserv MARKETS - Jul 25,2019
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Important Things To Remember While Renewing Car Insurance Online

Is your car insurance plan nearing its expiry? Are you planning to renew your car insurance soon or switch plans with a new insurance provider? Well, before you take the plunge, make sure you go through the following important tips for car insurance renewal-

1.Look out for comprehensive insurance coverage

While having a third-party four-wheeler insurance for your car is mandatory by law, there are other insurance plans available in the market that offer a comprehensive cover. These comprehensive plans not only cover third-party obligations but also offer extensive coverage for your vehicle in case of any catastrophic events. If your existing four wheeler insurance plan only offers third-party coverage, you can switch the plans at the time of renewal to get an all-inclusive coverage.

2.Pick the right IDV

An IDV (Insured Declared Value) is determined based on the current market value of your car’s price. In case of theft or irreplaceable damage to your car, IDV is the total sum you can receive as your claim with the insurance provider. Thus, IDV plays an important role in determining the premium for your four-wheeler insurance. Higher the IDV, higher the car insurance premium amount and vice versa.

3.Choose from the add-ons offered

A lot of insurance providers offer attractive add-ons on their four-wheeler insurance policy. These add-ons get updated from time to time. Hence, even if you have not enjoyed any benefits of add-ons on your existing car insurance policy, you can avail them at the time of renewal. Some of the attractive add-ons offered on four-wheeler insurance include zero depreciation, total cover, no claim bonus retention cover, accessories cover, invoice protection, roadside assistance, etc.

4.Claim an NCB

NCB (No-Claim Bonus) is a discount rewarded on the premium at the time of renewal of car insurance. Insurance providers offer an NCB facility only when the policyholder has not made a single claim during the previous policy term. For each year, where you make a claim-free renewable, you become eligible for a 5% discount on the premium amount. Thus, as a policyholder, you can avail anything between 30% to 50% NCB on your car insurance.

5.Voluntary deductions

When you renew car insurance online, some insurance providers offer the facility to opt for voluntary deductions. As per this facility, a policyholder can pay a percentage or a fixed amount during any fixed claim settlement. A key benefit of this facility is that by doing thus, the insurance premium gets considerably reduced. Voluntary deductions also help in reducing the renewal costs.

6.Some Final Thoughts

Driving a car without a four-wheeler insurance is a punishable offense. Hence, it is extremely important that you renew your policy as soon as it nears its expiry. However, at the time of renewal, make sure you take into consideration the above-mentioned points so that you can enjoy maximum benefits on your renewed four-wheeler insurance.

To know more about the perks of renewing your car insurance, get in touch with us at Finserv MARKETS. Our executives can help answer all your queries related to four-wheeler insurance. Browse through the Four-wheeler insurance plans for comprehensive and third party coverage. Apply for Car Insurance plans today and claim benefits such as cash-free servicing, no-claim bonus, and claim settlements wallets on your car insurance.

To know more on car insurance in depth, you can check out these blogs:

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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