Renewing car insurance can be a complicated process for some people. The process involves a lot of documents and paperwork, and switching between different insurance providers can also be confusing. However, some easy steps can make your car insurance renewal a hassle-free process. Below is a list of car insurance renewal tips to make your experience easier.
Review All Options: When the time comes to renew your car insurance, you might be tempted to continue with your existing insurance provider for convenience. However, you should take a look at all insurance offerings from different insurance providers and choose one that best fits your needs.
Compare Online Prices: While reviewing different car insurance options, you can also take a look at the prices offered by different companies online. You may find a plan to your liking that is available at cheaper rates in another company.
Pick the Right IDV: An IDV (Insured Declared Value) is determined based on the current market value of your car’s price. IDV is the total sum you can receive as your claim with the insurance provider in case of theft or irreplaceable damage to your car. Thus, IDV plays an important role in determining the premium for your four-wheeler insurance. Do not settle for a lower IDV just to get lower insurance premiums as it might bring down your insurance claim amount.
Claim Your NCB Bonus: 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 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 discount on the premium amount. Even if you are switching insurance providers, you can get an NCB certificate from your previous insurance provider.
Voluntary Deductions: Some insurance providers offer the facility to opt for voluntary deductions during car insurance renewal. As per this option, a policyholder has to pay a percentage or a fixed amount during any claim settlements. A key benefit of choosing to keep voluntary deductions is that the insurance premium gets reduced. Voluntary deductions also help in reducing renewal costs.
Renew Policy Before Expiration: Do not wait till the last minute for car policy renewal. As per the Motor Vehicles Act 1988, driving a car without valid insurance can be punishable by law. If you fail to renew your insurance in time, you will also lose out on your NCB benefit.
Select the Required Add-On Covers: A lot of insurance providers offer additional covers on top of their four-wheeler insurance policy. Even if you choose not to buy any add-ons during your initial insurance policy term, 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, roadside assistance, etc.
Install an Anti-Theft Device: If you have an anti-theft device on your vehicle, you may be eligible for a discount on your insurance policy renewal. This is because anti-theft devices reduce the risk of theft significantly. However, when buying an anti-theft device, make sure you have one that is approved by the Automotive Research Association of India (ARAI), to be eligible for the discount.
Network of Cashless Garages: Most reputed car insurance companies these days provide the facility of cashless garages. In the case of accidental damage, you can take your car to one of the garages in the insurance company’s network to get it fixed. When renewing your policy, you should aim to choose an insurance provider that has a large network of cashless garages around the country, so you can get your car fixed anywhere.
Check Out Comprehensive Car Insurance Plans: While having third-party four-wheeler insurance for your car is mandatory by law, other insurance plans are available in the market that offer a comprehensive cover. These comprehensive car insurance plans not only cover third-party obligations but also offer extensive coverage for your vehicle in case of any accidents or unexpected damage. If your existing four-wheeler insurance plan only offers third-party coverage, you can switch plans at the time of renewal to get all-inclusive coverage.
The car insurance renewal tips given above will surely make your renewal experience smoother. If you haven’t purchased a comprehensive insurance plan yet, you should consider getting one for enhanced protection and coverage. Not only does a comprehensive insurance plan provide the features of third-party cover, but also offers coverage for your own car. You can take a look at the various car insurance plans available at Finserv MARKETS and choose one that best fits your needs.
The easiest way to renew your car insurance policy is through online renewal. Choose an appropriate insurance plan after checking out all the options and follow the steps mentioned on the insurance website to renew your plan.
Yes, you have to mandatorily renew your car insurance. Driving without valid or active car insurance is a punishable offence, as per the Motor Vehicles Act, 1988. Ideally, you should renew your car insurance a few days before your existing policy expires.
If you renew your car insurance after it has expired, you may lose out on any NCB bonus you may have accumulated over the previous insurance term.
No, it is not compulsory to buy car insurance from your car dealer. You can choose to buy car insurance online or directly from an insurance agent.
No, you cannot drive your car without insurance, as the Motor Vehicles Act,1988, makes it mandatory for all vehicle owners to have third-party insurance cover.