We all know the condition of the Indian roads as most of us travel long distances quite often. In such a situation, the only thing that could safeguard your vehicle from accidents, damage, or loss is a car policy. Having car insurance is also mandatory under the Motor Vehicles Act of 1988.
When purchasing a new car, you can either buy the policy in-person from the auto dealer or buy it online from a trusted insurance provider.
But what happens after your existing policy expires? Well, in that case, you must renew your insurance policy either from the same provider or look for another insurance provider with affordable premium rates.
But before we dive deep into the topic of online car insurance renewal, let us first understand what a car insurance plan is.
What Is A Car Insurance Plan?
A car insurance policy is nothing but an annual protection plan that needs to be renewed periodically. With an insurance, you are rest assured that your vehicle is financially protected against any road mishaps, theft, and loss incurred due to human-made or natural disasters. Also, most insurance policies cover you against third-party liabilities.
No matter which plan you decide to choose, it is essential that you keep renewing the policy when or before it expires.
When it comes to policy renewal, most people look for ways in which they can save some money. In this article, we will be discussing a few tips that will allow you to save more while renewing your car insurance policy.
Save Money on Your Car Insurance Renewal
The following seven tips will help you save some money when seeking car insurance renewal –
Compare Different Car Insurance Policies Online
When purchasing an insurance plan for the first time, it is advisable to compare different policies online. Likewise, when renewing your policy, it wouldn’t hurt to browse for new options and compare them to your existing policy online.
Multiple websites act as an ideal platform for comparing car insurance online. All you have to do is visit the site of your choice and browse through different plans. Shortlist the plans you would want to avail and then compare them to choose a plan that is most suitable for your requirements.
Generally, the best insurance plan is the one that provides adequate protection at affordable premium rates.
Calculate The Correct IDV
IDV or the Insured Declared Value, is the amount assured on your car insurance policy. Usually, the IDV is calculated after adjusting the market value of your car and deducting the depreciation. The IDV is the value that you receive from your insurance provider in case your vehicle is completely damaged and cannot be repaired, or it is stolen.
The IDV amount is directly proportional to the premium amount. Hence, the higher the IDV amount, the higher your premium amount will be.
It is highly advisable to compute the IDV amount before you purchase the policy online. Look for an insurance provider that provides you with the calculated IDV amount, so that you can save money and do not have to pay high premium rates.
Use The No Claim Bonus
The No Claim Bonus or the NCB can be utilised at the time of policy renewal. This option entitles you discounts on your premium amount at the time of renewal of the policy. However, to avail this benefit, make sure that you do not file a single claim during your policy term. With the No Claim Bonus, you can get up to 50% claim-free renewal. Thus, making it a good option for availing discounts on the premium at the time of car insurance renewal.
Choose Higher Limit Of Voluntary Deductible
With every car plan, you have the flexibility of choosing the voluntary deductible limit. In other words, it is the amount that you (the policyholder) will have to bear from your savings. So, when you make a claim, you pay the voluntary deductible limit, and your insurance provider will pay the remaining amount. Also, it is noteworthy that with a voluntary deductible, you can avail discounts on your premium amount.
Become Member Of Automobile Association Of India Or Western India Automobile Association
In case you hold membership in either the Automobile Association of India or the Western India Automobile Association, then your insurance provider will offer you discounts on the premium amount.
Install Anti-Theft Device
You can reduce the premium amount rates by installing a safety device in your vehicle. By improving the security of the car with an anti-theft device, you can avail discounts on premium rates. It is because now, your car is less prone to theft.
Renew Car Insurance On Time
You will miss out on availing the No Claim Bonus if you do not renew your car insurance on time. For most insurance providers, the policy becomes invalid if you fail to renew it within 90 days of the expiry, resulting which you will lose out on the No Claim Bonus as well.
A Final Thought
Having a car policy when you purchase a new car is not sufficient. You have to make sure that you renew insurance online before or when it expires. Also, with the above tips, you can make the renewal purchase economical.
In case you are looking for a policy renewal, then get in touch with us at Finserv MARKETS. With our Car Insurance Renewal at Finserv MARKETS, you can benefit from features like 24x7 assistance, claim settlement wallet, cash-free servicing, no third-party involvement, and much more.
So, keep your car safe with four wheeler insurance plans offered at affordable premium rates at Finserv MARKETS, today!
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!