Is your car insurance about to expire? If yes, you have two options- either continue with your existing policy by renewing it or switch to a different policy. Whatever you choose, do not forget that in India, it is mandatory to have a car insurance policy for your four-wheeler vehicle as per the Motor Vehicles Act of 1988. So, you must ensure that your car insurance renewal is done before it expires.
6 Things to Know While Renewing Car Insurance
If you are going through the process of car insurance renewal for the first time, here are six things you should consider:
1. Decide which type of car insurance you need
You can choose between a third-party car insurance and a comprehensive car insurance plan. Though a third-party car insurance is compulsory in India, you must remember that it only covers third-party liabilities and not own damages. So, before you opt for a car insurance renewal, it is quite crucial to decide which type of plan you want to go for, as per your needs.
2. Check your No Claim Bonus
If you had a claim-free year in your existing car insurance policy, your insurer would have offered you a No Claim Bonus (NCB). You can use this amount to get a reduction in your car insurance renewal premium. And if you are planning to switch to a different insurer, you can transfer your NCB reward to your new car insurance provider.
3. Know the market value of your car
It is important to know the market value of your car after calculating depreciation as it is considered while computing your car insurance premium. Knowing your car’s depreciation and market value will help you negotiate the premium with your insurance provider.
4. Only buy the add-ons that are necessary
You can opt to buy add-on covers to enhance your car insurance coverage. During car insurance renewal, insurance providers will bombard you with various add-on covers, however, you need not give in to their sales gimmicks. You must buy add-on covers for your online car insurance policy based on your needs and budget.
5. Check your car’s IDV
IDV stands for Insured Declared Value. It is the sum that your car is insured for, and this amount forms the basis of all claim settlements in case your car is stolen or damaged beyond repair due to an accident. You must ensure that your insurance policy quotes the right IDV for your vehicle and avoid compromising on the IDV for a lower premium.
6. Check the list of network garages
Before you choose your car insurance policy, ask the insurance provider for the list of network garages associated with them. You can avail cashless claim facilities at these garages, where the insurance provider will directly settle the bill with the garage. So, check if any insurance provider is associated with your preferred garage, and then buy an online car insurance accordingly.
Buying an insurance policy is also a major investment decision as it diversifies your portfolio. And, now that you know about the things you must consider while renewing your car insurance policy, make sure that you complete your car insurance renewal well in advance to avoid penalties. You can now use the online facilities to do so. Buying a car insurance online is not only quicker but also affordable as compared to buying it offline.
You can also use the car insurance premium calculators to compare the premium quotes offered by various insurance providers. And while you’re deciding on how to renew your car insurance policy, ensure you do your research about the various four-wheeler insurance plans available in the market. It is necessary to make an informed decision before you invest your money.
