Did you miss out on your car insurance renewal? Well, that’s a scenario that a quite a few policyholders find themselves in. It could be either due to sheer negligence or you being occupied with a lot of work. Either way, it is important to renew car insurance at the earliest, so that you are not vulnerable to financial hazards and other consequences that come along.
If you wish to renew car insurance online, it is an easy enough affair. However, being aware of a few aspects of a car insurance policy will help you pick up a policy that better suits your needs or budget. Here are a few points that you must consider before the policy renewal.
Type of Plan:
You can either buy a third-party liability policy or a comprehensive plan during the policy renewal. Each of them caters to different needs. While a third-party policy is lighter on the pockets, it offers minimal coverage. A comprehensive plan, on the other hand, offers you with a greater deal of coverage including own car damage coverage but at slightly higher premiums. You must decide which policy would better fit your needs and then choose the same.
Tip: For your own car, Comprehensive Car Insurance Policy is always a better deal, else all damages for your vehicle would pinch quite a lot!
While it is not mandatory to buy an add-on for your policy, it is worth taking a look at the different ones on offer. By paying a small premium, you can secure a much better and wider coverage for your car with add-ons. Some of the most popular ones include Zero Depreciation cover, NCB cover, Invoice Protection cover and Engine Protect cover.
Tip: Opting for a zero-depreciation cover for your own vehicle is a must-have, even if it costs a little higher. Also, for those residing in areas that are prone to water-logging must opt for Engine Protect Cover.
Check network of cashless garages
Before buying the policy, you can reach out to the insurer to find out the list of network garages. Should you visit these garages, you can avail cashless benefits where the insurer will directly pay the repair bill to the garage.
Tip: Check which insurer is tied up with your preferred garage and then buy the policy of that company. That would save you a lot of hassles.
IDV in insurance means: The insured declared value (IDV) of the car is perhaps the single most important factor that can affect your policy. It is important to get a policy with the right IDV so as to enjoy the benefits of the policy later on.
Tip: In order to lower your car insurance premium, your IDV should not be compromised.
A deductible is a minimum amount that a policyholder must pay during the claims. Insurers usually have a mandatory deductible and a voluntary deductible. This ensures that false or fake claims aren’t as frequent as they used to be.
Tip: Opting for a voluntary deductible at the time of policy issuance might be helpful to lower your premium but it can also reduce your claim amount. Thus, choose wisely.
No Claim Bonus or NCB:
If you are to renew expired car insurance, NCB can be the difference between an affordable and a not so affordable policy. For every year (maximum five years) that you do not claim your policy, you are entitled to discounts. It starts at 20% for the first year and is up to 50% for the fifth year.
Tip: NCB applies to the owner and not the vehicle. Remember to check your NCB for every renewal, even if you choose to port your plan to another insurer.
The claims history of an insurer can be helpful to decide whether you should buy the policy from them. A hassle-free and quick procedure is what you should be looking at. You can do a quick research online to find out how easy or difficult it is to deal with an insurer when it comes to claims or other issues in general.
Tip: Cashless Car Insurance claim procedure is seamless and quick.
By installing a security device on your vehicle, you not only increase its security but also can reduce the premium prices. The only thing that you need to be careful about is the type of devices that you install. The ARAI or Automotive Research Association of India recommends a list of devices. Should you install any of them, you can avail these discounts.
Tip: Anti-theft devices in your car can lower your car insurance premium amount. Check with your insurer regarding the same.
Lapses in your policy renewal might prove to be expensive as NCB would lapse and survey needs to be done, other than the fact that it is mandatory to have a valid car insurance policy to ply your vehicle in the Indian roads.
Tip: You may choose to go for auto-renewals or set reminders to check quotes on every renewal so that your car insurance renewal becomes quite hassle-free.
Compare Online Quotes:
You can renew car insurance online, which is not only quicker but also more affordable. You can ask insurers for policy quotes before deciding whether you wish to buy the policy. Individuals who strive for a cheaper policy, will find this step particularly useful.
Tip: Remember to compare apples to apples and not apples to oranges. Comparing of quotes is important with the underlying benefits in mind.
Not having a policy can hurt your finances very badly in the case of an incident. It is recommended to always have a policy and renew it on time. Using the above tips, you can secure a good policy when you renew car insurance online.
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