5 Signs It’s Time to Review Your Existing Car Insurance
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Home / Car Insurance / 5 Signs It’s Time to Review Your Existing Car Insurance
When did you last review your car insurance policy? If you are not sure, do not worry, you are not alone. Most car owners neglect this vital task until it is too late. It is important to review your car insurance regularly. Whether you have shifted cities, added accessories, or modified your commute, your insurance coverage must be adjusted accordingly.
With almost 60% of Indian vehicle owners underinsured, today may be the ideal time to examine your car insurance policy.
Top 5 Signs When You Should Review Your Car Insurance Policy
A car insurance policy is dynamic, where the IDV reduces by 10% every year as your car depreciates. So, here is the best time to review a car insurance policy to get the most out of your money
When New Updates on Insurance Policies Come
The Government can add new regulations in the Motor Vehicles Act of 1988 anytime, due to which people might have to update themselves with new insurance policies to remain compliant.
Moreover, insurance companies introduce different insurance plans and add-ons with fluctuating rates. You can opt for a better policy by remaining updated with newer plans.
After Major Life Changes
Significant life events, such as relocating to a rural location, marriage, having children, or retirement, will affect your risk profile and, as a result, your car insurance premium. As an example, residing in a lower-risk neighbourhood can reduce your premium.
It is one of the best moments to consider a car insurance policy and look for potential savings or modifications.
A Month Before Your Existing Policy Expires (At Least)
Begin reviewing your car insurance at least one month prior to its expiration date. That way, you have sufficient time to review your existing coverage, compare policies among different insurance companies, and check your car's Insured Declared Value (IDV) to ensure that you are paying the best rate.
Change in Daily Usage or Driving Pattern
A change in your driving habit, such as more mileage, a change to commercial use, or decreased usage with work-from-home, changes your risk profile. Your policy should be reviewed so that it becomes consistent with your new habits to avoid unfair premiums and claim rejections for incorrect usage classification.
Post-Modification
Car owners often modify their cars to enhance their cars look or performance. However, it is also their obligation to update their insurer about these certain changes if they want to receive their deserved claim amount. Some insurers might also refuse claim disbursement for not reporting these modifications.
What Happens If You Don’t Review Your Car Insurance Regularly?
The following is what happens if you do not review your car insurance policy regularly:
Outdated Coverage: Your coverage can fail to account for changes such as vehicle modifications, usage type, or new drivers, so you become underinsured.
Higher Premiums: You can lose discounts or better rates that are available based on a better driving record or less car usage.
Claim Rejections: Claims can be rejected if the insurer determines that there is a mismatch between your current use and the information you have declared.
Lapsed Add-ons: Beneficial add-ons such as zero depreciation or roadside assistance can lapse unless renewed.
Legal Non-compliance: Not updating your insurance information can violate the Motor Vehicles Act, 1988.
Things To Consider Before Reviewing Your Car Insurance Policy
Following is a list of things to consider before deciding on the best time to review a car insurance policy:
Policy Price - Policyholders must review the car insurance market and search for better insurance prices for similar coverage.
Coverage Type - Your car’s IDV or Insured Declared Value decreases over time. This may change your preferences in coverage. Now, reviewing your existing coverage and newer policies in the car insurance market can help you find the best coverage plan that suits your needs.
Budget - Calculate the amount of money you want to spend on car insurance, and then find the best insurance policies that suit you. Blind purchases of unaffordable plans can cause complications later on during the claim process.
Find Discount Offers - Car insurers offer reasonable discounts on their insurance policies periodically. Reviewing your car insurance at the best time to review car insurance can save you some money.
NCB Protection - You can lose your accumulated NCB or No Claim Bonus if you do not renew your car’s insurance within the grace period of about 15-30 days, depending on your insurer. Periodic reviewing of existing policy protects you from this threat.
Final Thoughts
An annual review of the existing insurance policy is generally considered the best time to review the car insurance policy. It allows you to stay compliant with traffic laws and lets you choose the most suitable insurance policy that suits you.
Remember, many insurance companies provide loyalty bonuses and perks to the policyholders if they stay with them for a continuous period. So, make sure to consider it before changing your insurer.
Frequently Asked Questions
What is the best time to review your car insurance policy?
Here is a list of some instances where you must review your car insurance.
- 30 days before the end of the policy
- Annual review
- Once, at the time of major life changes such as retirement or marriage
- When new updates come in the Motor Vehicles Act, 1988
What should I focus on when reviewing my policies?
Once you have researched the market, focus on comparing the insurance price, coverage and insurer reputation and choose the best plan for you.
Can a periodic car insurance review save me money?
Yes, a periodic car insurance review can save you money by identifying eligible discounts, removing unnecessary add-ons, and ensuring your premium matches your current risk profile.
Written by
Nikhila PS
Senior Content Editor
Nikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Reviewed by
Rekhit Singh Kaushal
Senior Director - Motor Underwriting
Rekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
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