Saturday, July 13, 2024

Insurance

Avoid These Mistakes While Getting Your Car Insurance Renewal

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Car insurance is one of the most important policies that everyone should have. It is essential to keep a few things in mind to avoid any problems when you are doing the car insurance renewal process.

The right car insurance policy compensates the policyholder for vehicle loss or damage in exchange for a premium. It covers bodily injuries resulting from an accident involving the insured vehicle. It also covers vehicle damage caused by theft or natural disasters. Renewing a car insurance policy is the most critical aspect of owning one.  To avoid complications during online car insurance renewal, and understand your policy, keep the following points in mind.

1. Policy renewal time:

One should know how to check the car insurance policy’s expiry date. It may help if you continue your car insurance on time. Driving without third-party insurance in India may result in a Rs 2000 fine. If you commit this offence again, you may face a Rs 4000 fine, licence suspension, and imprisonment. A few insurers provide a grace period of 30-90 days to renew the policy if you miss the expiry date deadline. However, the insurer cannot cover your car during this grace period.

2. Update your plan:

You can upgrade to comprehensive coverage when your car insurance is up for renewal. A thorough plan includes more range, such as paying for car damage in the event of an accident. The premium, however, may rise.

3. Appropriate insured declared value (IDV):

The Insured Declared Value is the car’s current market value. It is the maximum sum assured provided by the insurer if the car is stolen or damaged in an accident. The IDV is an essential factor in determining car insurance premiums. A higher IDV corresponds to a higher premium. At the same time, a lower IDV corresponds to a lower premium. It would help if you chose an IDV with adequate coverage and a reasonable premium.

4. Use accumulated no claim bonus (NCB):

A no-claim bonus (* Standard T&C Apply ) is a reward the insurer gives if you do not file a claim for a specified, consecutive period. For five years, it ranges from 20% to 50%. This reward is applied during the online car insurance renewal process. It is an effective way to lower your premium. When renewing your car insurance, make sure to check your eligibility and the value of the rewards.

5. Consider the voluntary deductible:

A voluntary deductible is an amount paid by a policyholder from their claim share. If a policyholder agrees to a higher deductible, the insurance premium may be lower, whereas a low deductible can result in a high insurance premium. A higher deductible makes sense if you have a clean driving record.

6. Examine the garage network:

It is difficult to wait for payment from insurers during an emergency. As a result, check with your insurer about the network of garages to enjoy hassle-free cashless claims. Such information is also available on their website.

7. Choose the right add-ons:

Add-ons protect your insurance policy by providing adequate coverage. Add-ons such as zero depreciation, passenger cover, no-claim bonus protection, roadside assistance, and so on are available (* Standard T&C Apply ).

Advice: Use an online car insurance calculator to evaluate the premium prices based on the required add-ons for your policy.

To summarise:

These steps can help you make an informed decision when renewing your car insurance policy. You can also change insurers if you are unhappy with your current policy. Before switching to a new insurer, compare policies, features, benefits, and prices.

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply

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