Here are a few points to consider before renewing your car insurance plan.
Renewing a car insurance policy is not only important, but also mandatory in India as per the Motor Vehicles Act, 1988. Whether you have a third party or a comprehensive car insurance plan, it is important to renew both the policies for better protection. If you are planning to renew your car insurance, here are a few points to keep in mind.
- Research Online: You can search for multiple policies online. There are plenty of insurers and aggregators which sell car insurance policies online. The online process is fast, convenient, paperless and hassle free. The entire process can be completed within a few minutes and the policy is delivered straight into your inbox.
Also, you can compare multiple policies on a single page and select the best quote available. Find out the amount of coverage that you need along with pre and post sales services. Check if there are options to purchase riders. In addition, look for reviews from existing policyholders. In short, purchasing a car insurance policy online is not only cheap, but also one of the best method available.
- Policy Type: Ensure that you select the correct policy. You can opt for the mandatory third-party car insurance policy or select a comprehensive car insurance policy. Third party car insurance policy is mandatory by law (Motor Vehicles Act, 1988). It provides cover for third-party liabilities only. A comprehensive car insurance policy covers third-party as well as own damage. It is advisable to purchase a comprehensive car insurance plan.
Add-ons - Add-ons extend the scope of cover provided by a comprehensive car insurance policy. Some of the must have add-ons are:
- Zero Depreciation
- Return to Invoice
- Engine Protection
- Roadside Assistance
- No Claim Bonus
- Loss of Personal Belongings
No Claim Bonus: You are eligible for an NCB in case you do not make a claim for a particular year. NCB is an incremental benefit, it can go up to 50% over a period of five consecutive years. Ensure that your policy has NCB facility. Also, NCB is transferable even if you switch your insurance company.
Insured Declared Value: IDV is the current market value of your car’s price. IDV is the maximum amount you will receive from your insurance company in case your vehicle is completely destroyed or stolen. IDV is the most important factor which determines the premium of your policy. It is important to get a car insurance policy with the right IDV.
- Discount: You are eligible for a discount on car insurance premium if you have installed an anti-theft device inside your car. Insurers offer a discount as long as the anti-theft device is certified by the Automotive Research Association of India.
- Voluntary Deductible: Opting for a voluntary deductible at the time of policy renewal will lower your premium. Deductible is a minimum amount you are required to pay in case of a claim. There is voluntary and mandatory deductible. You can select the amount for voluntary deduction.
- Cashless Facility: Ensure that your insurer has a wide network of cashless garages across India, especially around your place of residence. The cost of repairs can be expensive, and hence, it is advisable to visit a cashless garage.
Conclusion
It is advisable to renew your car insurance in advance before expiry. If you fail to renew your car insurance policy before the expiry date, your car will be subject to inspection. This will lead to increased premium and the NCB will rest if you do not renew your policy before 90 days after its expiry.
