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Time to renew your car insurance policy? We’re here to help!
Just the way regular servicing keeps your car up and running, timely renewal of its insurance policy will keep you at peace. With various aspects to consider during renewal, it may sound a lot like going to a war but a little bit of research and comparing the available options will secure you a renewal deal that’s worth the effort.
If your current insurer has taken your loyalty for granted, it’s time for a change. Consider switching insurance company based on reviews and the benefits offered.
Re-evaluate Insured Declared Value considering your car’s age to get suitably compensated during total loss or theft. Neither too less nor too high – just the right amount!
Any expensive accessories recently added to your car, like that expensive music system or a CNG kit needs a cover too. Get them insured during renewals with appropriate value.
If you were not aware how add-ons can help you during claims, this is the time. If your car is less than 5 years old, consider covers like Zero Depreciation or Engine Protector or Return to Invoice.
Your cautious driving, year after year, has earned you a No Claim Bonus. Remember, this bonus can reduce your premium by as much as 50%. Be sure to apply it at the time of renewal.
You’ve been renewing insurance each year without much homework. Be different this time. With a little bit of research, you can compare benefits offered vis-à-vis premium to get the best deal.
Here is what you need to know.
If you only have third-party plan then, you need to consider getting a comprehensive policy. This will cover you against heavy expenses of repairing your car in case of an accident.
If you have already got a comprehensive plan then, check the Insured Declared Value of your vehicle against the premium. That will help you know that you have got the best price.
This makes a huge different. If you haven’t checked the claims ratio of your previous insurer, this is the time to rectify it. Also, don’t forget to look for the cashless garages in your area.
Check if you have you got all the discounts that you are eligible for. A deductible indicates the amount you will have to pay every time before claim. If your policy includes it, ensure that it fits your budget.
What documents do I need to renew my policy?
If you are renewing your policy offline, then you require Registration Certificate (RC) copy and if you want to avail NCB, then you also need the NCB retention letter.
However, for car insurance renewal online, you do not require to submit any documents. You can simply renew your policy directly online by providing inputs such as
Since, the insurance company already has your documents, you don’t need any additional documents.
Do I get discounts for timely car insurance renewal online?
This entirely depends from insurer-to-insurer. Sometimes, insurance companies reward prompt payments with a maximum discount that is levied on your policy at renewal. They value customer loyalty and don’t hesitate to reward those who renew their policies before it expires.
It can be as high as even 50%-60%. So if you let your policy expire, there are high chances of you losing this discount!
What if my current policy is already expired? Can I still renew it?
You can still renew your policy after your vehicle inspection is complete. And seeing the condition of your car, if it is recommended by the survey team, then your vehicle insurance will be renewed and you will be provided coverage.
Car insurance companies have different terms and conditions on their policies. Some even offer a grace period to pay the premium for renewing the policy. Always confirm you're your insurer if you have a grace period. Be aware of the late fees and charges that you have to pay for using the grace period.
Can I renew my car insurance with another insurance company?
Yes, you can renew your car insurance with another insurance company without any hassles.
Would I get No-Claim Bonus if I renew my policy once it has lapsed?
Post the grace period (which happens to be 90 days specially allowed for renewal of an expired policy), the No Claims Bonus (NCB) discount is snatched out! In fact, it could be such a huge loss especially if you haven’t made a claim in the past 3 – 4 years.
Think about it! You took so much effort to save up this discount by driving cautiously. Would you want to let it go waste and start all over again? No, right?
You not only pose a threat to your vehicle that you purchased with your hard-earned money but also may end up losing a lot in terms of premium.
Will my No-Claim Bonus (NCB) get transferred if I want to change my insurer on renewal?
If you switch insurers before the end of the year, then if you haven’t made any claim, you won’t receive any NCB for that year. However, once you complete an entire claim-free year, then on renewal, if you change the insurer, you can still avail the NCB.
All you have to do is produce proof of the NCB earned by way of received renewal notice from the current insurer. If you haven’t received it, you can call up the insurer and ask them to send it to you.
Another way of dealing with this is producing your original, expiring policy along with a certification that you have lodged for no claims on the expiring policy.
For this, the proof can be in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer.
Will my Insured Declared Value (IDV) change at the time of car insurance renewal?
Yes it will be lowered by approximately 5 – 10%.
Insured Declared Value is the maximum Sum Assured that is fixed by the insurance company. It is provided on theft or total loss of vehicle. In short, IDV is the current market value of the vehicle and is compensated to the policyholder in case of total loss of vehicle. The IDV is calculated as manufacturer’s listed selling price minus the depreciation. Since the value of the vehicle gets depreciated, year-on-year basis, the IDV also reduces.
This is the depreciation schedule:
|Age Of Vehicle||Depreciation % For Calculating IDV|
|Upto 6 Months||5%|
|6 Months to 1 Year||15%|
|1 - 2 Years||20%|
|2 - 3 Years||30%|
|3 - 4 Years||40%|
|4 - 5 Years||50%|
How to renew car insurance online with Coverfox?
You wouldn’t have to worry about expired policies anymore! With the right channel like Coverfox.com, you would get timely reminders in the form of text messages and e-mails for each renewal.
And, since your data such as vehicle details, policy details and personal details is already captured with the company online, you don’t have to worry about filling your details online at each renewal!
If at all, you didn’t purchase your insurance policy with Coverfox in the previous year, you can still renew it with Coverfox. All you have to do is fill in your details such as vehicle registration RTO, car model and car number and expired policy details.