Renewing your car insurance on a timely basis is important or your policy will lapse. Additionally, driving your car with an inactive insurance policy can cause serious legal issues. Therefore, one must never forget their car insurance renewal date.
If you do not wish to continue with your existing car insurer, you can switch to another company. Don’t forget that having the basic third-party car insurance cover is mandatory in India and that gives you no choice but to renew your policy on time. If you are clueless about the process, here are some things to keep in mind while renewing your car insurance plan.
- Select the appropriate car insurance plan
It is known that third-party car insurance is mandatory in India. However, it all depends on your requirements. You should know if a basic plan works for you or if you require a comprehensive car insurance plan. Make a note of your needs and budget and make a choice depending on the type of plan you want to go for.
- Understand the market value of your vehicle
When you calculate your car insurance premium during renewal, the depreciation of your car’s value is also considered. To be able to get a better deal with your insurer, you should know the market as well as the depreciated value of your vehicle.
- Opt for necessary add-ons only
When you buy a comprehensive cover, you can also purchase additional covers to customize your existing plan. If you hadn’t opted for any add-ons while purchasing the policy, you can do so during renewal. Look into your list of requirements and purchase the add-ons accordingly. If you buy unnecessary add-ons, you will end up paying a high premium amount and your car insurance policy will most likely overshoot your budget.
- Know about the No-Claim Bonus
For every year that you don’t raise a single claim, your insurance company offers you a certain concession on the premium. This reduces the total premium that you are supposed to pay to the insurance provider. Even if you change your insurer, the accumulated no-claim bonus can be transferred to your new insurance provider.
- Choose voluntary excess during renewal
As a policyholder, you can opt for voluntary excess when renewing your car insurance. What happens under this option is that when you raise a claim in the future, you will pay a pre-decided amount or a percentage of the claim. Opting for a voluntary excess helps reduce your premium amount along with your car insurance renewal costs.
- Go for simple claim settlement
Look for an insurer that is known for completing the process in a quick and hassle-free manner.
- Renew your insurance before it lapses
The most important thing to keep in mind would be renewing your car insurance before its expiry date. In addition, it is illegal to drive a car with a lapsed insurance policy. You can also lose your accumulated no-claim bonus if you do not renew the lapsed policy on time.
- Check if cashless facility is available
Always crosscheck to see if your insurer offers the cashless facility. This feature is quite convenient when you cannot arrange for cash to pay for repair costs. In such instances, you can just have the insurer take your vehicle to a network garage and the former will directly settle the bill for you. You still would have to bear the deductible amount nonetheless.
- Look for car insurance deals online
Make sure to conduct your research before selecting any plan or even renewing your existing plan. You might find a better deal online rather than offline with some research. You also save money as there are no middlemen involved.
Once you understand the above tips, you’re good to go. You can also go online and calculate the premium on various plans with the help of a car insurance premium calculator. To find the best deal, compare car insurance policies online and read through them thoroughly before reaching a conclusion.
