Car Insurance Renewal Tips & Advice

1. Know Your Needs from the Car Insurance Plan
 
The first step when renewing your car insurance plan is to know your requirements. Keep in mind that your car is a year older, and may not be in the condition it was a year ago. Basically, two types of insurance vehicle are available online. These are:-
 
 Comprehensive Plans – These car insurance plans usually cover:
 – Theft
 – Personal accident coverage
 – Damage to Vehicle
 
You can also opt for additional benefits under such comprehensive plans. Few of the popular additional benefits and coverage you can get: –
 
  •  Zero Depreciation Cover – Almost all the car insurance policies deduct depreciation on replaced parts, but under zero depreciation cover, the vehicle insurance company waives off the depreciation on such replaced parts.
  •  Own Damage Premium – Own Damage Premium (ODP) is the amount of premium you pay to get an insurance cover equal to the Insured Declared Value (IDV). The Own Damage Premium insures your car against losses caused by events that are beyond your control. The amount you will have to pay for Own Damage Premium will depend on your car’s model, cubic capacity of the engine, etc.
  • Personal Accident Cover – The Personal Accident Cover provides financial safety against bodily harm to you. The cover provides protection against unforeseen events that can cause permanent disability and even death.

 

Third Party Insurance – This usually covers:
Bodily injury or death of a third party
Damage to the property of a third party
Bear in mind that third Party Insurance plans don’t provide any add-on benefits, and are best for those who are just looking for a basic car insurance plan to comply with the Motor Vehicles Act.
 
2. Have a Budget
Have a pre-planned budget in your mind when you are renewing your car insurance policy. You can opt for third-party insurance which provides coverage against third party property damage and bodily injury or death of a third party, or you can consider an affordably priced car insurance plan, but do factor in the benefits provided by the plan. If you happened to have a higher budget for car insurance renewal, you can always opt for comprehensive plans which provide cover against theft, damage to the vehicles, etc.
 
3. Compare Car Insurance Quotes Online
A big advantage you get when you renew your car insurance policy online is the ease of comparing. So, it is advisable that you use this benefit to your advantage. Look for insurance plans that cater to your needs, and compare the shortlisted car insurance quotes online. Most insurance companies allow you to “request a quote” by entering your vehicle details. This will give you a probable premium for your policy. Insurance aggregators also allow you to compare policies of various companies. Use this feature to arrive at a decision.
 
4. Look for a Car Insurance Policy with Wide Range of Network Garages
Once you have a shortlist of the car insurance plans you intend to choose from, check if your preferred garages and service centers are included in their list of network garages. If you happen to go to a garage or service center which is not included in your insurer’s provider network, it might cost you more, and the claim may take more time to process as well.
 
5. Shop from a Reputed Insurance Provider
When you are renewing your car insurance policy, ensure that the provider is reliable and has a respectable position in the market. You can also check their claim settlement ratios and read reviews online. All this will help you make an informed decision. However, in case you are renewing your policy from an agent website, make sure that the agent is a licensed one.
 
6. Check the Features
Before you renew your car insurance policy, make sure that you have gone through its features. The policy might have a feature that you might not want any more, or wouldn’t like to have in the first place. For example, the policy might have personal accident cover of ?10 Lakhs, for which you might be paying extra premium. If you already happen to have personal accident insurance, you can remove this clause and pay less for your car insurance. Road Side Assistance (RSA) is another example of it. Road Side Assistance is usually provided by the car’s manufacturer, so you can skip RSA cover to lower your premium.
 
7. Don’t Let Your Car Policy Expire
Do not wait for your car insurance to expire before you decide to renew it. Always renew your car insurance at least 45 days in advance. This will ensure that that if there is a price hike in that period, your price is locked and you won’t have to pay the hiked amount.
 
8 No Claim Bonus
No Claim Bonus is a reward given to the policy holder if no claims have been made in the preceding policy year. If you are eligible for No Claims Bonus (NCB), don’t forget to claim it even if you are changing insurance provider. NCB will be deducted from your overall premium and you will end up paying lesser premium. Accumulation of No Claim Bonus can decrease the premium amount by up to 50 per cent.
 
9. Always Read the Fine Print
Do not blindly opt for the cheapest policy available. Go through your policy in detail, and understand how it will cover you under different circumstances. For example, will the policy provide cover if someone else was driving your car when it met an accident? If you are renewing your policy through an aggregator website, make sure that you check the details of the policy on the insurance provider’s website also.
 
10. Know the Value of Your Car
Knowing your car’s value can save you from paying outright high premium. So, it is advisable to calculate your car’s market value before renewing the car insurance policy. Knowing the depreciated value of your vehicle will ensure that you can easily negotiate with the service provider over the premium amount, and save money on it.