Is your car insurance policy about to expire? Make sure to renew it in a timely manner to stay on the right side of the law. Most people consider purchasing and renewing car insurance as a mere compliance-related activity. Essentially, insurance is a way of minimizing financial losses. And car insurance comes in handy in case your vehicle is involved in an unfortunate event such as an accident. Therefore, there’s more to car insurance, especially if you are about to renew it. Read ahead to know 7 important tips that you should know while renewing a car insurance policy online.
1. Do It Yourself
Car insurance isn’t too complicated. In fact, new-age insurers have simplified their offerings so that it becomes easy for vehicle owners to buy and renew car insurance easily.
Car buyers usually go for the car insurance policy suggested by the showroom or the dealer from where they purchased the vehicle. However, you do have the option of insuring the car without any intermediary by selecting an insurer and purchasing or renewing it from their website. You are in a better position to analyze your requirements, gauge the extent of your cover and make an informed decision.
2. Review Your Coverage
You do not need to continue with the same insurance coverage you had opted for a year ago. You can increase or decrease the coverage based on your current needs.
In case you were not aware of Add-on covers while purchasing your Comprehensive policy, you can enhance your coverage by going for a suitable rider such as Zero Depreciation during car insurance renewal. This will slightly increase your car insurance premium but prove beneficial during claim settlement.
3. Review Your Insurer
Once you have decided on your coverage, you can review the service provided by your existing insurer and decide if you want to continue with the same insurance company or not. You can also look out for an insurance company that provides the desired coverage but at a lesser cost than your current insurance provider.
Consider choosing a digital-first insurance company as they provide a convenient purchase journey, low-priced policy, and a hassle-free claims process. Since they are an online-only insurer, they spend less on operational costs, and can afford to sell policies at a lower cost than the competitors without reducing the coverage offered. You can renew your policy within minutes from such online insurers. However, make sure that the insurance company is certified by Insurance Regulatory and Development Authority of India (IRDAI).
4. Pick the Right IDV
Insured Declared Value or IDV as it is referred to has a direct impact on your insurance premium. It is the current market value of your car’s price. It is not to be confused with the vehicle’s resale value.
IDV is the maximum amount you will receive from your insurance company in case of total loss, i.e. irreparable damage or car theft. Picking the right IDV is important, as going for a higher IDV will increase your premium while setting a lower IDV will leave you underinsured in case of total loss.
5. Grab the Discount
Did you know you can get a discount on car insurance premium if you have installed an anti-theft device in your car? Insurance companies offer such a discount provided the anti-theft device is certified by Automotive Research Association of India. This is a win-win situation for you as well as your insurance company, as it minimizes the chances of a car theft.
6. Don’t forget the NCB
Car insurance companies offer a No Claim Bonus (NCB) to policyholders who do not raise a claim during a policy period. NCB is an incremental benefit; it can go up to 50% provided you do not raise a claim for a period of five consecutive years.
In case you raise a claim, NCB shall reset to zero and the accumulation will start from scratch. Make sure to check if your insurance provider has included the NCB component in your car insurance quote. Note that NCB stays intact even if you choose to switch your insurance company.
7. Renew Before Expiry
Driving a car without an active car insurance policy is a punishable offense as per The Motor Vehicles Act, 1988. If you fail to renew car insurance before expiry, the insurance company might want to inspect your car before renewing its insurance. This can result in increased premium. Also, if you do not renew your policy before 90 days after its expiry period, you will miss out on your accumulated NCB as it will reset.
Renewing car insurance is not a time-consuming exercise; make sure to renew car insurance a week before the expiry date to avoid any issues.
Acko General Insurance is an IRDAI-certified insurance company. A new-age insurer provides car and bike insurance at a lower premium and in a convenient manner. Acko is trusted by 1.3 crore Indians for their insurance needs.