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Are you going to renew your car policy? Consider these points before renewal

Renew car insurance online
According to the Motor Vehicles Act, 1988 in India, renewing a car insurance policy is not only necessary but also mandatory. If you have a third party or a comprehensive automobile insurance plan, it is essential to renew all policies for better protection. If you are considering renewing your auto insurance, here are some things to consider.

Do your homework (Research Online)- You can search online for various policies. Some many insurers and aggregators offer online auto insurance plans. The online process is simple, secure, paperless, and hassle-free. The entire process can be completed in a few minutes, and the insurance policy is delivered directly to your inbox.

You can also compare multiple policies on a single tab, and choose the best available bid. Find out how much amount of coverage you need with pre and after-sales features. In short, buying a car insurance policy online is not only cheaper but one of the best available methods.

Policy type- Make sure you choose the right insurance policy. You can select a compulsory third-party auto insurance policy, or choose a comprehensive car insurance policy. Third-party auto insurance policy (Motor Vehicles Act, 1988) is mandated by law. It only protects third party liabilities. A comprehensive car insurance policy protects all third parties and individual claims. It is advisable to buy a comprehensive car insurance policy.

Add-on-add-ons broaden the cover offered by a comprehensive vehicle insurance policy. Some add-ons that should be:
  • Zero Depreciation
  • Return to Invoice
  • Engine Protection
  • Roadside Assistance
  • No Claim Bonus
  • Loss of Personal Belongings

No claim bonus- If you do not claim for a given year, you are liable to the NCB. The NCB is an incremental benefit that can increase by up to 50 percent over five years. Make sure NCB services are in your insurance plan. Even if you transfer the insurance policy, the NCB is transferable.

Insured Declared Value- IDV is the actual market value of your vehicle price. If your car is destroyed or stolen, then the IDV is the maximum amount received from your insurance provider. IDV is an essential factor that determines the insurance premium. It is crucial to get a car insurance policy with the right IDV.

Discount- If you have installed an anti-theft device inside your car, then you are entitled to a discount on the car insurance premium. Insurers offer discounts as long as the Automotive Research Association of India certifies the anti-theft device.

Voluntary deductible- Optimizing for voluntary deductions at the time of policy renewal will reduce your premium. The deductible is the minimum amount you need to pay in case of a claim. Voluntary deductible is mandatory. You can choose the amount for the voluntary deduction.

Cashless facility- Make sure your insurer has a vast network of cashless garages across India, especially around your place of residence. Repair costs can be expensive, and as such, it is advisable to use a cashless garage.

Note: It is best to renew your car insurance before expiry. If you fail to renew your car insurance policy before the expiration date, the inspection will be done on your vehicle. It will increase the premium, and NCB will rest if you do not renew your policy after 90 days of its expiry.