Renewing car insurance? Here's an essential guide to key factors2 min read . Updated: 02 Jul 2020, 03:14 PM IST
Timely renewing your car insurance policy can save you from some serious troubles and financial losses.
Is your car insurance about to expire? You can either continue with your current insurance company or make a switch to a new insurer which may provide more benefits.
Whatever the case may be, the insurance must be renewed before it hits the expiry date. Timely renewing your policy documents can save you from some serious troubles and financial losses.
If you are wondering where to start from, here's a list of the things you need to take care of before renewing you car insurance.
Compare policies online:
Gone are days when you needed to visit the dealerships or the insurer offices to get your policy renewed physically. Now the process has become fairly simple thanks to the power of internet. You can not just buy policies online but also compare the insurers side-by-side to see which one is providing maximum benefits as per your needs.
Select the right plan:
There are a number of car insurance plans present in the market today. While the third-party liability Motor Insurance is compulsory, you have the liberty to select if you want a comprehensive car insurance plan or a basic insurance policy. While the third-party insurance is the most affordable of all, a comprehensive insurance provides the best benefits. Choose the plan you want depending upon the budget.
While add-ons are not mandatory to be added but they make a world of difference. By paying a small additional amount over the premium, you can secure a much wider coverage such as Zero Depreciation cover, NCB cover, Invoice Protection cover, Engine Protect cover and much more. So it is always recommended that you give add-ons a look before moving forward.
Check if insurer provides cashless support:
Another key feature which you shouldn't miss is the cashless support, especially when it comes to premium vehicles. Reach out to the insurer to find out if its tied to your favorite garage and you can avail cashless benefits when needed.
Grab the Discount:
You are liable to get a discount if you have installed an anti-theft device in your car. Some insurance companies in India do offer such discounts provided that the anti-theft device is certified by the Automotive Research Association of India.
Also, at the same time, don't forget to claim 'No Claim Bonus' (NCB) if you haven't raised any claim during the policy period. It is an incremental benefit which can go up to 50% provided there is no claim request for a period of five consecutive years.
Right IDV is the key:
Insured Declared Value or IDV has a direct impact on your insurance premium. It is the amount that's given to the insured in case of a total loss, i.e. irreparable damage or car theft. Picking a balanced IDV amount is the key since higher IDV means you will also have to pay a higher premium, while lower IDV leaves you underinsured in case of theft or total loss.