Guide to making a wise choice to renew your car insurance with savings of up to 85%!

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However, to receive consistent coverage under an auto insurance plan, policyholders must renew the plan before the end of the policy term. When it comes to auto insurance renewal, there are certain indicators that individuals must consider to save a lot of money, thus making the renewal process economical.

How to select the most suitable auto insurance policy when renewing?

Before you jump into auto insurance plan renewal, consider the following tips to make an informed decision:

  • Compare different auto insurance

Several car insurance companies extend different plans. Therefore, it is advisable to research and browse new insurers and compare their offers with the existing plan. Thanks to robust digitization, it has become easy to compare insurers online. One must pre-select their needs when choosing a plan. Assessing the coverage amount and comparing it with the premium charges will help individuals settle for a plan that extends the maximum value for their money.

Policyholders can choose to stick with a third-party auto insurance plan or conveniently opt for a comprehensive auto insurance policy and enjoy extensive coverage. A liability insurance plan is affordable; however, and it extends minimal coverage. On the other hand, a comprehensive insurance policy comes with higher premiums and covers both third party damage and damage to your own car.

Policyholders can also increase and decrease insurance coverage according to their current needs while opting for auto insurance renewal.

Policyholders must calculate the IDV Entitlement or Insured Declared Value before renewing the plan. This is the amount decided by the insurer based on the current market value of the car and is offered when the insured car is damaged beyond repair or is stolen. IDV influences the insurance premium quote.

A higher IDV will result in higher premium rates, while choosing a lower IDV will reduce premium charges. However, it can leave policyholders underinsured during a total vehicle loss. Therefore, individuals should opt for an insurance company that offers their calculated insured declared value, preventing them from paying higher premium rates.

  • Look for voluntary franchises

A voluntary deductible is a basic minimum that the insured must bear from his savings for each claim he makes. The remaining amount will have to be paid by the insurance company. In addition, the choice of a voluntary deductible will help policyholders to benefit from reductions on the premium estimate. However, this may reduce the amount of the claim. Therefore, policyholders must choose the right voluntary deductible limit.

Insured persons can choose to use the NCB (No Claim Bonus) when renewing their car insurance policy. This is an added benefit that will help them get discounts on premium amounts when renewing the policy. However, policyholders can only avail of this benefit if they have not filed a single claim during the term of the policy. They are entitled to 20% of the IDV for the first claim-free year, which can accumulate up to 50% in the fifth year.

One can miss the noticeable benefits of the no-claims bonus if they don’t renew the car insurance at the right time because it will reset.

  • Look for cashless installation at network garages

When looking for other insurers, check network garages linked to the insurance company. Policyholders can streamline their search for the right insurer by checking which one is on par with their preferred garage. Also, look for a cashless claims process where the insurer will settle the bill directly with the garage without forcing policyholders to seek reimbursement later.

  • Look for additional covers

Although the use of add-ons is optional, it can help policyholders gain considerable coverage for a nominal premium. Some notable additions are zero depreciation coverage, engine protection coverage, consumables coverage, roadside assistance coverage, and more.

Another important parameter that individuals should check when renewing a policy with another insurer is the ease of the claims procedure. In this regard, customers can renew their car insurance plans from the diverse marketplace Bajaj Finance Limited and enjoy a hassle-free claims process, helping them overcome unexpected demands with ease.

Moreover, individuals can avail different types of auto insurance policies in the diverse market. However, to avail of these lucrative benefits, individuals must meet the required eligibility criteria for an auto insurance plan.

Policyholders can also become members of Automobile Association of India or Western India Automobile Association to avail discounts on premium charges. In addition, the installation of security devices in vehicles will enhance vehicle safety and allow policyholders to benefit from waivers on premium rates.

A policyholder should also carefully read the terms and conditions of the insurance plan before availing themselves of it. A thorough understanding of technical terms will help policyholders make an informed decision.

In conclusion, an auto insurance plan financially protects policyholders against expenses arising from damage to their vehicle. However, opting for an auto insurance plan is not a sufficient measure. Policyholders will also need to focus on the auto insurance renewal period and consider the factors mentioned above.

Disclaimer: This article is a paid publication and does not involve any journalistic/editorial involvement of the Hindustan Times. Hindustan Times does not endorse/endorse the content(s) of the article/advertisement and/or opinions expressed herein. Hindustan Times shall not be in any way responsible and/or liable in any way whatsoever for anything stated in the article and/or also with respect to the view(s), opinion(s) ), announcement(s), statement(s), affirmation(s) etc., stated/presented in the same.

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