Is your auto insurance about to expire? If so, you have two options: either continue with your existing policy by renewing it, or switch to another policy. Whatever you choose, remember that in India it is compulsory to have a car insurance policy for your four-wheeler as per the Motor Vehicles Act 1988. So you should make sure that your car insurance renewal is done before it expires. .
6 things to know when renewing auto insurance
If you’re going through the auto insurance renewal process for the first time, here are six things you should consider:
1. Decide what type of auto insurance you need
You can choose between third-party car insurance and comprehensive car insurance. Although third party car insurance is compulsory in India, you must remember that it only covers third party liability and not personal damage. So, before opting for a car insurance renewal, it is very important to decide what type of plan you want to opt for, depending on your needs.
2. Check your no claim bonus
If you had a claim-free year in your existing car insurance policy, your insurer would have offered you a claim-free bonus (NCB). You can use this amount to get a reduction in your auto insurance renewal premium. And if you’re considering changing insurers, you can transfer your PNE premium to your new car insurance provider.
3. Know the market value of your car
It is important to know the market value of your car after calculating depreciation, as it is taken into account when calculating your car insurance premium. Knowing the depreciation and market value of your car will help you negotiate the premium with your insurer.
4. Buy only necessary add-ons
You can choose to purchase add-on coverages to enhance your auto insurance coverage. When renewing car insurance, insurers will bombard you with various additional coverages, but you don’t have to give in to their sales gimmicks. You should purchase additional coverages for your auto insurance policy online according to your needs and budget.
5. Check your car’s IDV
IDV stands for Insured Declared Value. This is the sum for which your car is insured, and this amount forms the basis of all claims settlements in the event of theft or irreparable damage to your car following an accident. You should ensure that your insurance policy quotes the correct IDV for your vehicle and avoid compromising on the IDV for a lower premium.
6. Consult the list of network garages
Before choosing your car insurance policy, ask your insurer for the list of network garages associated with it. You can avail cashless claim facilities at these garages, where the insurance provider will settle the bill directly with the garage. So check if an insurance provider is associated with your preferred garage and then purchase car insurance online accordingly.
Buying an insurance policy is also an important investment decision because it diversifies your portfolio. And, now that you know what to consider when renewing your auto insurance policy, be sure to complete your auto insurance renewal well in advance to avoid penalties. You can now use online facilities to do so. Buying car insurance online is not only faster but also affordable compared to buying it offline.
You can also use car insurance premium calculators to compare premium quotes offered by various insurers. And while you’re deciding how to renew your car insurance policy, be sure to do your research on the different four-wheeler insurance plans available on the market. It is necessary to make an informed decision before investing your money.