Car insurance is mandatory in India. Without a valid insurance policy you will not be able to drive your motor on roads. There are general insurance companies that offer hundreds of car cover policies with customized solutions to meet consumer needs and requirements.
The policy could be purchased for a year’s time and can be renewed after every year. However, most often consumers are confused at the time of car insurance renewal and tend to purchase any policy which may later not even cater to their needs. If particular element of the policy doesn’t cater your needs you will have to bear the financial losses.
Below are few tips to consider while opting for car insurance renewal:
Before you buy insurance cover, it is essential to understand what cover you are willing to opt i.e a third party cover or comprehensive insurance. Then you should wisely analyze if the requirements of your car compared to previous year. Drop out the least important requirements and then revise the amount of cover you would require. You should also keep in mind the minimum level of cover that is set as mandatory by your government. While is it unsafe to be underinsured, paying high premiums will also burn hole in your pockets.
The wisest step would be comparing quotes online before car insurance renewal as it can save you a hefty amount of money and provide better coverage as well. It allows you to do a detailed comparison between insurance companies on the basis of their financial track record and claim settlement ratio.
No Claim Bonus insurance renewal
Every time you complete your car insurance year without a single claim you’re rewarded with No Claim Bonus points. You can redeem the points against the claim amount or premium reduction.
So check and see if you can avail of this benefit. If yes, then the discount will be deducted from your premium and you have to pay less for the current year. It is advisable, don’t claim for petty scratches or dent. Instead accumulate your bonus points and go for higher claim or discounts.
Add-Ones insurance renewal
Add-Ones help you customize your car insurance as per your need, besides adding on to the protection. Insurers provide consumer tailored solutions for add-ons that specifically suit your needs based on vehicle age, IDV, make & model and other factors.
You should invest small money for additional benefits such as nil-depreciation insurance, roadside assistance and personnel cover known as “Add On covers.” Add-ons might increase your premium slightly but they provide extra protection to both you and your car.
Discount insurance renewal
Since you’re valued consumer, insurance companies will try every means to retain their customers. You will be offered renewal discount, festive discount etc.
that can substantially reduce the burden on your pocket. Factors like good driving record, gear lock, anti-theft system, safety equipment will reduce your annual car insurance renewal premium by 5 to 10%. Insurance companies’ gauge that you are concerned about your car and help you reduces the cost of the insurer and the benefit is carried forward to the consumer.
Make sure you explore all the available options and minor details about your car at the time of car insurance renewal.
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