Renewing car insurance before the policy expiry is crucial as it ensures continuous coverage. The renewal process is fairly simple, and with the emergence of online car insurance, it has become even more convenient. While it's super easy to renew car insurance , you may need to pay attention to a few things. In this article, we cover the 5 tips to keep in mind while renewing your motor insurance policy.
5 Car Insurance Renewal Tips
Here are 5 tips you can follow while renewing your car insurance policy.
1. Choose the Right Plan
Choose the insurance plan wisely while renewing car insurance. For instance, if you already have a third-party insurance policy, you can buy a standalone Own Damage policy instead of a Comprehensive policy. If both third-party and own damage cover is about to expire, you can go for a Comprehensive insurance plan. Hence, have a thorough knowledge of your existing policy before renewing your car insurance.
2. Choose the Right IDV
IDV (Insured Declared Value) refers to the approximate value of the vehicle, and it dictates the policy premium. Hence, you should always set the correct IDV while renewing car insurance. You can also make use of an IDV calculator , which is easily available online, to get an idea about the correct IDV for your car. If you set the IDV too high, your premium will increase, while setting the IDV too low will result in a reduced claim amount in case of total loss or theft of the vehicle.
3. Choose the Right Add-ons
If you are renewing the Comprehensive or Own Damage insurance plan, you can opt for add-on covers. Select the add-ons as per your requirements and the vehicle you own. Do not opt for unnecessary add-ons that will not add any value to you. A bonus tip while buying add-ons: If your car is new or you have recently purchased the car, opt for the Zero Depreciation add-on, as it will cover depreciation costs during claims, and you will get the full claim amount.
4. Check the Deductibles
Deductibles refer to the minimum amount that a policyholder has to pay during claim settlements. There are mainly two types of deductibles: mandatory and voluntary deductible. Opting for a voluntary deductible will reduce the insurance premium, but it will result in a lower claim amount. So, choose wisely. If you are confident that you will not raise any claims during the policy period, you can opt for a voluntary deductible and pay less premium.
5. Check Your NCB
NCB or No Claim Bonus refers to the discount offered by the insurance provider for making no claims during the previous policy period. Make sure you check your NCB while renewing car insurance if you have made zero claims. The NCB discount stands at 20% for the first year and goes on to 50% for five claim-free years. Note that this discount applies to the policyholder and not the vehicle.
Takeaway
Renewing car insurance on time can save you money, time and hassles. Thanks to online car insurance, the renewal process has become simple and quick. However, you have to be mindful of certain things while renewing the car policy. You can consider the tips mentioned in this article to save on the car insurance premium.
