Owning a car is a highly coveted achievement for many individuals, often considered one of the primary milestones in life as soon as they begin earning. As the saying goes, “Success is hard, but maintaining it is even harder,” and this adage holds for your valuable assets, including cars.
Therefore, it becomes imperative to safeguard your car with the protection of a reliable car insurance policy. Possessing a comprehensive car insurance policy is crucial for obtaining benefits in times of need and ensuring peace of mind while on the road. However, it is equally essential to understand that car insurance renewal promptly and correctly is as critical as the initial purchase.
Fortunately, the insurance market continuously evolves, with leading general insurance companies like Tata AIG, offering cheap car insurance in India. It presents car owners with more options and flexibility when it comes to doing car insurance policy renewal. However, it is essential to consider five crucial factors before proceeding with the renewal process.
Let’s find out more!
Things to Consider When Renewing Insurance for Cars
- Type of Insurance
There are three main types of vehicle insurance policies: third-party, standalone OD cover, and comprehensive. Third-party insurance covers damages to the third party only, while standalone insurance offers coverage for the damages to your vehicle and personal injuries.
Comprehensive insurance, on the other hand, is a combination of third-party and standalone own damage cover. It also allows customisation with add-on riders to suit your needs, such as roadside assistance or zero depreciation.
Comprehensive insurance costs a little more than the other two types of insurance, but it provides greater peace of mind and flexibility. So, take this into account when doing a renewal of car insurance.
- The Insured Declared Value
During policy renewal, pay attention to the Insured Declared Value (IDV), which represents the insurer’s maximum liability towards your car. Be cautious of insurers offering lower premiums, which may result in a lower IDV. A higher IDV ensures adequate coverage and better financial protection in case of damages or loss.
While it may lead to slightly higher premiums, prioritising sufficient coverage over lower costs is essential for your peace of mind. Evaluate IDV options from different insurers and choose a policy that aligns with your car’s value and condition.
- No Claim Bonus
During your policy tenure, you become eligible for a No Claim Bonus (NCB) if you don’t make any claims. Insurers offer this NCB as a discount on your renewal premium. The NCB can be as high as 50% of the Own Damage (OD) cover, a component of comprehensive vehicle insurance and the third-party cover.
For example, if you pay ₹2000 per year for your vehicle insurance policy and the OD cover constitutes 80% of it, the maximum NCB you can receive would be ₹800.
- Portability
You may encounter an insurer offering similar coverage at a lower premium with better service quality during your insurance period. In such situations, consider switching your insurer.
Before renewing your insurance coverage, ensuring that your insurer provides you with the flexibility to make such a switch is essential. By being prudent and exploring your options, you can save money and receive improved services.
By actively comparing different insurance providers and their offerings, you can choose the most suitable coverage for your needs. This approach allows you to consider factors beyond the premium amount, such as the insurer’s reputation, customer reviews, claim settlement process, and overall customer satisfaction.
- Customisation Options
To tailor your vehicle insurance to your specific needs, you can customise it with add-on riders. These additional riders can enhance the coverage and protection your insurance policy provides. Some commonly available add-on riders include engine protection cover, theft insurance cover, natural calamity cover, and zero-depreciation cover.
However, it’s important to note that the add-ons offered may vary among insurers. Therefore, when renewing your insurance policy, choosing an insurer that provides the add-on riders that best suit your requirements is crucial.
Conclusion
Renewing your car insurance online promptly and efficiently benefits you and the insurance provider. However, it is crucial to clearly understand your policy’s features and thoroughly assess all relevant factors before proceeding with the car policy renewal process.
If you are considering switching to a different car insurance provider or obtaining a new insurance plan, it is recommended to compare the plans offered by leading insurance providers in India, such as Tata AIG and others. By comparing, you can evaluate their features, coverage options, and premiums to find the one that best suits your needs and budget.