Car Insurance Renewal

A lot of Indians are unaware that as per Motor vehicles act, it is mandatory to have a valid car insurance policy. However, despite this law, a lot of vehicle owners either do not carry a copy or are sometimes found carrying expired insurance policy papers.

Earlier, renewing an insurance policy was a time-consuming and tedious job, however, now with the availability of online purchase or renewal of insurance policies, the process has become hassle-free and more efficient.

This process of renewing an insurance policy online is simple and one should try to renew their insurance prior to the expiry of the previous policy. This is recommended because if done on time, the policy does not require inspection. However, if a person applies for an insurance policy renewal after the expiration of the last policy, the procedure will include inspection which in turn will take more time. Also, if the policy is expired for more than 90 days, you will be deprived of NCB i.e. No Claim Benefit discounts. Therefore, to avoid such inconvenience and to safeguard your car against thefts or damages, it is important that you keep your insurance policy up to date.

There are also certain points that must be kept in mind before renewing a car insurance policy online.

  • Type of plan:

    Online insurance platforms, offer a lot of options. You therefore, need to choose if you want a comprehensive plan or a third party insurance. However, it is recommended that you choose a comprehensive plan which covers self-vehicle damage as well.

  • Add-on features:

    There are many additional benefits that are offered by insurance companies and you need to keep an eye out for the most beneficial plan. Some add on benefits are:

  • Zero depreciation cover:

    A high depreciation amount for high end cars when compared to the additional payable premium, this is a must have for all the riders.

  • Hydrostatic cover:

    This covers consequential engine damage or loss due to water logging.

  • Cashless facility at affiliated garages:

    Most garages have a cashless tie-up with insurance companies. You can get cashless claims that can be easily settled and you don’t have to run around for reimbursements.

  • Insured declared value or IDV:

    This is the basic amount which is fixed by the insurer for that particular year’s current market value of the vehicle which is provided to the vehicle owner in case the vehicle is stolen or completely damaged.

  • Compulsory and voluntary deductibles:

    An insurance provides you with complete cover, however, there is usually a basic amount, which usually ranges from 1000 INR to 2000 INR that is to be paid before making any claim. This is to reduce/ avoid fake or small claims.

  • Renewal quote:

    It is a variable amount and depends on the following:

– IDV
– Additional riders
– No claim bonus

  • Claim procedure:

    A good car insurance claim procedure is simple and straight- forward with no hidden factors. Knowing the same and being aware of all the factors is important.

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