car insurance renewal

10 things you should know before applying for a car insurance renewal

There are a lot of etiquettes involved in getting the best car insurance and renewing it properly on time. Motor insurance is an essential tool of financial aid that every vehicle owner must possess. You can also easily process your car insurance renewal online without any hassle. If you are unaware of all the essential information that helps you during the renewal process, here are the top 10 things that you should know before applying for a car insurance renewal. Keep reading to know more! 

1. Type of Plans:

The first you need to do is to decide whether you need a comprehensive policy with add-on benefits or a third-party motor insurance policy. 

Third-party car insurance coverage is a mandatory policy under the Motor Vehicles Act that offers reimbursement for injuries caused to other people in an accident but not damage to the property or vehicle. Moreover, the comprehensive insurance policy covers the self-damage of the automobile as well. If you already have an existing policy, you can easily make a switch over by talking to your insurance policy provider. You may also opt for the car insurance renewal online

2. Add-on features:

There are quite a few additional benefits for riders that are available with the motor insurance policy. Those are the add-ons. These offer specific cover and extra protection according to the plan you choose. Some of the popular add-ons in the Indian market are:

  • Zero depreciation cover:

It is a must-have add-on if do not want the depreciation amount of your car to be much higher. You can get this add-on while processing your car insurance renewal online. It is best for higher-end cars where the depreciation amount is higher. 

  • Hydrostatic cover:

It covers the loss caused due to water-logging. If you are someone residing in water-prone or flooding areas, this add-on will be of great use to you. 

  • Roadside assistance:

Another very popular add-on is roadside assistance which offers you 24×7 protection and helps in case you are stranded helplessly on the road. You can call your motor insurance provider and they will send the help you need. 

3. Cashless facilities at the connected garages:

You may check out your favourite garage with which motor insurance company they have tied up. You may opt for cashless car insurance claims rather than going around for reimbursement. 

Various cashless garages have increased due to the increase in demand for cars. 

4. Insured declared value (IDV):

Insured declared value or IDV is the basic amount fixed by the insurer based on the current year’s market value. It gets provided by the motor insurance company in case the vehicle gets stolen. You may also opt for the car insurance renewal online, offering various facilities. 

It is also beneficial in case of the total loss of the vehicle. 

5. Mandatory and voluntary deductibles:

It is the minimum amount to be paid for every claim. For example, Rs. 1000 or Rs. 2000 is the amount you need to pay for claims. The deductibles in the motor insurance policy reduce premiums so that fake or small claims get avoided. 

6. No-Claim bonus or NCB:

The higher the NCB, the higher discounts you will get. The higher NCB is a must-have if you are looking to process your car insurance renewal online by scoring major discounts on your premium. It is an additional coverage offering 5% to 10% of the IDV as a bonus if you do not claim for an entire year. Thus, the insurer accurately checks the NCB and carries it forward. NCB can get accumulated up to a maximum of 50%. 

7. Renewal quote:

The car insurance renewal online quotes can vary due to:

  • Insured declared value
  • Additional riders chosen or omitted
  • Compulsory or voluntary deductibles depending on the motor insurance plan type
  • No claim bonus gets carried forward
  • Other miscellaneous features and benefits 

8. Portability:

While opting for the car insurance renewal online, go for the motor insurance policies that are completely portable from one insurer to another, with all the benefits continued. Hence when you port the policy from one insurer to another, you must check whether all the benefits, such as No-claim bonus, add-on features, and accurate IDV continue. 

9. Claim procedure:

The most crucial aspect of a “good” motor insurance policy is the easy, hassle-free, and efficient claim procedure. Thus, knowing the same in detail and being aware plays a vital role while opting for car insurance renewal online. You may opt for car insurance that offers an easy claim procedure. 

10. Compare quotes and prices online:

It makes the most sense to fill in your requirements if you opt for the best car insurance renewal online. You must get a few quotes and then compare them based on the price benefits. Thus, you will get quotes for the best prices and compare them while choosing the best plan that suits your needs and the motor insurance budget. 

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