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10 things you must know about renewing your car insurance

Purchasing a car can be an emotional and memorable experience. It’s a reason for joy, pride, and happiness not only for the individual buyer but also for their entire family. Spending time on choosing the desired model, colour, safety features, etc. are not the only important aspects of buying a car. Choosing the right insurance as a safe backup plan and secure investment for the future is equally important. And this isn’t a one-time thing, but a continued investment. Therefore, there are some important points to be kept in mind when renewing your car insurance.

1. Type of Plan

During the policy renewal, choosing the most suitable plan catering to your needs should be a high priority. It can either buy a Comprehensive Plan or a Third Party Liability Policy. A Comprehensive Plan offers a greater deal of coverage, as compared to Third-party liability, including own car damage

2. Add-On Features

Add-ons are a great way to secure extra protection for your car. The additional benefits in the car insurance policy such as the Zero Depreciation Cover or the Hydrostatic Cover can be very helpful. Hence, while renewing your car insurance policy, you can pick the covers that best suit you and are affordable.

3. Deductibles

This is the basic minimum amount to be paid by the policyholder. It can be Compulsory Deductible or Voluntary Deductible. This is done for reducing the number of false or fake claims. For lowering premium. It can be advised to opt for a voluntary deductible but the downside to that is a reduced claim amount. Therefore, it’s better to choose wisely.

4. Insured Declared Value (IDV)

This refers to the basic amount fixed by an insurer for the current market value of the vehicle for that year. It’s necessary to get the right IDV value to peacefully enjoy the policy benefits in case of any mishappening

5. Cashless Facility

For a more convenient way of handling insurance situations, make sure to check the presence of a cashless car insurance claim feature especially during renewal. This will enable easier settling of claims rather than paying from your pocket and running around for reimbursements to the insurer later.

6. No Claim Bonus (NCB)

NCB is the additional coverage provided by the insurer in case of no claims done for a policy for an entire year. This benefit is for the owner and not the vehicle and can decrease the premium amount to a large extent. About 5-10% of the IDV is given as a bonus or renewal in case of a claim-free year. It can be accumulated up to 50%.

7. Claim Procedure

For any insurance policy to be considered a good one, it must have a hassle-free and efficient claim procedure. Therefore, during the renewal process for your car insurance, make sure to opt for a policy that offers an easy claim procedure.

8. Potability

Car Insurance Policies allow complete portability from one insurer to another including all the benefits. Therefore, during the process of porting, one must make sure to check that all benefits have been duly continued and it’s a complete and fair transfer of the policy.

9. Avoid Lapses

To avoid hefty penalties and an expensive ordeal, make sure to renew your car insurance policy well in advance. Driving a car around on Indian roads without an active insurance policy is a huge risk. It’s mandatory to have one so renew before expiry to avoid lapses.

10. Compare Quotes online

A quicker and affordable way to renew the policy is doing so online. The policyholder can ask the insurers in consideration for quotes online, in order to make thorough comparisons across plans before coming to a final decision. A thorough effort will lead a wise choice.

Make sure to renew your insurance policy well in advance to keep your vehicle protected at all times. Thorough and sound research is advisable to make the perfect choice for yourself. Cholamandalam MS understands the importance of protecting your car and its Car Insurance helps make this process of policy renewal easy and smooth for you!

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