Apart from car insurance being mandatory in India, it is also important to protect you from financial losses arising due to an accident or mishap. It is recommended that car owners buy a car insurance policy that is tailored to their requirements. These policies have a fixed term for which they are valid and need to be renewed on or before the expiry date.

Failure to renew your insurance for a four-wheeler could lead to legal and financial implications. You can renew your policy with the same insurer or find a better insurance company if you are not satisfied. You can use the car insurance premium calculator available on websites of insurers like Tata AIG to calculate the car insurance premium. There are various factors that you need to keep in mind during car insurance renewal, as described below.

Smart Tips for Renewal of Car Insurance

Here are the top 7 tips to follow for the renewal of your car insurance:

• Type of insurance plan

Does your existing car insurance policy meet your requirements? For example, if you have a third-party liability-only insurance policy, then is it enough for the risks you are exposed to? If not, then renewal can be the time you switch to a comprehensive plan.

• Insurance company

Are you satisfied with your current insurance provider? Is the service up to your expectations, or do you need a better provider? If yes, then renewal can be the time you look at other insurance providers to find the one that meets your expectations. In addition, you can compare car insurance, read reviews, and talk to existing customers of the company before making a decision.

• Coverage

While the basic features are similar, add-on covers in a comprehensive plan can make a huge difference in the coverage of the policy. Add-ons can vary between insurers. Hence, when you are renewing your policy, it is prudent to look at the options available in the market to create a plan customised to your needs.

• Consider Using Deductibles For A Premium Reduction

You can reduce the premium of your car insurance policy by opting for the voluntary deductible component offered by the insurer. This is an amount that you agree to pay at the time of the claim. The insurer decreases the premium proportional to the deductible specified by you.

For example, if you agree to a voluntary deductible of 10%, then when you file a claim of ₹10,000, you will have to pay ₹1000, and the insurer will pay ₹9000. Therefore, the premium will reduce since the insurer has a lower liability.

• Prefer Insurers With Network Garages

Many insurers have tie-ups with network garages that offer cashless repair of your car. Look for insurers that are tied up with garages in or around your place of residence and work or your travel route. This can save you a lot of trouble in the future.

• Don’t forget your NCB

When you buy a car insurance policy, the insurer expects you to file a claim for damages for approved reasons. However, if you go through a policy term without filing a single claim, the insurer saves money and extends a discount on the premium for the next term.

This is called the No Claim Bonus or NCB. This discount increases with every subsequent claim-free term. For example, if the insurer offers a 10% discount on premium for the first claim-free term, then if you have two claim-free terms, the discount might go up to 15%. Over the years, you can accumulate up to 50% ncb.

• Install Safety Devices

If you are planning to install an anti-theft device in your car, then doing so right before renewal can help you get an additional discount on the premium. This is because insurers find you to be a low-risk customer since these devices reduce the chance of theft.

Now that you understand how to renew your car insurance smartly, it is essential to keep these simple car insurance renewal tips in India in mind.

Summing Up

Remember, renewing your policy on time is important to receive good deals from insurers. While most insurance providers offer a grace period of up to 60 days for policy renewal, it is prudent to renew it before the grace period begins. You can use these simple car insurance renewal tips. Also, before you sign the renewal papers, go through the policy wordings and ensure that everything is as per your expectations. Then, follow the tips mentioned above and renew your car insurance policy to provide the best coverage to your four-wheeled friend. Good Luck!