Car
insurance is mandatory in India. Without a valid insurance policy you will not
be able to drive your motor on roads. There are general insurance companies
that offer hundreds of car cover policies with customized solutions to meet consumer needs and requirements. The policy could be
purchased for a year’s time and can be renewed after every year. However, most
often consumers are confused at the time of car insurance renewal and tend to
purchase any policy which may later not even cater to their needs. If
particular element of the policy doesn’t cater your needs you will have to bear
the financial losses.
Below
are few tips to consider while opting for car insurance renewal:
Understand
Before
you buy insurance cover, it is essential to understand what cover you are
willing to opt i.e a third party cover or comprehensive insurance. Then you should wisely analyze if the
requirements of your car compared to previous year. Drop out the least important
requirements and then revise the amount of cover you would require. You should
also keep in mind the minimum level of cover that is set as mandatory by your
government. While is it unsafe to be underinsured, paying high premiums will
also burn hole in your pockets.
Compare online
The
wisest step would be comparing quotes online before car
insurance renewal as it can save you a hefty amount of money and provide
better coverage as well. It allows you to do a detailed comparison between
insurance companies on the basis of their financial track record and claim
settlement ratio.
No Claim Bonus
Every
time you complete your car insurance year without a single claim you’re
rewarded with No Claim Bonus points. You
can redeem the points against the claim amount or premium reduction. So check
and see if you can avail of this benefit. If yes, then the discount will be
deducted from your premium and you have to pay less for the current year. It is
advisable, don’t claim for petty scratches or dent. Instead accumulate your
bonus points and go for higher claim or discounts.
Add-Ons
Add-Ons
help you customize your car insurance as per your need, besides adding on to
the protection. Insurers provide consumer tailored solutions for add-ons that
specifically suit your needs based on vehicle age, IDV, make & model and
other factors. You should invest small money for additional benefits such as
nil-depreciation insurance, roadside assistance and personnel cover known as
“Add On covers.” Add-ons might increase your premium slightly but they provide
extra protection to both you and your car.
Discount
Since
you’re valued consumer, insurance companies will try every means to retain
their customers. You will be offered renewal discount, festive discount etc.
that can substantially reduce the burden on your pocket. Factors like good
driving record, gear lock, anti-theft system, safety equipment will reduce your
annual car insurance renewal premium by 5 to 10%. Insurance companies’ gauge that you are
concerned about your car and help you reduces the cost of the insurer and the
benefit is carried forward to the consumer. Make sure you explore all the
available options and minor details about your car at the time of car insurance
renewal.
