However, to enjoy constant coverage under a car insurance plan, policyholders must renew the plan before the policy term ends. When it comes to car insurance renewal, there are certain pointers that individuals must consider to save a large amount of money, thereby making the renewal process economical.
How to select the most suitable car insurance policy during renewal?
Before delving into renewing a car insurance plan, factor in the following pointers to make an informed decision:
- Compare different car insurance policies
Several car insurance companies are extending different plans. Hence, it is advised to research and browse new insurers and compare their offerings with the existing plan. With robust digitalization, it has become easy to compare insurers online. One needs to shortlist their requirement while choosing a plan. Assessing the coverage amount and tallying it with the premium fee will help individuals settle for a plan that extends the maximum value of one’s money.
Policyholders can choose to stick to a third-party car insurance plan or conveniently opt for a comprehensive car insurance policy and enjoy extensive coverage. A third-party insurance plan is affordable; however, and it extends minimal coverage. On the other hand, a comprehensive insurance policy comes with higher premiums and covers both third-party and own car damage.
Policyholders can also increase and decrease the insurance coverage as per their current requirements while opting for a car insurance renewal.
Policyholders must compute the right IDV or Insured Declared Value before renewing the plan. It is the amount decided by the insurer under the current market value of the car and is offered when the insured car is damaged beyond repair or is stolen. IDV influences the insurance premium quote.
Higher IDV will result in increased premium rates, whereas choosing a lower IDV will reduce the premium fee. However, it can leave policyholders underinsured during a total loss of the vehicle. Hence, individuals must opt for an insurance company offering their calculated Insured Declared Value, keeping them from paying higher premium rates.
- Look for voluntary deductibles
A voluntary deductible is a basic minimum insured must bear from their savings for every claim they make. The remaining amount will have to be paid by the insurance company. Moreover, choosing a voluntary deductible will help policyholders enjoy discounts on the premium quote. However, it can reduce the claim amount. Hence, policyholders need to choose the right limit of voluntary deductible.
Insured individuals can choose to utilise the NCB (No Claim Bonus) while renewing their car insurance policy. It is an incremental benefit that will help them avail discounts on premium amounts during policy renewal. However, policyholders can reap this benefit only if they have not filed a single claim during the policy tenor. They are entitled to 20% of the IDV for the first claim-free year, which can accumulate to up to 50% by the fifth year.
One can miss out on the notable benefits of the No Claim Bonus if they are not renewing the car insurance at the right time, as it will reset.
- Check for a cashless facility at network garages
While searching for other insurers, check network garages in a tie with the insurance company. Policyholders can streamline their search for the right insurer by checking which one of them is in a tie with their preferred garage. Moreover, check for a cashless claim process in which the insurer will directly settle the bill with the garage without requiring policyholders to seek reimbursement later.
- Look for add-on covers
Though availing of add-ons is optional, it can help policyholders receive considerable coverage for a nominal premium. Some notable add-ons are zero depreciation cover, engine protects cover, consumable cover, roadside assistance cover, etc. Though one needs to avail of the add-ons with additional cost, these riders will help extend the efficacy of the insurance plan.
Another important parameter that individuals must check while renewing a policy from another insurer is the ease of the claim procedure. In this regard, customers can renew their motor insurance plans from the diversified marketplace Bajaj Finance Limited and enjoy a hassle-free claim process, helping them tide over unforeseen exigencies conveniently.
Moreover, individuals can avail themselves of different types of motor insurance policies through the diversified marketplace. However, to avail of such lucrative benefits, individuals must meet the eligibility criteria required for a motor insurance plan.
Policyholders can also become members of the Automobile Association of India or Western India Automobile Association to receive discounts on the premium fee. Moreover, installing safety devices in vehicles will enhance vehicle security and enable policyholders to enjoy exemptions on premium rates.
A policyholder must also go through insurance plan terms carefully before availing it. A thorough understanding of the technical terms will help policyholders make an informed decision.
In conclusion, a car insurance plan keeps policyholders financially secured against expenses arising from the damage caused to their vehicle. However, opting for a car insurance plan is not a sufficient measure. Policyholders will also have to focus on the car insurance renewal period and consider the factors mentioned above while doing so.
Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.