Best Tips To Renew Car Insurance Online

Tips for Car Insurance Renewal

Here are some tips to remember when renewing car insurance:

• Renew Before It Expires: Driving a car without a valid third party insurance will attract a fine of up to Rs. 2,000. Renew your policy before it expires and enjoy a stress-free car ownership.
• Don’t Rely On Agents: Even if you have bought a policy through an agent, don’t wait for the agent to renew it. In the event of a mishap or document verification by the police, the car’s owner is responsible for bearing the burden of any penalties and not the agent. You should initiate the vehicle insurance renewal process to avoid missing the due date. Moreover, by renewing the plan on your own, you will save some money, which would otherwise go to the agent or intermediaries.
• Customise the Plan: Depending on your existing car insurance coverage requirements, you can customise the plan during renewal. You can include more add-ons, if required, or remove the ones you no longer need. Apart from making changes in the add-ons, you can also modify your plan. For instance, if you just have third-party car insurance and need broader coverage, then you can upgrade to a comprehensive plan.
• Check the IDV: You should also check the Insured Declared Value or the IDV during renewal. Insured Declared Value, which is your car's fair market value, is the maximum amount you’ll get in the event of theft or severe damage to the vehicle. So, it is very important to choose an appropriate IDV during the renewal process. A higher IDV will better protect you in the event of a payout due to theft or damage beyond repair but it will also increase your insurance premium. A lower IDV will reduce your insurance premium but it may not satisfactorily compensate you, should you need to file a claim.
• Use the Accumulated NCB: If you have not made a car insurance claim in a given year, then do not forget to take advantage of the No Claim Bonus (NCB) during the renewal process. If you have accumulated NCB, you can get a discount on the premium, up to 50%. However, to remain eligible for the discount, you have to renew your insurance before the current one expires. If you do not raise a claim in the first year, then the NCB percentage is 20%, likewise, it increases to 50% till the 5th year of the policy. 
• Get Discounts on Premium: You can install anti-theft devices or opt for higher voluntary deductibles to reduce your insurance premium. With higher deductibles, you opt to pay a slightly higher, but fixed, amount during the. Therefore, you have to pay a lower premium. On the other hand, anti-theft devices like steering wheel locks, brake locks, etc reduce the insurer's liability and thus the premium in such cases is often lower. 
• Review Your Plan: When you renew your plan, you should also give some time to review it. For instance, if you are not satisfied with your existing insurer and plan, you can change it. However, when looking for new plans, check the coverage, premium rates, insurer’s claim settlement ratio, and reviews. 

What Happens If I Forget To Renew Car Insurance Plan Before its Expiry Date?

If you miss renewing your car insurance plan, here is what will happen:

• In case of an accidental damage to a third party’s property or injury/death of another person, you’ll become exposed to significantly larger financial and legal risks. You may land up in legal trouble if you are found driving your car without a renewed car insurance policy
• In case of a traffic police vehicle document check, you’ll have to pay a fine of up to Rs. 2,000
• You’ll lose the vehicle’s financial coverage
• You’ll lose the accumulated NCB (No Claim Bonus)The accumulated No Claim Bonus
• You may have to pay a higher premium to renew the policy after its expiry date
• You may not get all the additional coverages from the previous year policy

Conclusion

To avoid a penalty and serious legal/financial troubles, renew your car insurance before it expires. A car insurance policy is typically eligible for renewal about a month before it expires; you can check the expiry date on your policy document. While third-party car insurance is enough to cover you legally, it doesn't provide enough protection against your vehicle damage. So, we highly recommend getting comprehensive insurance coverage with add-ons like Zero Depreciation Cover, Engine Protection Cover, Consumable Cover and others.