9 Things You Must Know Before Renewing Your Car Insurance

Is your car insurance due for renewal? You can either continue with your existing car insurance provider or choose to switch to another insurance company. Whatever you do, remember that car insurance is not a choice but mandatory in India. It is therefore important to renew your car insurance policy before it expires. If you are wondering where to start from, here’s a list of things you should consider while renewing your car insurance plan:

  • Choose the type of your car insurance plan: Even though third-party liability Motor Insurance is compulsory in India, a car owner has the liberty to choose if he/she wants to buy a comprehensive car insurance plan or go for the basic car insurance policy. Before you renew your auto insurance, choose the type of plan you would want to go for depending on your needs and budget.
  • Know about No Claim Bonus: Insurance companies in India offer bonus to their customers for every claim-free year. This amount will be deducted from the total premium to be paid by the customer and can decrease the premium amount to a very large extent. If you are planning to switch your insurance provider, the no claim bonus will be transferred to your new auto insurance provider.
  • Market value of your car: Depreciation value of your car is considered while calculating the car insurance premium. It is important for you to know the market and depreciation value of your car as it will you to negotiate better with your insurance provider. You do not have to pay the quote they offer, you can always look into each variable and negotiate it till you are sure that you are paying the right premium.
  • Do not let your car insurance lapse: Always make sure that you renew your car insurance well in advance. Hefty penalties will be charged by the insurance provider if you do not renew your car insurance before the expiry date. Apart from the penalties, it is a huge risk to drive around without a valid vehicle insurance.
  • Choose the necessary add-ons: Every insurance company offers additional covers that customers can choose from. While renewing your car insurance, you will be bombarded with a host of features offered by insurance companies. Personalise your car insurance with add-ons that match your requirements. Do not give in to the rigorous upselling strategies used by the insurance companies to make you buy a car insurance policy that is way above your budget.
  • Voluntary deduction: Policyholders have an option to choose voluntary deduction option while renewing their motor insurance. Under this option, the policyholder agrees to pay a fixed amount or a percentage during any future claim settlement. This will reduce your premium amount and helps you reduce your car insurance policy renewal costs.
  • Cashless facility: Check with your insurance provider if they have cashless facility. It can be inconvenient to pay for accidental bills from one’s pocket and get it reimbursed from the insurance company later.
  • Claims: Claim settlement process can be tedious and time consuming. Always choose a insurance provider known for hassle-free and simple claim settlement. At the end of the day, we do not want to run around to get our approved. Do we?
  • You can get better car insurance deals online: If you are planning on buying a new insurance policy or renewing it, make sure your research a lot online. There are many websites that offer a wide range of car insurance policy. You can also compare various car insurance plans at BankBazaar website.

Sound research is important if you want to find the best car insurance plan available in the market. Make sure you read a lot before making a decision.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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