A Comprehensive Guide to Hassle-Free Car Insurance Renewal

Posted on: Jun 8, 2022 | | Written by:

A Comprehensive Guide to Hassle-Free Car Insurance Renewal

Do you always find it tedious to undergo the hassles of renewing your car insurance? Well, now put all your worries and discomforts to sleep, if you are reading this. Car insurance purchase, maintenance, and car insurance renewal are mandatory for every Indian vehicle, as per the current law. Moreover, it acts as a protective shield in case of accidental circumstances. However, if you keep procrastinating, you jeopardize a whole lot of things, including the safety of your vehicle as well as yourself.

Here, we will discuss a few tips and techniques to reduce your hassles while renewing your existing car plan

1. Few clicks are enough

In today’s digital era, you can purchase or renew a car plan anytime, anywhere, even on the go or from the comfort of your home. All you require is a working smartphone or a laptop, and you are secured for at least the next year, or even more. It requires nominal paperwork and is much faster than a physical purchase. Moreover, you can easily acquire it 24/7 all 365 days of the year. Just login and then click renew and most of your job is done, which you might have been thinking too arduous up until now.

2. Switching your plan

Before purchasing or renewing your car plan, it is best that you undergo a little research to grab the best deal. While purchasing, you must have chosen one company. However, while in renewal, you can find a better deal offered by another and wish to switch your existing plan. Through online mediums, porting policies are no more a big deal now. It is best to do it, before your current plan lapses, and you lose valuable coverage days. For enhanced premium pricing, you must ensure to share the NCB letter, during the renewal of your plan.

3. Renew before it lapses

This is no rocket science to understand, that your safety will be in jeopardy in case your car plan lapses. It is risky for both your vehicle and yourself. Under any accidental circumstances, during that time, you will have to bear all the expenses and losses incurred. But, most important of all, by not holding a car plan, you are breaking the law, and you fail to qualify for renewal. You will have to purchase a new plan altogether, as your previous plan stands cancelled due to expiry. Moreover, any accident that happened without insurance coverage will lead to several inspections, high premium rates, loss of NCB, and even a penalty.

4. Grace period

Certain insurance providers keep ending reminders well before your existing car’s plan’s expiry date. But, this is not true for all companies. However, most standard insurance companies offer a grace period of three to thirty days. Ensure to check the exact grace period offered by the company you have chosen, as it varies from one company to another. They may even charge a late fee during the car plan renewal grace period.

5. Ready to face the hike

In case, you have faced any accident and made a claim from the insurance provider, your premium for the following term will eventually increase. Before settling for the final deal, always read the policy document carefully, to know and understand these finer details. In the case of a third-party claim, your premium value will undergo a significant hike. Therefore, it is best to maintain the traffic rules, and practice safe driving and riding to avoid any unfortunate circumstances, leading to an increased premium.

6. Believe in insurance lapses

The insurance lapses are real. For example, a two-wheeler insurance’s maximum validity is for three years. You can renew it smoothly within the grace time. However, if you miss the chance, you are back to square one, and begin it all over again from scratch. Moreover, you will also be barred from discounts during the purchase of a new plan. The more the time delay is, the more the cost will rise. In the case of a significantly old vehicle, if you delay purchasing a plan, the insurance company may decline to provide you with any coverage. Therefore, to save from all these hassles, it is best to maintain and follow a car insurance renewal reminder.

7. Importance of insurance renewal news

There are certain facts and figures which come in handy if you keep them in mind. For example, in the case of a hit-and-run accident, if you are proven innocent, the claim you make from your designated insurance provider, never affects your renewal premium. This is because it was not your fault as per the legal verdict. However, if it was your first accident case, certain insurance companies may allow you a free pass, provided, it remains included as an additional coverage clause.

8. Reducing the cost of car plan renewal

Try to avoid raising claims for smaller costs which you can easily cover. This is required as this practice will keep the future premium costs in check while renewing your plan. Your previous year’s claim impacts your current renewed plan.

9. Helpful voluntary deductibles

Your car plan renewal quote is significantly dependent on your choice of voluntary deductibles. However, ensure that you maintain your limits and the cost is well within your reach.

Car insurance renewal dos and don'ts

Online comparison:

This is one of the most crucial steps while purchasing or renewing your car plan. This helps you to grab the best deal and enjoy optimum benefits.

Choosing the right plan:

Amidst the presence of a host of different car plans, maintaining a third-part plan is compulsory. However, you can always extend your choice to a comprehensive plan. Depending on your requirements and driving habits, you can make the correct choice.

Add-ons:

As the name suggests, add-ons are not compulsory, these are additional benefits. It means that by paying an additional amount part from the designated premium amount, you can enjoy a host of other facilities like NCB cover, Zero Depreciation Cover, Engine Protection Cover, Invoice Protection Cover, etc. The selection of add-ons differs from one company to another. Depending on your choice of add-ons, you have to make the payment.

Cashless support:

You must always ensure that your chosen insurance provider offers a cashless support facility, especially for luxurious vehicles. It remains tied to a network of garages and authorised service centres.

Avail discounts:

If you have installed an anti-theft device on your car, you are eligible to enjoy a special discount from the insurance company, provided the device bears certification from the Automotive Research Association of India. Don’t forget to avail the NCB. Moreover, if you raise no claims for five consecutive years, you can enjoy an incremental benefit of up to 50%.

Correct IDV:

IDV directly impacts the premium value. IDV stands for the correct market value in case of complete loss or damage to the concerned vehicle. Picking the correct IDV will result in paying a slightly higher premium amount.

Conclusion

The above discussion is enough to prove that car insurance renewal has gone quite hassle-free and quick. You can enjoy a seamless renewal process anytime.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

“How I wish I had renewed my car insurance in time!” - Learn how timely renewal can minimize your financial loss.

Car insurance renewal tips to swear by

Car insurance renewal checklist to follow