Even though four-wheeler insurance is mandatory in India, more than one-third of vehicle owners do not have third-party insurance coverage handy with them, based on the insurance companies’ recent analysis. In fact, most of them carry fake insurance papers or old documents only for following the regulations.
Although third-party liability is compulsory in India, most car owners consider comprehensive car insurance to protect themselves from unprecedented damage on the Indian roads. If you want to protect your vehicle always, you need to renew the policy regularly.
There are specific must-knows for renewals. Now, you buy the plan for the first time from the car dealer or the insurance company based on a review and hardly pay attention to it.
It is only at the time of car insurance renewal you realize what to include and exclude, and accordingly buy the policy. Thus, it is ideal to buy the policy which suits your needs remembering the following points:
You should decide whether you want a comprehensive or third-party cover. Now as aware, third-party insurance is compulsory according to the law, which covers injuries caused to other people and their assets. A comprehensive plan, on the other hand, covers self and vehicle along with third-party liabilities.
There are some riders or additional benefits which are available with standard car insurance policy renewal. They are helpful:
This is almost a must-have cover for the 4-wheeler insurance, especially for high-end vehicles for which the depreciation amount is high than the additional premiums payable.
This covers the consequential loss owing to waterlogging.
Check with your garage which insurance companies they have coverage with where you claim the cashless facilities. These also get quickly settled than reimbursements.
Insured Declared Value:
IDV is the insurance company’s basic amount for the vehicle’s current market value provided if the car gets stolen or total loss of the same.
Compulsory or voluntary deductibles:
It is the basic amount you pay for each claim. With deductibles, it reduces the premium so that the fake or small claims are either avoided or reduced.
No Claim Bonus:
It is an additional coverage offered to the policyholders for not making claims the entire year. So, if you have not claimed, you get about a 10% discount on your premiums during car policy renewal. Check if the NCB is calculated accurately, especially if you have not made any claims in the previous year, and it needs to get carried forward. It can get accumulated for up to 50%.
When you do car insurance online renewal, the quotations can vary based on the IDV, additional riders chosen, deductibles like compulsory or voluntary, NCB, and other features and benefits.
Four-wheeler insurance policies are portable from one insurer to the other. The benefits continue. Hence, when you port the plan, check if the services are added, such as NCB, accurate IDV, etc.
Compare quotes online:
The best part about doing online car insurance renewal is getting a few more quotes from other insurers and comparing them based on the best price. So, you not only get the quotes but can also compare them and opt for the best policy based on your budget and requirements.