Owning car insurance is mandatory in India as per the Motor Vehicles Act, 1988. Just after the purchase of a brand new car, insuring our car is the first thing most of us do. After all, an expensive investment such as a car, must be well taken care of, mustn’t it? In fact, research has shown that more than one-third of cars in India do not have the mandatory third party insurance. However, it is a known fact that driving an uninsured vehicle in India is a liable offense according to the law.
What we fail to realize is that renewing car insurance is as important as servicing your car. We have put together a list of things you must know before you renew car insurance, in order to make the whole renewal process easier for you.
- Choosing an insurance plan
There are two main types of car insurance plans – third party insurance, which covers any damage your vehicle has caused a third party and comprehensive car insurance which covers your vehicle from damage as well. While third party insurance is mandatory to have, you can make the choice of whether you would like to buy a comprehensive insurance for your vehicle or not.
- No Claim Bonus
If you have not had any claims on your car in a particular year, you receive a No Claim Bonus in the form of a significantly reduced premium.
- Market value of your vehicle
It is important that you do a thorough research on the market value of your car in order to be in a better position to negotiate with your insurance provider while renewing your car insurance as your car’s value will depreciate with time.
- Timely renewal
If you lapse the renewal of your vehicle’s insurance policy, your insurance provider would charge you a hefty fine. To avoid this, make sure you renew your vehicle’s policy on time.
- Choose your add-ons
Add-ons may be up-sold to you while renewing your car insurance policy. However, be sure to choose only those add-ons that you truly believe you will need for your car.
- Voluntary deductions
While renewing your insurance policy you have an option to choose something known as a voluntary deduction. This is an option where you agree to pay a fixed amount during a future claim settlement, so as to reduce your premium and renewal costs.
- Cashless facility
Do your homework to see which car garage has a tie-up with your insurance provider to avail of the cashless facility during repair and maintenance. A cashless facility will save you on a lot of time rather than running about for a reimbursement.
- Online insurance
Today with the number of options the internet provides us with, it is a lot easier to buy car insurance online. With a number of insurance websites available, it is also easier to browse through and compare one online car policy with another.