Finance

Things to Know Before Renewing Car Insurance

Owning car insurance is mandatory in India as per the Motor Vehicles Act of 1988. Just after purchasing a brand new car, ensuring our vehicle is the first thing most of us do. After all, an expensive investment such as a car must be well taken care of, right? Research has shown that more than one-third of cars in India do not have mandatory third-party insurance. However, it is known that driving an uninsured vehicle in India is a liable offense according to the law.

We fail to realize that renewing car insurance is as important as servicing your car. We have compiled a list of things you must know before continuing your car insurance to make the renewal process easier for you.

Six Things to Know If You're Renewing Your Car Insurance for the First-Time  - Elets BFSI

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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 injury. While third-party insurance is mandatory, you can choose whether you would like to buy comprehensive insurance for your car 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 as a significantly reduced premium.

  • The market value of your vehicle

It would help if you did thorough research on your car’s market value 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 your vehicle’s insurance policy renewal, your insurance provider will charge you a hefty fine. To avoid this, 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, choose only those add-ons you truly believe you will need for your car.

  • Voluntary deductions

While renewing your insurance policy, you can choose something known as a voluntary deduction. This option allows you to pay a fixed amount during a future claim settlement 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 much 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 several insurance websites available, it is also easier to browse through and compare one online car policy with another.

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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