Owning car insurance is mandatory in India as per the Motor Vehicles Act, 1988. Just after purchasing a brand new car, ensuring 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 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 renewing car insurance to make the whole renewal process easier for you.
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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 choose whether you would like to buy comprehensive insurance for your vehicle or not.
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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.
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The market value of your vehicle
You must do 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.
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Timely renewal
If you lapse the renewal of your vehicle’s insurance policy, your insurance provider will charge you a hefty fine. To avoid this, make sure you renew your vehicle’s policy on time.
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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 you truly believe you will need for your car.
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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 to reduce your premium and renewal costs.
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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 a lot of time rather than running about for a reimbursement.
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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.
