Benefits of Car insurance renewal

What are the key factors to check during car insurance renewal?

1. Type of coverage

There are primarily two types of car insurance policies in India-

Third-Party Liability Insurance: This is mandatory by law and covers damages to third-party property or injuries/death to third parties in an accident involving your vehicle.

Comprehensive Insurance: This covers third-party liabilities and provides coverage for damages to your own vehicle due to accidents, theft, fire, natural disasters, etc.

Assess your needs then decide if you want to switch from third-party to comprehensive coverage or vice versa during insurance policy renewal.

2. Insured Declared Value (IDV)

The IDV is the maximum sum assured by the insurer in case of theft of the vehicle. It is calculated based on the current market value of the car after depreciation. Make sure the IDV offered during renewal has the accurate market value of your vehicle.

3. NO Claim Bonus (NCB)

No Claim Bonus is a discount on the premium for not making any claims during the policy period. Check the NCB percentage applied to your renewal premium. If you have not made any claims, ensure the NCB is correctly applied. If you are switching insurers, make sure the new insurer considers your accumulated NCB.

4. Add-on covers

Add-on covers enhance the protection provided by the base policy. Common add-ons include:

1. - Zero Depreciation Cover: This add-on ensures you get the full claim amount without any deduction for depreciation on parts.
2. - Engine Protection Cover: Covers engine damage due to water ingression or oil leakage.
3. - Roadside Assistance: Provides services like towing, fuel delivery, flat tire change, etc.
4. - Personal Accident Cover: Offers compensation in case of accidental death or permanent disability.

You can decide on these add-ons based on your driving habits and vehicle condition.

5. Premium amount

Compare the premium quoted for renewal with other insurers. Get it checked through us. While a lower premium is attractive, ensure it does not compromise coverage quality.

6. Claim settlement ratio

The claim settlement ratio indicates the percentage of claims settled by the insurer against the total claims received. A higher ratio suggests a reliable insurer. Check this ratio before renewing your policy to ensure hassle-free claim settlements.

7. Network garages

Insurers have tie-ups with various garages where you can avail of cashless repair services. Check the list of network garages and ensure there are sufficient options available near you.

8. Policy terms and conditions

Read the fine print carefully. Understand the inclusions, exclusions, and terms of the policy. Check on deductibles, which is the amount you need to pay on your own before the insurer covers the rest.

9. Discounts and offers

Look for any discounts or offers available during renewal. Some insurers offer loyalty discounts, bundling discounts (if you have multiple policies with the same insurer), or discounts for installing anti-theft devices in your car.

10. Renewal timeliness

Ensure you renew your policy before the expiry date. Delays can lead to a lapse in coverage, and you might need to undergo vehicle inspection again, potentially increasing your premium.

Conclusion

Renewing car insurance in India requires careful consideration of various factors to ensure you get the best possible coverage at a reasonable cost. By evaluating the type of coverage, IDV, NCB, add-ons, premium, claim settlement ratio, network garages, policy terms, and available discounts, you can make an informed decision that provides adequate protection for your vehicle.