Steps To Avoid Mistakes While Renewing Car Insurance Online – Hindustan Times
The entire insurance sector has become highly streamlined and convenient thanks to digital transformation and a shift to the online ecosystem. This has made the car insurance renewal procedure a lot easier, simpler, and faster than it was a decade ago. Straightforward and instant policy issuance and renewals have replaced the previous procedures of exhausting form fill-up and document submission.
However, individuals must be aware and avoid certain mistakes to renew a car insurance policy in a hassle-free and affordable manner.
How to avoid mistakes while renewing car insurance online?
Here is a step-by-step guide to steer clear of all mistakes at the time of renewal of car insurance online:
Step 1: Renew the policy on time
After its purchase, a car insurance policy stays valid for a specific period and must be renewed. Individuals must ensure to renew their car insurance on time.
One can face penalties and traffic fines if one drives without a valid insurance policy. Some insurance providers may offer a grace period or additional time to renew the policy. But individuals must note that their insurance won’t cover their car during this grace period.
Step 2: Go for the appropriate IDV (Insured Declared Value)
A car’s Insured Declared Value is a crucial element in calculating the premium of a comprehensive insurance and third party insurance plan. It refers to the car’s present market value, not the invoice value.
IDV is arrivedafter considering the car’s depreciation cost. Also, it is the sum insured amount which an insurer offers to the policyholder if a car is in a total loss condition – lost because of theft or is irreparable. For this, insurance providers often offer the policyholders a range from which they can select the IDV.
Opting for the IDV impacts two things – premium and sum insured. A lower IDV implies a lower premium and lower sum insured, and a higher IDV denotes a higher premium and higher sum insured.
Ideally, individuals must avoid these two extremes and instead opt for an IDV that offers greater coverage, and the premium suits one’s budget.
Step 3: Use the accumulated No-Claim Bonus (NCB)
Individuals who do not raise claims in their last insurance policy period come off as safe drivers and receive a No-Claim Bonus (NCB) as a reward. NCB is a renewal discount. Managing the NCB accurately is an excellent way to reduce the payable premium.
One would get this discount on the premium upon renewal. The more claim-free years an individual has, the higher the discount. Thus, when the time comes for insurance renewal, individuals must check their eligibility for NCB and ensure that it is applied to the renewal premium.
Step 4: Consider the voluntary deductible
A deductible is an amount a policyholder can pay before the insurance company pays a reimbursement or claim.
Besides the compulsory deductible, individuals can also choose to pay an extra amount as a voluntarily deductible. Opting for a higher voluntary deductible can reduce the premium. However, individuals who make a claim would have to pay this amount independently.
Step 5: Opt for the right add-ons
Add-on covers provide an extra layer of protection for a car, but individuals need to pay an extra amount to acquire them. These help one enhance the convenience quotient and get a better claim pay-out. These add-ons include zero depreciation add-on, passenger cover add-on, no claim bonus protection cover add-on, roadside assistance add-on, etc.
As add-ons can increase the premium, individuals must ensure that they choose only the most suitable ones. Individuals must analyze their insurance requirements and take a call accordingly.
For example, a roadside assistance add-on can be ideal for an individual who drives a car daily and is concerned about getting stranded or facing a breakdown. A zero depreciation add-on negates depreciation calculation when settling claims and proves beneficial for relatively newer cars. A passenger cover add-on may not be ideal for someone who drives solo.
The perfect time to consider removing or adding any add-on cover is when a car insurance policy is up for renewal. While purchasing several add-ons can increase the premium significantly, not opting for any add-on can result in inadequate coverage.
Do note that one can easily switch to a different insurer if he/she feels there are better options and benefits. In this regard, one can opt for ACKO car insurance. Interested individuals can visit the portal of Bajaj Finance Limited to view and compare motor insurance policies before choosing a suitable one.
Thus, individuals must be aware of the above-mentioned steps to avoid mistakes while renewing their car insurance online. Avoiding these mistakes at the time of renewal will go a long way to help one make informed decisions.
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