Renewing your car insurance is undoubtedly crucial. It is not only mandatory for every vehicle to have a valid motor insurance policy as per the Motor Vehicles Act, but it also protects you financially in times when your vehicle is involved in an accident.
It’s a straightforward process to renew car insurance online. Here are some essential tips for your 4-wheeler insurance renewal.
Best Tips to Renew Car Insurance Online
1. Renew Early
Always review your insurance for car annually to ensure it still meets your needs and to take advantage of any new discounts or coverage options. Most importantly, make sure to renew your policy before its expiration date. This will avoid any coverage lapses and will keep the accumulated NCB secured for the next year.
Failure to do that might get your accumulated NCB points to zero. So, timely renewal of your four-wheeler insurance policy also saves you money. Missing your car insurance renewal date might invite hassles like car re-inspection by the insurance provider, too!
2. Check Claims Settlement Ratio
A car insurance claims settlement ratio (CSR) is the percentage of claims that the insurance company has successfully settled against the total number of claims registered by policyholders in a year.
This claim settlement ratio primarily reflects the credibility of the insurance company in settling claims. Always look for a high settlement ratio while renewing your four-wheeler insurance policy.
Reputed insurance companies like TATA AIG hold an impressive 99% claims settlement ratio, which makes it one of the most reliable car insurance companies in the market.
3. DIY
You can easily carry out your 4-wheeler insurance renewal online. This will allow you to explore options, add-ons, and personalized needs, which will help you make a well-informed decision within your budget.
4. Type of Plan
There are two types of insurance for cars: a third-party liability policy and a comprehensive plan.
- Third-Party Liability Insurance is essential for every vehicle as per Indian law. It only covers damages you may cause to other people or their vehicle in an accident.
- A comprehensive plan, on the other hand, offers you more coverage, including your own car damage coverage as well.
You must decide which four-wheeler insurance policy aligns better with your needs and then go for that one.
Tip: A comprehensive plan is a smarter move as it also gives you peace of mind knowing you are safeguarded from out-of-pocket expenses when things go wrong!
5. Claim ‘No-claim Bonus’ Benefit
No Claim Bonus or NCB is a feature where the insurance provider gives a discount (as a reward) on the renewal premium for not filing any claim during the policy year.
It accumulates each year and can go from 20% to 50%, depending on the number of consecutive claim-free years. So, remember to check your NCB every time you renew your car insurance online.
6. Pick Right Add-Ons
With experience and usage conditions, you must have acquired an idea about the important add-ons required for your vehicle.
Reviewing every add-on cover will be important for you as there are many other add-ons available. This can help you save money with your 4-wheeler insurance renewal.
Tip: A few must-have add-ons that we recommend are NCB protection, engine protection and zero-depreciation cover.
7. Determine Correct IDV
The Insured Declared Value or IDV is the maximum amount that your car insurance company will reimburse you in case of theft or total loss of your car. It is the current market value of your car based on its depreciation over time.
You are required to set the right IDV of your car so that you pay a fair insurance premium amount at the time of renewal. Note that a high IDV means high premiums, and setting it too low might not get you enough compensation if your car gets into a total loss situation.
Conclusion
You cannot predict an unfortunate event. Hence, perform your car insurance renewal on time. It will not only save you from any financial distress in case of any mishap but will give you peace of mind if you come across any car-related issues.
Use the above tips to customise and renew your four-wheeler insurance on time as per your requirements and budget.
To avoid claim rejections, drive safely, responsibly, within speed limits, and not under any alcohol influence.
