Personal Finance

5 factors to consider while renewing your car insurance

Updated : December 30, 2020 06:27 PM IST

It is essential to renew a car insurance policy before it expires.

Insurance companies usually provide a grace period of 15 to 30 days from the due date.

Under the same, the policyholder can make a premium payment without coverage lapsing.

It is essential to renew a car insurance policy before it expires. Insurance companies usually provide a grace period of 15 to 30 days from the due date. Under the same, the policyholder can make a premium payment without coverage lapsing.

In India, driving a car without a valid car insurance policy is a punishable offense, according to the Indian Motor Laws’ norms, wherein strict actions, and fines are also imposed on the driver.

Here are key things to keep in mind while renewing car insurance (Compiled by Rakesh Goyal, Director, Probus Insurance – an insurtech broking company):

Type of the plan

Third-party liability motor insurance covers injuries caused to other people during an accident and is a mandatory policy in India. However, suppose policyholders currently possess a third-party liability plan. In that case, they can always look for a comprehensive plan that covers both third-party liability and own damage, thereby ensuring dual benefit in a single plan.

Also read: How to renew expired car insurance policy

So deciding the type of plan based on the changing needs and budget is significant while renewing the plan.

Add-on features

Reviewing the add-on covers is crucial while renewing the car insurance plan. During this time, policyholders must make all the required adjustments and personalise their plan, which would eventually help them in enhancing their existing add-on covers as per the needs.

Policyholders can also consider eliminating the existing add-on cover, which might not be helpful in the previous year, and update with something specific to the needs.

No Claim Bonus (NCB)

While renewing the car insurance plan, customers should check if they are eligible for any kind of bonuses from the previous insured year. The ‘No Claim Bonus’, on the other hand, would reduce the premium amount and can be used even on changing the car.

Comparing quotes online

Evaluating the different options available online during the renewal time is indeed an important parameter. One should clearly examine the features, premium cost, Insured Declared Value (IDV), etc. to check if better options are available with other insurers.

Check the coverage terms

Sometimes the insurance companies tend to change the terms and conditions or alter the features. If customers are not happy with the new changes, they can opt for a different plan or consider a different insurer that best fits their suitability.

Hence, checking the coverage terms during the renewal is vital.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

5 factors to consider while renewing your car insurance

You May Also Like

Coronavirus News Jan 15 highlights: As tally crosses 1.05 crore, India set to roll out world's biggest vaccination drive tomorrow

GAIL board approves Rs 1,046 crore share buyback

Closing bell: Sensex, Nifty end over 1% lower; IT stocks drag

Trending on CNBC-TV18

recommended for you