Car Insurance Policies are usually issued for a period of one year, after which they are to be renewed to continue the policy for another year. As car insurance is mandatory by law, it is essential for every car owner to purchase a motor insurance policy. The rising number of car owners in India has led to a surge in the number of insurance providers offering insurance policies for vehicles.
With several insurers in the market offering motor insurance, many users tend to blindly renew their policies without going into the fine print of the benefits which their insurance provider offers. It is highly advisable that a car owner takes out 30 minutes of their time while renewing an Insurance Policy which will help them get the best insurance policy at the cheapest rate.
5 things to check before Renewing Car Insurance
- Compare online the Premiums charged by various Insurance Providers
Many Car owners simply renew their insurance policy from the same insurance provider from whom they had taken their car insurance policy initially. However, this may not be the right thing to do because there is a possibility that the insurer might have changed the policy terms and premium calculation process.
Therefore, it is highly advisable to take out some time and compare the car insurance renewal premiums charged by various insurance providers. This won’t take much time as you can easily compare the premiums charged by different car insurance policies online through the internet itself, and this would hardly take a few minutes.
- Check the Features
Always check the features offered by your Car Insurance Policy as some of them are not evidently visible. The features which were offered to you last year may not be offered to you this year.
It is always advisable to spare some time on checking the features offered by your Insurance Provider. It is also advisable to check on the claim settlement ratio as some insurers are lenient in approving claims whereas others are known to be strict. The higher the claim settlement ratio – the better it is for the vehicle owner.
- Don’t let the Policy expire
It is always beneficial to opt for Car Insurance Renewal before the policy expires. Even if you renew the policy before the policy expiration, the new policy will get effective only from the date on which your old policy expires.
Renewing your policy in advance will save you from price hike, which may occur later.
- No Claim Bonus
If you have not made any insurance claim in the previous year, this basically indicates to the insurance company that you are a good driver and they reward you for the same. This amount would be deducted from the overall quote and you’ll have to pay lesser premium. Over the years, No Claim Bonus can reduce the premium amount by up to around 50%.
- Know the Value of your Car
Every year, the value of your car decreases as the depreciation factor comes into play. Insurance experts suggest that if the car owner knows the value of the car well in advance – they can easily negotiate with the insurance service provider over the premium amount and save a lot.