It is of common knowledge that third-party motor insurance is mandatory in India by law. Renewing the policy on time will give you the benefits. Not carrying a valid motor insurance policy can lead to legal complications.
Renewing a motor insurance policy is not as complicated as it used to be. It can be done online,and the insurance company websites have the answers to all your queries.
Renewing Motor Insurance in India
Renewing your policy on or before the stipulated time is essential to continue its benefits. If your motor insurance policy expires, you can renew it by getting your vehicle checked and surveyed by the insurance providers.
Irrespective of whether you renew your policy with the insurance office or online, you will require the following documents:
- The main policy document
- A copy of the claimform
- Proof that you have received the claim in the past year (or since your last renewal)if any
- Car related documents that contain the model number and manufacturer details of your vehicle
- Registration certificate of your vehicle
With the documents mentioned above, you can log in to the insurance provider’s website and renew your policy easily by clicking ona few tabs.
It is also possible to change your insurance provider online after your policy lapses. Based on your previous records and motor insurance policy details, it is possible to switch insurance providers. Payment for online renewal is made through net banking, or through debit or credit cards.
Insurance providers also offer reminders to renew your policy on time. Non-renewal means the policy has lapsed. Without valid policy documents, you cannot drive on the road.
Five Tips to Help You Renew Your Motor Insurance Wisely
Every time you renew your motor insurance, it is possible to curb the premium cost. When you make the right moves, you can save money and can also get added benefits from your motor insurance policy. The ways are elaborated below.
- Never Forget to Compare
It is alright if you have chosen your motor insurance policy in haste. You can switch providers easily. If you are not satisfied with your existing insurance provider, there is no compulsion to renew with the same company.
Compare car insurance quotes offered by other insurance providers in detail. There is a good chance that you can save a large percentage of costs by comparing and making the switch. There are several tools online that help you in comparing the premium costs of various insurance providers.
- Do not ignore the Fine-Print
Some insurance providers offer great discounts on premium costs, but the fine print may reveal some hidden clauses. This is something that most customers tend to ignore.
Read the fine print and understand the details carefully. If there are hidden clauses or something about it you do not follow, clarify with your agent or with your insurance provider. It is essential to understand every detail of the plan to avoid confusion or hassles during an emergency.
- Ensure to include the No Claim Bonus (NCB)
If an insured individual does not make any claims in a given policy year, he/she is eligible for a no claims bonus that is discounted from the premium while renewing the policy. This bonus or discount increases every year if claims are not made in the given year.
With many claims-free years, the policyholder can get up to 40 to 50% discounts on premiums to be paid. Most insurance providers include this discount; a customer only has to verify its inclusion.
- It is essential to know your vehicle’s value
Every time you renew your insurance, make sure to calculate your car’s market value. Knowing the value of your vehicle can prevent you from paying out a large sum as premium. The value of a vehicle depreciates over the years. If you know the current depreciated value of the car, you can negotiate a corresponding premium amount with the insurance provider or agent.
For example, you might have purchased a particular model of a car for Rs 6 lakhs. If due to low-performance or various other reasons, the value of the car depreciates by 50% in a year or two, you will still be paying the premium for the original 6 lakhs. While renewing, you should pay the premium for the depreciated amount of Rs 3 lakhs and not the original rate. Hence, it is important to know the value of your vehicle while renewing the motor insurance policy.
- Choose higher deductibles
It is expert advice to choose to claim higher deductibles. When you claim higher deductibles, you can reduce the cost of the premium paid later. Deductibles are the amount a customer chooses to pay at the time of the claim.
If a policyholder chooses to pay a higher amount than the prescribed amount at the time of the claim, it can reduce the premium amount during renewal.
It is good to renew your insurance at least a month or two prior to the expiry of your policy to avoid a last-minute hike in premium rates. You can calculate car insurance premium online by comparing various insurance companies to get a better deal.
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