Anything in life stays with you longer if you preserve it. Not only is this the case for life, but also all your valuable possessions. This includes your car along with your car insurance. As a car gets older, it needs more money for maintenance and repairs. While insurance serves as a solution, it also adds responsibilities of its own. One of these responsibilities is renewal.
Every insurance policy has a fixed term. It is important to renew it before the term expires. Most insurance providers offer a grace period after the due date for policyholders to make the payment and renew their policy. However, it is better to do it before time and not risk any coverage lapse. Moreover, it is illegal to drive with an expired insurance policy.
Renewing your car insurance policy can be more than just avoiding trouble. It can also serve as an opportunity to refine your coverage. All you have to do is know what to look at. Hence, here are 5 factors to consider while renewing your coverage:
Being mandatory by law in India, a third-party insurance policy covers injuries and damages caused to another person by your vehicle. However, it does not cover damages to your own car. Hence, when you are making a renewal, you can upgrade your policy to a comprehensive plan. This type of plan offers all the benefits of a third-party plan and offers coverage against damage to your vehicle. However, comprehensive plans charge a higher premium. Hence, you should only go for an upgrade if you can afford to make regular premium payments.
You have to consider add-ons only if you already have a comprehensive plan or are planning to upgrade to one at the time of renewal. Add-ons, as the name suggests, are additional features that an insurance policy can offer. Add-ons are a great way of shaping a policy to the best of your needs. Hence, reviewing add-on covers at the time of renewal is very important.
Since, it can be difficult to update a policy in the middle of its term, renewal is a great opportunity to revise your car insurance through add-ons. Later on, you can refine these add-ons further as per your requirement.
On the other hand, if you want to save premium, you can also choose to remove an add-on from your coverage.
No claim bonus
A no claim bonus is a treat offered by insurance providers to their comprehensive policyholders for as long as they do not make a claim. The idea is that if a driver drives safely, he/she is less likely to be involved in an accident. Thus, he/she does not file a claim. Thus, a no claim bonus is a reward for being a smart driver.
Hence, no claim bonus should be given consideration while you are renewing your policy. If you already have the NCB add-on, make sure that you don’t have any bonuses left to collect from the previous year. On the other hand, if you don’t an NCB cover, look into how much your insurance provider charges you for it and if you can afford it.
You always might have heard of comparing plans while buying a policy. Since, renewing a policy is essentially buying it again, why not compare it with other plans? Doing so might find you a better plan than the one you have right now. Look into the features, IDV, premium, etc. of various plans to compare it with your current one.
Review coverage terms
Insurance has a lot of benefits but also a lot of limitations. These benefits and limitations depending on the coverage you have. Sometimes, insurance providers make changes to the terms and conditions of your coverage. Simply review any changes that have been made before renewing the policy. If you do not like the changes made, you can opt for a different plan or switch insurance providers to find an insurance solution that suits you.