- The need for car insurance
Having car insurance is a compulsion according to the Motor Vehicles Act, 1988. The two main types of coverages are liability coverage and comprehensive coverage. You must have the right level of cover that provides financial protection against any damages done to your vehicle. It also helps in providing cover for injuries to other drivers, passengers or pedestrians and their property. You can see many accidents taking place every day. Therefore, it’s reassuring to know that you’re covered financially if you’re involved in one.
- Lapsing period
Car insurance companies do not offer any grace period. The policy will lapse if the payment of premium is not done while renewing the same. Once your policy expires, you will need to get an inspection of your car done for its renewal. Authorized personnel carry inspection. If your comprehensive car insurance policy is not renewed within three months then No Claim Bonus (NCB) will no longer be eligible. In case your policy has lapsed, you will have three months to renew the policy.
When to renew?
Renewal is done when a policy expires. You can renew it by going on the website of the insurance company. The car insurance renewal process is quite easy.
Buying a car insurance policy will provide you with many benefits. However, the renewal of the same is as important. It gives you continued protection against all the risks. You do not have to spend much on renewing it. To know more, go through the tips given below and save that extra money.
- Compare various car insurance plans
You can check out websites of insurance companies and go through the plans offered by them. Once you have analyzed all the plans, you can choose the policy according to your needs. The best plan will provide you with adequate benefits and keep you financially protected. You can also make use of the car insurance premium calculator, a useful online tool helps figure out the quotes of different insurance companies in India.
- Calculate Insured Declared Value (IDV)
The maximum sum assured of your car insurance policy is known as Insured Declared Value. The calculation of IDV is done by adjusting the market value of your vehicle minus the depreciation. If your vehicle is damaged beyond repair then the IDV is paid. Your premium will be higher if the IDV is higher.
- Make use of accumulated No-Claim Bonus (NCB)
No-claim bonus is given to the policyholder for being a good driver and having no claims in a year. At the time of insurance renewal, you can enjoy your no claim bonus.
- Select a higher limit of voluntary deductible
The car insurance plan allows you to choose a limit of the voluntary deductible. This limit mentions the amount that the insured has to pay from his pocket. When a claim comes up he pays the limit of voluntary deductible and the insurer will pay the remaining amount. The higher the voluntary deductible, the lower your premium rates.
- Be familiar with your Car’s Value
You will save a lot of money on the premium, if you know the value of your car. All you must do is calculate the present value of your car by comparing it to its market value when renewing your insurance policy. This will help you figure out the depreciated value of your car. This also helps you to evaluate the premium of your chosen car insurance policy.
On a closing note, you must make a right and comparative choice. Make sure to consider the factors like features of the plan, riders offered, convenience and affordability rates, etc. Follow the tips given above to make the renewing process quick and easy. Invest some time on research and comparing different available policies. This will surely help you save a considerable amount of money when you renew your car insurance policy.