This is an important topic to discuss in a country where 30-35% of the cars and close to 70% of two wheelers driving on roads are uninsured. Though the legal system wants every car owner to comply with the minimum insurance guideline of having at least a third party cover still a lot of people especially in smaller towns and cities don’t even have a policy in place, they carry with them fake or old insurance papers to just comply the norm. Even the insurance agents are not very much motivated to sell third party car insurance because of very less amount of incentivization.
We are specifically discussing here about renewals because most of the time the insurance policy for your new car is bought through the dealer and you have less opportunity to look for other options other than what your dealer has proposed. So renewal is the stage to make a sensitive decision.
There are few sincere thoughts that need to be put into before you jump into policy. Few sensitive steps which can help you eradicate the mistakes which you might have made while buying your first insurance from the car dealer and also help you build a long term strategy that ensures right protection for your car and enable you make a lot of savings.
Check Out Top 7 While Renewing Your Car Insurance Policy Things:
1.Which type of plan to select : Though merely buying a third party car insurance cover can help you stay complied with the regulatory requirement but is the cover enough.The third cover is generally responsible to address claims which may arise from a third party because something happened from your car. The idea of building protection strategy for your loved asset is missing .So it is always recommended to buying a comprehensive cover that not covers the third party claims but also damages happening to your car.
2.Which add on cover to opt for: All car policies come with additional cover which you can buy or not buy depending on your requirement.Anyways for all these additional cover you have to pay additional premium over and above the basic cover. The most needed add-on covers options are Zero depreciation cover and Hydrostatic .Zero depreciation may be defined as suitable for car owners whose car’s age is just 3 years or less and for owners of high end cars for which they have a huge price to buy.
3.Is your most loved garage is part of your insurer’s affiliate garage network: This may be an important factor to consider. This makes the cash-less claim process very easy and you don’t need to run after insurers to get your expenses reimbursed.
4.Insured declared value: This may one of the most important factor to look into but for that you need to understand what it actually means.Every time when you renew your car policy your insurers evaluate the concurrent value of the car and as per definition ,IDV is the maximum amount of money which your insurer would pay you as a claim if car is stolen or it becomes completely unusable.Insured declared value is something that defines the cost of premium that you pay while doing renewal.
5.What is the amount of compulsory deductible? For raising a claim against any car policy , the policyholder is required to pay a minimum amount to initiate the process which is called the compulsory deductible. The amount of the deductible various between Rs.1000 to Rs.2000 . The amount is priced in a way so that you avoid making small and your erode the value of sum assured.
6.Portability of car insurance policy: You should always remember that you can any point of time switch between insurers in your car insurance policy.if you find that particular plan from another insurer is much better than your existing insurer, you can anything switch to this new plan during the time of renewal. One things that needs to kept in mind while portability that you can always transfer the existing benefits from existing policy to the new policy and also can extra cover and facilities over and above the existing benefits just by paying the extra cost.
7.Renewing car insurance policy online: In a world where technology is empowering a lot of things in your life, car insurance is also not left aside. While doing your car insurance renewal you can always online insurance comparison websites and gets car insurance quotes from multiple insurers in one go.This removes the mistakes which might have made while buying the first policy from your dealer and the chances of your getting a fair deals increases a lot.