CAR INSURANCE TIPS: Want to benefit from car insurance? 7 things to keep in mind while renewing

The number of people who do not own a car is decreasing. Those who own a car also take car insurance anyway. Insurance is a financial tool that provides protection against car accidents or damages caused by the car. Damages to the vehicle due to theft or natural calamities are also covered.

The insurance sector is going through changes day by day. Today, things have changed to the point where you can get insurance based on the use of the vehicle. But still there are those among us who spend a lot of money on insurance due to lack of knowledge. Below are some things to consider for financial benefit when taking out, or renewing, car insurance.

Renew the policy on time: The expiry date of the policy should always be kept in mind. Car insurance needs to be renewed on time. No claim bonus is eligible if you have not made any insurance claim during the year. This discount is not available if you are renewing your insurance after expiry. Make sure you get the No Claim Bonus at the time of renewal.

Aspects of No Claim Bonus: No Claim Bonus is a reward given by the insurer if the user does not claim for a specified period. 20 percent to 50 percent no claim bonus for 5 years. This discount is available at the time of renewal. This is a good way to reduce premiums. Make sure the No Claim Bonus is calculated correctly while renewing the insurance.

Penalty: Driving a vehicle without at least third party insurance is an offence. If you want to drive a vehicle on public roads, you need at least third party insurance. Otherwise, the vehicle owner may be fined up to Rs.2000. Repeated offenses can result in cancellation of license and imprisonment with a fine of Rs 4000.

Things to note:

Some insurers offer a grace period of 30-90 days to renew the policy even if it expires. But your vehicles will not be covered during this time. Also no claim bonus will be gone.

Update the plan:

Change your insurance to the latest available compatible plan at the time of renewal. Newer plans offer better financial benefits if usage is low. A comprehensive plan is always better. This guarantees you better protection during an accident.

Appropriate Insurable Declared Value (IDV):

The insured declared value is the current market value of the car. This is the maximum amount the insurer will pay if the car is stolen or damaged in an accident. IDV is a crucial factor when calculating the premium of car insurance. A higher IDV indicates a higher premium. Always choose an IDV that offers good coverage and a premium that suits your budget.

Voluntary Deductible:

Voluntary deductible is the amount paid by the policyholder from the claims contribution. If a policyholder agrees to a higher deductible, the higher the insurance premium, the lower the deductible. If you have a good driving record you can opt for a higher deductible.

Check the network of garages: 

It is difficult to wait for payment from insurers during an emergency. So, check the network of garages contracted with the insurer for hassle-free and cashless claims. Such information will be advertised on the official website of the companies.

Choose the right add-ons: 

Choose only the right add-ons for you and your vehicles. If you look at many people's insurance today, you will see many unnecessary additions. Due to this your premium cost is higher. Choose add-ons like Zero Depreciation, Passenger Cover, No Claim Bonus Protection, Roadside Assistance etc.