6 Things to Contemplate While Renewing Your Car Insurance
New Delhi : So, you’re looking into renewing your car insurance. You could be a first-time renewer or someone who isn't satisfied with your current car insurance and you wish to switch. You can rest assured that you’re at the right place.
Renewing a car insurance isn’t just about repaying the premium amount to restart a basic backup that your car requires. It is a mandatory requirement by law for you to have an active car insurance policy. Furthermore, car insurance is more than just a compulsion. It is a financial back-up and support system that can ensure that any harm to your car or anyone else’s vehicle is not a financial burden that you have to bear all on your own.
However, to make sure that your car insurance is one that can actually offer a helping hand, you need to keep in mind various factors such as the type of car insurance you choose, its add-ons, its IDV, its NCB and much more. Hence, understanding the parameters that you need to contemplate while renewing your car insurance is a vital step on the way that can be a blessing in the long run.
6 Things to Consider Before Renewing Your Car Insurance
Renewing your car insurance is a crucial task that you should not neglect and its vitality further emphasises the fact that a lot of consideration and thinking should go into deciding all the aspects of car insurance renewal such as add-ons, IDV, CSR and more.
Hence, to help you with a gentle headstart into this analysis, here are some factors you should consider before renewing your car insurance.
Car insurance is essentially found in three variants: standalone car insurance, third-party car insurance and comprehensive car insurance. A standalone car insurance insures your vehicle only, while a third-party car insurance provides coverage for the damages inflicted on another individual’s vehicle who was involved in the accident.
Comprehensive car insurance covers both. It insures your car from damages and the vehicle of another individual that could have endured a few blows during a collective accident. With these options available, it is important for you to choose the car insurance that best serves your expectations and requirements as a car owner.
Add-ons can be included to all three variants of car insurance. These add-ons are essentially other supporting insurances that you add to an existing car insurance to enhance the extent of the areas of coverage.
These add-ons could be health related, such as insurance to claim coverage against accidental injuries or hospitalisation. Add-ons could also be policies that are generally associated with cars, like a road trip cover or a travel cover. Such add-ons significantly enhance the level and extent of coverage that you could receive through your car insurance, and hence, during renewals, it is crucial to consider the kind of add-ons that would be best for you.
Insured Declared Value
Your Insured Declared Value or IDV is one of the most important factors to consider while renewing your car insurance. The insured declared value determines the coverage amount you can claim from the insurer in event of car theft or damages that cannot be repaired.
The IDV is calculated based on the age of your car, its current condition, its total travel distance till date, etc. In this case, IDV is crucial to the renewal of your car insurance because the premium amount you pay is directly proportional to the insured declared value. The higher the value, the higher the premium amount you will be expected to pay.
A no-claims bonus is a lot like a reward you get through car insurance. It is basically a discount you can earn by not claiming coverage through your car insurance on a long-term basis.
This could bring you a 20% discount for the first year of making no claims while the rate is hiked to 50% for not claiming any coverage for 5 consecutive years. While renewing your car, you need to make sure that you keep tabs on your NCB, regardless of whether you decide to change your insurer or not.
Claim Settlement Ratio
Much like the IDV, the claim settlement ratio is directly proportional to how reliable and trustworthy a car insurance provider is. The claim settlement ratio or the CSR refers to the rate of the claims a car insurance provider can settle within a given year. It is a comparison between the number of claims they could settle and the number to claim applications they received.
Simply put, if you wish to find a very reliable insurance company to switch to during renewals, find a provider that has a high claim settlement ratio.
This is probably the very first comparison you make. Aligned to this factor is the extent and level of coverage you can acquire or claim at a premium rate that you are comfortable with paying consistently. This directly determines just how happy an insured customer can be with their car insurance. This includes the premium price you pay for your basic car insurance along with add-ons. This premium price is calculated on the basis of how good your car’s condition is, your car’s cubic capacity, IDV, no-claims bonus and more.
How to Renew Car Insurance Online
The wisest decision you can make as a car owner is to maintain the discipline of renewing your car insurance as and when it is time to do so. However, since you probably are going through a renewal process for the first time, let’s talk about how you can renew your car insurance in one of the most convenient ways, which is renewing it online in the comfort of your home.
Ponder upon what you expect from your car insurance based on your insurance and add-on needs.
Go to the insurer’s website or renewal portal.
Enter all the information you will be asked for, which could include basic details of your car and the expiring insurance.
Choose the type of insurance you’d like.
Inform the insurer, through their renewal portal, of all your preferred add-ons and the IDV.
Complete the premium amount payment which depends on IDV, add-ons, the insurance type and more.
You will receive all the documents related to your car insurance renewal on the registered email address and it is always a wise move to maintain hard copies of these documents to keep with yourself and in your car as well.
A Quick Wrap-Up
It is okay for you to not have a comprehensive idea of all that goes into the renewals of car insurance. However, now that you have learned all that is to be considered before you initiate your car insurance renewal process and the steps that you can follow to renew the insurance, you can ensure that your renewal will be most fruitful and benefitting to you. You can renew your car insurance with a favourable premium price, IDV, NCB, add-ons and more. Hence, you can be assured that your car, yourself and any third-parties involved are thoroughly protected against unexpected financial stressors surrounding your car.