How Car Insurance Quotes Play an Important Role?

Here are some logical reasons why you must do so:

1. You could be missing out on deals

One of the biggest reasons why you must review the insurance quotes is to grab the deals and discounts on offer. Often, motor insurance companies offer attractive deals which help you lower your car insurance quotes. If you stick to your existing policy and refuse to explore other options, you may unknowingly turn down many reasonable offers.

Pro tip: Check the plans, their features and benefits and then choose accordingly. Even a small premium difference compounds year after year.

2. Risk factors change with time

Car insurance works on a risk system. The insurance premium you pay is directly proportional to the risk you and your vehicle have. With time, these risk factors change. For example, you may become a better driver with practice. Your car’s value may fall due to age and wear and tear.

However, unless you review the quotes, you will continue to pay the fixed premium even when you are at higher risk, such as with a novice driver and a new, expensive car. To avoid this, review the car insurance updates and make an informed decision.

Pro tip: Recalculate premium after changes in driving experience, mileage, and car age.

3. Your add-ons may not be suitable

Add-on covers in motor insurance offer extra coverage. You can get the add-ons attached to your base policy to enhance the coverage. However, every add-on comes at an added cost. Your total motor insurance premium includes the cost of these extra covers.

Hence, you need to understand whether your existing add-ons are delivering. If you feel a certain add-on cover is redundant, let go of it. On the other hand, if you find a new add-on that offers good value, get it attached to your policy.

Pro tip: Drop add-ons that no longer pay for themselves. Keep the cover that protects high-cost repairs.

4. The impact of your vehicle’s depreciation

As stated, the value of the car impacts the motor insurance quotes. Your car depreciates with time. You need to keep the vehicle’s depreciation in mind when you renew your motor insurance plan. This may not happen automatically. When you ignore the updates, you may miss noticing this and end up paying a higher premium.

Pro tip: Reset IDV at renewal to balance premium savings with fair claim payout.

5. Terms and conditions of the insurer change

Every insurance company reworks their terms and conditions from time to time. At the time of renewal, you must read these clauses to ensure they are suitable for you. If you feel the terms are too rigid and don't support your needs, consider changing them. If you ignore this, you may expose yourself to certain risks that will only come to light at the time of a claim.

Pro tip: Read renewal terms, not just the premium. Claim rules matter more than price.

6. The coverage becomes outdated

Very commonly, the coverage becomes outdated. Whether you have moved to a tier 3 city from a tier 1 city, or your car is now five years old, whether you have improved as a driver, or changed some accessories of your car, you need a policy that covers your current needs. An outdated policy may be of very little use, and you will lose out on the chance to get a new and powerful coverage.

Pro tip: Update the policy to reflect how and where the car is used today.

7. You may be missing out on newer technological aids (online claim, etc.)

It is convenient to carry on with an existing policy for years. But are you still dropping a cheque to your insurer’s office every year because you bought an offline third party car insurance policy years ago? Does your policy not have an online claim option? If you do not move with the times, you do not get the modern tech aids that define motor insurance these days. So, look forward and get a fresh quote on a fresh policy for a fresh start!

Pro tip: Ensure you opt for a smooth online claims and support experience.

8. Portability is easy

Car insurance portability is very easy in India. You can sit in the comfort of your own home and port your policy to another insurer. If you feel your current car insurance provider is not delivering, do not hesitate to port your plan.

Choose a good insurer like HDFC ERGO, who not only have excellent car insurance plans, but also has a high claim settlement record, excellent customer service and smooth and transparent policies. You will benefit by associating with an insurer like this, and your overall car insurance journey will become smoother.

Pro tip: Use renewal as a clean exit if claim experience or service has been weak.

Do you know how to transfer a Car Insurance Policy Easily?

9. Covers the risk of under-insurance

You may have rushed into getting your motor insurance plan, or it may have been provided by the retailer when you bought your car. If you did not review it at that time, you may be severely underinsured. The risk of under-insurance is quite severe, and you must rectify the mistake at the earliest. Look at the car insurance updates, analyse your current requirements, and then review the available quotes to find the best possible coverage.

Pro tip: Reviewing coverage at renewal is the safest way to correct old mistakes without waiting for a loss.