Things to Keep in Mind For Car Insurance Renewal Checklist For 2026

Posted on: Jan 5, 2026 | 3 mins | Written by: HDFC ERGO Team

Things to Keep in Mind For Car Insurance Renewal Checklist For 2026

Car insurance is an essential tool that secures your vehicle against unforeseen damage and keeps you financially protected. Additionally, it is a crucial document required to drive your vehicle on public roads legally. In India, car insurance has evolved significantly over the years, and understanding its core concepts and elements is essential to ensure the best coverage for your vehicle.

A valid car insurance policy is not only a legal must-have in India; it’s your primary financial shield against accidents, natural disasters, theft, and unexpected repair bills. As policies evolve and risks keep changing, renewing your car insurance without reviewing the details can leave you underprotected.

Before we get to the checklist, let’s understand which car insurance to buy in 2026.

Which Car Insurance to Buy in 2026?

Here are the three main options of car insurance policies to choose from:

1. Third-party car insurance:

The third party car insurance only provides third-party liability coverage, which is the mandatory minimum legal requirement under the Motor Vehicles Act 1988. It covers liabilities arising from third-party bodily injuries, fatalities or property damage caused by the insured vehicle in an accident.

2. Standalone own damage cover:

The standalone own damage cover only provides coverage for repairs and replacements of your vehicle if it sustains any damage or loss due to accident, theft, natural disasters, fire and other insurable perils. It is an optional plan and is designed to be added on top of an existing third-party plan to ensure all-around protection for your car.

3. Comprehensive car insurance:

The comprehensive car insurance offers the most complete protection by bundling the mandatory third-party cover with the own damage cover. It handles third-party legal liabilities and damage or loss suffered by your vehicle due to a covered risk.

The third-party car insurance is the cheapest but provides only the most basic legal protection. So, if your goal is to enter 2026 with optimal and exhaustive coverage for your car, you should opt for comprehensive car insurance. If you already have a long-term third-party plan, invest in a standalone OD cover to upgrade to 360-degree protection.

Top 15 points to keep in mind while renewing your car insurance in 2026:

Here is the Car insurance renewal checklist to follow, which talks about the various types of policies, add-ons, etc. However, here are the top 15 points to keep in mind while renewing your car insurance policy in 2026 and why:

Checklist Item	What you must review	Why does it matter?
Base Policy Type	Decide between Third-Party (TP), Standalone Own Damage, or Comprehensive	Third-party is legally mandatory. Standalone Own Damage policy is available ONLY if you have a valid TP-only plan. Comprehensive plans provide broader protection against accidents, floods, theft, and natural disasters.
Mandatory Long-Term Third-Party Rules	Check if you already have a 3-year TP plan from a previous purchase	New cars come with compulsory long-term TP. During renewal, you only renew OD yearly. Knowing this helps avoid duplicate TP purchases.
Coverage Needs Based on Your Location	Assess risk for traffic density, theft rates, waterlogging, monsoons, and highway travel.	The road conditions vary drastically by city. Mumbai floods, Bengaluru traffic, Delhi theft zones, Chennai monsoons; all require tailored coverage.
Claim Settlement Ratio (CSR) and process	Higher than 95% claim settlement ratio and a smooth claim process	High CSR means higher chances of a smooth claim. In India's fast-growing motor insurance market, reliability matters more than just pricing.
Claim Process		HDFC ERGO offers a complete online, paperless, and fully digital experience to expedite claims and let customers get their vehicles repaired at their convenience.
Cashless Garage Network	Verify if you have a garage near your home, office, and usual routes	A strong network of 9000+ garages in India is crucial for convenience and fast repairs. Cashless garages save time during unexpected breakdowns and accidents.
Reimbursement Claims	Check the reimbursement claims process	Check whether there is an option for an advance payment facility for high-value reimbursement claims to customers and workshops to ease the upfront payment.
Insured Declared Value (IDV)	Set IDV close to your car's current market value	IDV affects your total-loss payout. Too low and you get underpaid; too high and you overpay premiums. The IDV affects the claims payout.
Essential Add-Ons to Reassess	Zero Depreciation, Engine Protection, Return to Invoice (RTI), Roadside Assistance (RSA), NCB Protect, Consumables	Newer cars benefit heavily from these. Engine Protect is vital in monsoon cities; Zero Depreciation suits vehicles under 5 years; RSA is useful for highway travellers.
No Claim Bonus (NCB)	Check eligibility and NCB % earned from previous years	NCB reduces Own Damage premiums. If switching cars, ensure your NCB Certificate is transferred within 90 days of sale. This is often missed by buyers.
Personal Accident (PA) Cover	Confirm if your existing PA cover is still active	?15 lakh PA cover is mandatory for every owner-driver. If you already have one from another vehicle policy, you don't need to repurchase it; you just need to provide proof.
Voluntary Deductibles	Decide whether opting for one suits your driving habits and finances	A voluntary deductible lowers premiums but increases your share of costs when you file a claim. Useful for experienced drivers who rarely claim.
Policy Exclusions	Review what's not covered: drunk driving, consequential loss, electrical wear, and mechanical breakdown.	Many claim rejections happen due to common misunderstandings about exclusions. Reviewing them prevents surprises.
Correct Personal & Vehicle Details	Verify RC details, engine and chassis number, address, and Personal Accident cover details.	Mistakes in documents can delay claims or lead to disputes. Renewal is the best time to correct errors.
Documents Required for Renewal	Keep RC, previous policy, PUC, DL, and ID/address proof handy (especially when switching insurers)	Indian insurers often request these during verification. Having them ready speeds up approval and issuance.

Top 5 things to keep in mind if you wish to port your car insurance plan in 2026:

Checklist Item	What to Keep in Mind	Why It Matters
Timeline	It is best to start the porting process 45 days before renewal and well before the policy expiry date.	It helps to prevent policy lapse, avoids inspection delays, and keeps coverage continuous.
No Claim Bonus Certificate	Ask your current insurer for the No Claim Bonus certificate or retention letter.	Required to transfer your accumulated NCB; issuing can take 24-72 hours.
Documents	Keep all documents ready-car's registration certificate, existing policy, Pollution under control certificate, driving licence, KYC documents, and previous NCB proof.	It helps smooth the verification process and speeds up porting.
Proposal Form	Fill the proposal form carefully-update vehicle details, past claims, PA cover status, add-on choices and deductibles.	Errors can lead to queries or delays in issuing your renewed policy.
Vehicle inspection	Check if an inspection is required. Inspections are usually required for lapsed policies or data mismatches.	Policy is issued only after a successful inspection, so timing is key.

Conclusion:

Car insurance is the crucial financial shield that stands between you and unwanted costs arising from third-party liabilities and own damages to your vehicle. If you are planning to buy a new car, renew an existing policy, or upgrade to better car insurance coverage in 2026, make sure to follow this detailed checklist before finalising the policy. By investing in the right plan, Indian car owners and drivers can ensure both legal compliance and robust protection for their vehicles.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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