Car insurance renewal checklist to follow
Publication date:10 January, 2020, EST READ TIME: 3 MIN
If you already own a car or are about to buy one, then it is imperative that you know about the importance of owning a car insurance policy. However, as a car owner, it is important that you not just buy the right car insurance cover for your four-wheeler, but also be aware of the car insurance renewal process. Renewal of car insurance is important as it protects you against all the legal and financial liabilities arising out of damages caused to your car as well as third person or property. So if your car insurance cover is up for renewal anytime in the future, then follow the below checklist to make the best purchase.
Type of insurance cover you want: Firstly, decide on the type of insurance cover you want to insure your car with. You can either opt for a third party car cover or comprehensive coverage depending on the condition of your car and budget. If your car is new it is always advisable to buy a comprehensive cover as it provides you compensation in case of damages caused to your car as well as third person or property. The premium for a comprehensive cover is more than that of third party as a third party insurance cover only provides coverage for damages caused to third person or property.
Add-on covers: Each time you renew your car insurance policy, it is important that you check on the add-on covers that you can buy with a comprehensive car policy. Buying add-on covers provides you enhanced coverage, thereby ensuring that the claim amount does not burn a hole in your pocket. For instance, with a zero depreciation add-on, the insurance company when providing coverage does not consider the depreciation factor and provides you full compensation. Also, if you stay in a flood-prone area, then an engine cover would be a good choice to opt for as this cover covers the cost of damages caused to the engine.
No claim bonus: This is the reward that the insurance company offers you for making no claim in one policy year. You can get up to 50% discount for consecutive five claim free years. However, even if you make one claim in a year, then you can lose out on the no claim bonus. Also, not renewing the insurance policy within 90 days from the period of expiry can make you lose out on the no claim bonus as whole. Even in case you change your insurer, then you can transfer your NCB benefits by availing a NCB certificate from the old insurer.
Renew it before it lapses: In case you do not renew your car insurance cover on time, then the policy lapses.
This blog has been written by
Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry
A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.
Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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