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Save more by avoiding these common mistakes while renewing car insurance

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Published on December 4, 2020. EST READ TIME: 3 MIN

With the process going digital, buying insurance for the automobiles has become a matter of great convenience. You can get it done with a few clicks on your laptop without any involvement of an insurance agent. But sometimes haste makes waste. You can end up making some error in judgement and therefore, experts always suggest that you should always spend some time in research. Let us discuss some mistakes you should avoid when you go to renew car insurance online.   -& Not doing thorough research : The comfort of renewing your  car insurance online can make you complacent and you might just renew it without giving it much thought. However, you are likely to regret your decision when you discover that there were far better deals being offered by other insurance companies. Now, you are stuck with a below-average policy paying a higher premium for a limited number of benefits.  Therefore, comparing different deals is a must.  Similarly evaluating the brand name of the insurer is important. Some insurers lure you with attractive offers, but in reality, have a poor claim settlement ratio. So, opt for an insurer that is verified and has great customer feedback.  It is equally crucial that you check and verify the details mentioned in your policy document as soon as you receive it to eliminate any discrepancies.

Get your timing right: Sometimes, you buy the first decent insurance available when you wait too long to renew it. You need to avoid this kind of panic buying. You can start by not ignoring the notifications sent by your current insurer regarding the upcoming renewal date. You should begin your research weeks before that date.  Once you have decided, you must buy the new insurance before the old one expires as even being a day late would mean that your insurance cover no longer has your back. You will face penalties when caught by the traffic police and would have to pay for all damages in case of an accident.  If you go for renewal, days after its expiry, the insurance company may feel the need to inspect the vehicle before insuring it and it may reduce your vehicle’s  Insured Declared Value  (IDV) or you may even see a hike in premiums. So, a stitch in time saves nine.

Going for the right Insured Declared Value: In case of complete damage or theft, the insurance company pays you the car’s agreed Insured Declared Value (IDV). If you opt for a low-priced policy, you will be settling for lower IDV. And if you opt for a higher IDV, your car insurance renewal premiums would be more. A mistake you are likely to make is picking either of them while what you should be doing is opting for the IDV that provides you with bigger coverage while its premium suits your budget.  

Forgetting to use NCB and other discounts: Another pitfall of not being careful while renewing car insurance online is forgetting to use the benefit of accumulated No-Claim Bonus (NCB). If you have not made any claim requests in your last insurance period, you have proved yourself as a safe driver and are rewarded with NCB. It can reduce your payable premium by quite a margin. However, if you wait too long to renew it, you will lose out on your bonus. Similarly, you are eligible for additional discounts if you have installed anti-theft devices to protect your car against theft. Make the most of these discounts when going for renewal.

Not buying the right number of Add-ons: Add-ons like Roadside Assistance or Zero Depreciation are complementary offers available at reasonable prices and can enhance your coverage and services. The mistake car owners make is that either they simply ignore them all or buy too many of them. In the case of the former, you are stripping yourself of a better claim pay-out and better services while in the latter, you are simply wasting money on premiums for benefits you don’t need. Years of experience of driving around should give you an idea about your add-on needs and opt only for them.

It is equally crucial that you check and verify the details mentioned in your policy document as soon as you receive it to eliminate any discrepancies.

Conclusion

In addition to those mentioned above, you should keep an eye on any deductible asked for, read the policy wording carefully, and share the accurate information details to avoid any kind of confusion when making a claim.

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

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

Mr. S.Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process."

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