Cars

Tips for renewing car insurance policy

What is a car insurance?
Car insurance is taken by the policyholder in order to protect their car in an unseen event such as an accident. In India, it is mandatory to have a car insurance- third party/ liability car insurance for having a vehicle moving on the road. However, buying a car insurance once is not the end of it, the daunting task of renewing your policy from time to time also is very essential. And what is even more tiring is being able to figure out and check and choose the best quote possible to continue with the insurance provider. Thanks to companies like Coverfox sending in timely reminders, you can ensure that you don’t miss out on the renewal date of your car insurance. Once you buy a car, you have to keep renewing the car insurance, this task has been made a lot easier with the availability of online car insurance.

Here are a few tips for renewing your car insurance policy

Compare and contrast

Thanks to digitalization, every company has its own website and is catering to the needs of their customers. Today, companies like Coverfox have an online premium calculator which helps you calculate premiums, just in a matter of few minutes by providing basic minimum details. This helps you compare from various websites, it’s premium and other valid details. It becomes really convenient to compare and contrast and it helps you decide the best for you.

Calculation of correct IDV

IDV is the amount that the insurance company pays to the policyholder if the vehicle is beyond repair that is if the vehicle is stolen or completely damaged. So the question is, how do you know what is the IDV of your car? Well, IDV is calculated by knowing the current value of your vehicle in the market minus the depreciation. It is calculated by making some adjustments in the current market value of your car. The higher the premium, the higher the IDV.  It is very essential to calculate the correct IDV in order to ensure that you pay the correct premium value and not go too heavy on your pocket.

Additional Benefits

While choosing the right policy, it is also essential to choose the right additional benefits. Various additional benefits such as zero depreciation cover, engine protector cover etc. are available for you. It is important to make the right choice of additional coverage in order to ensure that you have made an effective and economical choice. For instance, the value of expensive-luxurious cars depreciates a lot in the coming years. Hence, by choosing the right additional benefit, the policy-holder will be able to save money.

NCB

NCB basically refers to a no claim bonus. NCB is rewarded to a policyholder who does not make even a single claim in the years of his contract/ period of car insurance with the company. NCB can be hiked up to a good 50 per cent over a period of 5 years. So, make sure you don’t forget to use your NCB at the time of renewal for they will help your pocket a great deal.

Careful

We all have heard it a million times and we still can’t just get enough of it. Read all the clauses of the documents carefully. It is essential to pay attention to every fine detail of the document. From terms and conditions to clauses and references, it is important to assess everything before making the decision of renewing your car insurance. Portability insurance is something that you must especially pay attention to, we usually tend to sell the vehicle and purchase a new one after a good amount of time. Portability insurance talks about transferring your policy and benefits such as NCB from your previous vehicle to the new vehicle. It helps you get a better premium value for your new vehicle.

 

Installation of an Anti-Theft device

By installing an anti-theft device in your vehicle, you increase the security of your vehicle. Thus, it benefits you in order to get discounted values for your premiums. The insurance company provides this kind of discount because your vehicle is then less prone to thefts. Hence, it is always a good idea to install an anti-theft device in your vehicle.

Timely renewal

Last but nevertheless the least, it is essential to get the timely renewal of your car done. For example, if you forget to get your car insurance renewed because of some situation, and you meet with some kind of mishap- the financial cost to fix the same might burden your pocket a lot. Also, renewing your car insurance is not a simple task, by postponing such a task until the last minute, you may risk of not making the right choice of the car insurance policy. By scheduling the renewal process before the time will help you make the right choice at the right price.

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