Driving on uneven roads and hectic traffic comes with consequences. A slight negligence or mishap can result in financial losses. This is why car insurance is a mandated policy under the Motor Vehicles Act.
Dealers most likely provide your first insurance policy unless you choose to buy it personally. Car insurance renewal is an excellent opportunity for you to modify your existing plan for greater benefits. You could stick with the same policy provider or switch at this time. It is best to learn about different offers before renewal.
Here are some of the things you should know:
Plan type: You get two kinds of four-wheeler insurance: the third-party and a comprehensive plan. The former is mandated and offers limited coverage, and the latter provides additional features and protects third party damage plus your own. You can switch to the policy of your choice during renewal.
Expiry date: It is always advisable to not wait till expiry for doing car policy renewal. It affects your no-claim bonus and lapses the plan. You also get charged with penalties and fines in case of extreme delay. These costs get added to your renewed premium amount. You may even have to apply for a new policy and renegotiate the premium amount. You can avoid all this with timely renewal. Policy providers usually send you notifications to alert on the same.
Cashless facility: This service enables you to get instant assistance for your car repair during accidents. The insurance provider directly pays the claim amount to the garage, provided that it comes in their authorised network. It is best to check this in your existing plan. You can change it if you consider the facility valuable for you.
Add-ons: It is best to check the additional features provided for your auto insurance. These services offer enhanced benefits with additional premium. Online car insurance renewal is a great time to check them out. This is only applicable if you switch to a comprehensive plan.
No-Bonus Claim: It is an incremental benefit offered by insurers. You get it when you complete your policy period without claims. It is to appreciate your efforts in safe driving and following traffic regulations. You are eligible for it even if you change your car or policy provider.
Car Value: Your premium gets recalculated depending on your two-wheeler's inspection. This is done to check its value after depreciation. You can proactively examine this against the car's market value. It enables you to counter the quotation made by the insurer. Also, consider the modification and upgrades you made during the previous year to get the exact estimate.
There are prominent factors that affect your four-wheeler insurance renewal; considering them before the process gives you better deals and reduced premium.