Car Insurances 263 views
One requires equal focus on buying the car as well as protecting the same with a suitable insurance policy. It is mandatory in India to have a car insurance policy that prevents you against the losses caused to the car due to damages, thefts and legal liabilities. After buying the policy and continuing with it, the next thought that comes is its renewal. The first policy is generally bought from the car dealer and, from the time of first renewal, it becomes necessary to analyse the requirement before buying the fresh policy. Here are few points that can help you get maximum benefits on the renewal of car insurance policy.
Go online to compare quotes of insurers
While choosing the car insurance policy renewal, always compare and analyse the cover in proportion to the premiums and other charges that are deducted by the insurer. So, pick the one that offers you maximum cover on less costs.
Assess your requirements and the criticality of the car insurance before choosing the cover for your dream vehicle. The cover is generally provided under comprehensive policy and third party coverage. Comprehensive cover protects you against the damages caused to your car due to accidents, strike, riots, earthquake, cyclone, etc. While third-party cover is applicable to the injuries/damages inflicted to other people/property by your car. So, choose the policy that meets your requirements keeping in mind not to overstretch your budget with much increased premium amount.
While renewing the policy, you must consider certain add-ons like zero depreciation cover & cover for expensive spares and parts of the car, along with personal accident cover, daily cash allowance and others. These covers help you immensely and prevent excessive cash outflow from your pocket.
Insured Declared Value
Insured Declared Value (IDV) is the amount fixed by the insurer taking into consideration the market value of the car in a particular year. The amount will be provided in case the vehicle gets stolen or lost completely.
No claim bonus
No claim bonus (NCB) is a bonus provided to you on not making the claim in an entire year. You get the bonus at 5-10% of the IDV on renewal if you do not claim in a particular year. So, during the time of renewal, one must check the accuracy of NCB calculation if no claim was made in the previous year. NCB can go up to 50% in five subsequent no-claim years.
Keep an eye on whether your favourite garage comes under the network garage of the car insurer or not while shopping for policy renewal. If it is included, then you can easily make cashless claims.
Deductible is the minimum amount that must be paid for each and every claim. Deductibles generally reduce premium and thus avoid or reduce the incidence of fake and small claims.
You can always port the car insurer from one to another and also continue to get all the benefits while doing the same. Do check whether benefits like NCB, exact IDV are carried forward or not on renewal. Upon any discrepancy, you can intimate the new insurer.
While going for policy renewal, keep in mind the claim procedure as it is an indicator of how quickly and effectively the insurer responds to your insurance claims.