As per the Motor Vehicles Act 1988, every car owner must have at least third-party four-wheeler insurance, and if your car’s insurance expires, you must consider its renewal sooner rather than later.

According to a report by the Insurance Information Bureau, as many as 57% of Indian vehicles were uninsured in FY 2019. Insurance providers have enabled online car insurance renewal to reduce the number of uninsured individuals and make the insurance process quick and convenient for car owners.

However, before you renew car insurance, you must acquaint yourself with the essential factors to make an informed insurance decision. Always prefer cheap SR-22 insurance when you are planning to take car insurance.

Factors to Bear in Mind at the Time of Four-Wheeler Insurance Renewal

Although third-party insurance for four-wheelers is mandatory, several individuals opt for a comprehensive policy for complete protection. Most individuals only think of their four-wheeler insurance at the time of auto insurance resource policy renewal because when you purchase a new car, your policy is provided by the dealer. However, after expiration, car insurance renewal is when car owners must analyze their insurance needs and purchase a suitable policy. Here are 10 things you must bear in mind to make an informed insurance decision: -

1. Type of Insurance

At the time of four-wheeler insurance renewal, there are three types of coverage you can choose from: -

  • Third-Party Insurance: This is the mandatory insurance for a four-wheeler that you have to purchase. The third-party insurance covers injuries and damages to the third party in the event of an accident caused by you.
  • Standalone Own Damage Cover: This only covers the damages caused to the insured car. It does not cover any third-party liabilities. You can buy this policy if you have an existing third-party plan and wish to expand the coverage. However, just having your own damage cover will not satisfy the legal requirement; you must also have mandatory third-party cover.
  • Comprehensive Insurance: Third-party insurance needs to be an adequate cover as it does not cover the cost of damages to your vehicle. The standalone damage does not cover any third-party damages. Buying both together does not let you enjoy any add-on covers. This is where a comprehensive car insurance policy helps. Having comprehensive four-wheeler insurance compensates for the damages to your car in the event of an accident. Also, it protects your vehicle against the threat of theft as well as against damages caused by natural calamities, along with a third-party cover. Moreover, you can further enhance the coverage with a choice of add-ons.

2. Insurance Riders

Insurance riders are add-ons to your essential cover for an added layer of protection. Some of the standard add-on options that you can choose for comprehensive protection are:
  • No Claim Bonus (NCB) Protection: The NCB is a discount offered on your premium amount if you don’t make a claim for your car in the previous year. This discount is available at the time of car insurance policy renewal. To protect your NCB, you can get the NCB protection, which makes you eligible for the discount despite making claims.
  • Zero Deprecation Cover: This cover is especially recommended for high-end cars with higher deprecation than the premium payable. With this cover, you can get reimbursed for the deducted depreciation cost for your vehicle.
In addition to the options above, you can choose other add-ons based on your insurance needs.

3 Cashless Claim Settlement

Insurance providers are affiliated with garages and repair centers. Check whether the garage you typically visit is affiliated with your insurance provider for convenient and cashless claim settlements.

4. Insured Declared Value

The Insured Declared Value or the IDV is a fixed amount decided by your insurance provider in the unfortunate event of loss or theft of your vehicle. IDV is the current market value of your car.

5. Deductibles

Every time you make a claim, you need to pay ₹1000 or ₹2000 to your insurance provider. The idea behind deductibles is to reduce the possibility of creating a fake claim.

6. No Claim Bonus

The No Claim Bonus is a reward by the insurance provider to the policyholder for not making a claim in the previous financial year. If no claim is made in a year, a No Claim Bonus in the form of a discount on the premium is provided when you renew your car insurance. So, the next time you type “renew my car insurance” on your search tab, check the applicable NCB discount, which can go up to 50% for 5 consecutive claim-free years.

7. Renewal Car Insurance Quote

Several factors affect the premium when you renew your car insurance. Some of them are as follows: -
Insured Declared Value, which is the current market value of your car
The add-on riders have chosen your primary insurance for four-wheeler
Deductibles depending on the insurance plan selected
No Claim Bonus, etc.

8. Portability

You might choose to change your insurance provider at the time of your four-wheeler insurance renewal, and you need to check the portability policy to ensure you don’t miss out on the benefits. When you switch to the next provider, check whether all your benefits have been duly carried forward.

9. Claim Settlement Process

A hassle-free claim settlement process is an essential indicator of the authenticity of your insurance provider. Before you opt for car insurance renewal online, check the claim settlement process and ensure it is seamless.

10. Online Car Insurance

With a simple “renew my car insurance” search, policyholders can revive their policy from the comfort of their homes. You can even compare different offerings to ensure you get a suitable cover at a reasonable rate. Moreover, the online procedure for policy renewal is very convenient. The policyholder only needs to input their vehicle details on the insurance provider’s website and make an online payment for the chosen policy.

To conclude

Car insurance is an important document that secures you while you are on the road. While it is recommended that you renew your policy before it expires, you can even get your car insurance renewed after expiry by paying the late fees.