(Last Updated On: November 13, 2019)

One common mistake done by people who buy a new car is that they miss out on one important facet, which is to purchase a car insurance policy. While they look at the major factors like fuel efficiency, engine power, style, and comfort, it is equally important to buy car insurance policy to get coverage against losses that they might have to incur in case of an unlikely incident.

Having a car insurance policy is also mandated by the law. As per new traffic rules, not having car insurance will make you pay a challan of Rs. 2000 or imprisonment for up to 3 months or both for the first time. Accordingly, if you are caught without car insurance for the second time, you’ll be charged a fine of Rs. 4000 or imprisonment up to 3 months or both.

At the end of your policy tenure, you need to renew it to continue getting its benefits. During the process of car insurance renewal, you might get puzzled by the numerous conversations that you have with the agents to decide which is the right policy for you. Fret not!

Car Insurance Renewal Process

We have jotted down a list of things that you should consider during the car insurance renewal process: 

1. Follow Online Policy Renewal Process

You should know that with the latest technology and innovations, you do not need an agent for your car insurance renewal. Insurance companies have made the process of paying the premium and renewing the policy easy for you. You can visit the website of the insurance company of your choice, and choose the plan that suits your requirements.

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Once you have gone through the websites and compared the policies offered by various reputable companies, you can renew your policy or buy a new one from a different insurer. Doing this research at the time of policy renewal is important as your needs might have changed in between. You have the freedom to choose the add on(s) that you want, instead of paying for the car insurance policy renewal which is told by the policy agents. 

2. Buy a Policy from a Different Insurer, if needed

Not many people know that we are not limited to choosing the same car insurance policy or the policy provider while renewing car insurance. You are open to select a different insurance provider or a company that meets your current needs. Also, you can choose various add-ons, like zero depreciation while renewing your policy. This helps you broaden your choices and fit in your car insurance policy according to your requirements. 

Car insurance renewal policy

3. Ask About the IDV of your Car

The IDV (Insured Declared Value) is the value of your car’s price according to the current market state after subtracting the depreciation amount. This value decides the maximum amount that you get in case of an unlikely mishap or event, like a car heist or irreparable damage to the car. So, you must be aware about the appropriate Insured Declared Value of your vehicle because the premium is directly proportional to it.

For example, if the IDV of your car is high, then the premium that you must pay will also increase. You can check with your insurer to know about your premium amount and the chosen IDV. 

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4. Get Discount on Anti-Theft Devices Installed

Another point to keep in mind when you renew your car insurance is that having an anti-theft device installed gets you a good discount on the premium that you must pay. For instance, cars that are approved by the Automobile Research Association of India (ARAI) and have an anti-theft device are the ones that can get this discount. So, you can ask your insurance company to know about this discount and accordingly get the benefit during your car insurance renewal.

This was all about a car insurance policy renewal. If you have any other points to include, feel free to discuss.

Things You Should Know When Renewing Your Car Insurancehttps://fintrakk.com/wp-content/uploads/2019/11/Car-insurance-renewal-1024x683.jpghttps://fintrakk.com/wp-content/uploads/2019/11/Car-insurance-renewal-150x150.jpgadminLifehackscar insurance,car insurance policy,car insurance renewal,insuranceOne common mistake done by people who buy a new car is that they miss out on one important facet, which is to purchase a car insurance policy. While they look at the major factors like fuel efficiency, engine power, style, and comfort, it is equally important to buy...Personal Finance Blog