Buying an automobile has almost become a necessity if you commute regularly. It saves the cost of public transport and ensures convenience. Hence, owning a four-wheeler is an aspiration for many Indians. It is a matter of pride to buy a vehicle for a working individual. So much so that people take Loans to acquire their favorite model. But your purchase does not end with the car. You must protect it under Car Insurance.
This is mandatory to drive on Indian roads. Having the Insurance papers while driving avoids penalization. However, most vehicle owners treat Motor Insurance as an obligation. While it is a statutory requirement, it is also for your safety. It comes in handy when your four-wheeler gets involved in a mishap. Hence, treat it seriously and keep it active with Car Insurance renewal. While doing so, consider these aspects:
Insured Declared Value
IDV has a direct bearing on your premium amount. Insurers use it to compensate your losses when they are irreparable. This either includes reimbursement or replacement. A definite value determines the sum insured. Hence, they use the IDV while issuing the policy. It refers to the current market value of your vehicle. Picking the right IDV is essential to get reasonable compensation. Remember this while renewing the Car Policy.
No Claim Bonus
As an appreciation for being a responsible driver, policy providers offer NCB. You get it as a reward for completing a successful claim-free Insurance term. You unlock up to 20% to 50% discount on the premium amount for each claim-free year. This is an incremental benefit to use during Car Insurance renewal online. It lets you reduce the Insurance cost to some extent. As it is not tied to your policy, you can transfer it during the renewal.
Having used the Car Insurance Policy for a year clarifies your requirements. Renewal is the time to use this insight to make necessary changes in your coverage plan. Most policyholders opt for Third-Party Liability Cover since it is a minimal requirement. But if you want to upgrade your safety, a Comprehensive Plan is ideal. It offers extensive coverage with value-added services.
You can choose from various riders to meet your specific safety needs. The options include Depreciation, Consumables, Gap Value, Roadside Assistance, Passenger Assistance, Key Loss, Engine Safety covers, etc. These extend your protection. However, each rider contributes to a premium hike. Hence, do a cost-benefit analysis before selecting them during Car Policy renewal.
Driving a four-wheeler with an expired policy is as good as not being insured. It is also considered a punishable offense under the Motor Vehicles Act. Therefore, timely online Car Insurance renewal is necessary. The insurer sends you reminders highlighting the expiration date. Pay heed to them and take proactive steps. This saves you from lapsed policies and attracts unnecessary charges and inspection, which increases the premium.
Being a responsible driver during the Insurance term pays off in the long run. Besides NCB, it also negotiates a lower premium during policy renewal. Use this to your advantage and search for better offers with a discounted premium.