What you must remember during Car Insurance renewal

Four-Wheeler owners must have an authorised Car Insurance Policy to drive their vehicle on Indian roads. Based on studies, more than 30% of owners do not have a valid Third-Party Plan. Some of them break the regulatory norms by carrying fake or expired insurance papers. Due to this, many third-party liability claims do not get attended to. The prime reason is these individuals do not hold Four-Wheeler Insurance.

The percentage can be higher in smaller towns and cities as agents do not sell or promote Third-Party Plans as they do not provide high incentives.  Even though Third-Party Liability Insurance is mandatory in India, most owners go for a Comprehensive Policy to protect themselves from unforeseen disasters on Indian roads.

These are essential points to be mindful of during Car Insurance renewal. You must understand the details as you may have bought the first one through the dealer from where you bought your vehicle. Thus, remember the following points to choose the best policy during renewal:

Type of plan

Choose from a Comprehensive or Third-Party Liability. Third-Party Liability Policy is mandatory, including injuries caused to others in an accident but does not cover damage to property or vehicle. A Comprehensive Plan includes self-vehicle damage as well.

Cashless facility

Verify if the insurance provider affiliates with your favourite garage. In all probability, they have a tie-up for cashless claims. These are simple to settle than the ones which involve reimbursements. It would be best if you took advantage by going for Car Insurance online renewal.

Add-on features

There are add-on features that are available with standard 4 Wheeler Insurance, and some of them are very helpful:

Zero Depreciation cover: This is a must-have add-on for expensive cars with a higher depreciation amount than the additional premium payable.

Hydrostatic Cover: It covers subsequent loss due to floods during natural calamities.

Roadside Assistance: This add-on is a big saviour when your vehicle breaks down in the middle of the road. Avail of the services like towing, minor repair work, fuel, etc.

Insured Declared Value

IDV is the principal amount that the insurer estimates for the ongoing year’s market value of the vehicle they provide at the time of theft or total loss.

No Claim Bonus

It is a feature that offers a bonus when you do not claim for an entire year. You may get anywhere between 10% to 50% discount on your premiums during Car Insurance renewal. This is if you have made no claims for the entire year. On renewal, check NCB, especially if there were no claims in the previous year. The NCB gets carried forward, which results in a lower renewal premium.