Consider this probable scenario. Last year, you bought a new car and purchased a car insurance policy along with it from the car dealer itself. Maybe you were caught up in work, were out on a long holiday, were stuck in some personal work, or for any other reason, you forgot to renew car insurance.
You need to renew car insurance on or before the term completion. Failing to do so would mean your policy has lapsed. However, it is not the end of the world. If you belong to this group of individuals who have a lapsed policy in their hands, this festive season might be the apt time to renew car insurance.
But before you renew car insurance, here are some tips that will help you with your renewal in a more efficient manner. Insurance companies might have some offers during the festive season. You must have your basics clear to make the most of such offers and discounts.
1. Insurance Type
Whether you are buying a new policy or renewing an existing one, there is a common question that all policyholders face – which type of policy should they opt for? On one hand, they can buy a third-party liability policy which offers minimal coverage but is light on the pocket. On the other hand, they can opt for a comprehensive policy which costs slightly more but offers enhanced coverage. Depending on what your needs are, you can choose between either of them. However, a comprehensive policy is recommended.
2. Cashless Facility
One of the biggest advantages of a vehicle insurance policy is that you can opt for cashless service at the insurance company’s network garages. Thus, taking a look at the list of garages under an insurer’s network would help you with the final pick.
3. IDV
This list would not be complete without IDV or Insured Declared Value. Simply put, it is the current market value of your car. If your car was damaged beyond repair or stolen, IDV is what your insurer will pay you. Needless to say, it impacts your premiums directly.
4. Riders
You can opt for a rider or an add-on to enhance of your policy’s coverage by paying an additional premium. For example, the most popular add-on is a zero-depreciation cover. When you opt for a claim, insurers usually consider the depreciated value of spares and repairs. With this cover, the insurance company will not consider the depreciation amount, thus saving you money. Other riders include engine cover, hydro-static cover, NCB cover etc.
5. Portability
If you opt for online car insurance renewal, you can port from one insurer to another easily by keeping all of the earned benefits. This is a good way to get out of an unproductive policy if you have had an unpleasant experience with your previous insurer.
6. Claims
It is a good habit to go through the claims procedure of an insurer, check user reviews, and be aware of the average turnaround time before finalizing an insurance company.
7. Renewal
During online car insurance renewal, you can ask insurers for a quote by providing basic details such as IDV, deductibles, NCB, riders etc.
8. NCB
If you did not claim your previous policy, an NCB discount is yours for the taking. The discounts are applicable on the own damage component and start from a minimum of 20% and can go up to 50%.
9. Compare
During renewals, it is important to compare policies before buying. It ensures that you buy a low-priced policy without missing out on most of the features.
Car insurance renewal of a lapsed policy is a bit tricky but not too difficult. Here are the steps.
- Finalize an insurer and a policy that would best suit your needs and requirements.
- Fix an appointment with a surveyor to get your vehicle inspection done. In case you are in a hurry, ensure to do regular follow-ups, as this process takes about 3-5 days.
- Insurers usually assign third-party surveyors for the job. They will visit your residence to inspect the vehicle and your policy approval largely depends on it. Under most circumstances, you will end up paying a nominal fee for the inspection.
- Once the inspection is completed and policy request is approved, you can proceed with your car insurance renewal at the earliest.
10. Renew Before Expiry
It is better to renew your car insurance policy a week before its expiry date to avoid any last-minute hurry. You might even get some discounts owing to the festival season. Thus, such a time is ideal to renew your lapsed policy.