Avoid These Common Mistakes When Renewing Your Car Insurance

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Renewing your car insurance is as important as keeping your car in good condition. It’s like giving your car a protective shield against unexpected mishaps on the road. But just like driving, there are some common mistakes people make when renewing their car insurance. 

This guide will take you through the process of renewing your car insurance without stumbling into these common mistakes.

Understanding Car Insurance Renewal

Car insurance renewal is the process of extending your existing car insurance policy for another term. It ensures your vehicle remains protected against damages, theft, or accidents. There are two types of car insurance available in the market:

  • Third-party insurance covers damages caused to other people or their property by your vehicle. It’s a mandatory requirement by law in many countries, including India.
  • Comprehensive insurance, on the other hand, covers damages to your vehicle as well as third-party liabilities. It provides broader coverage and gives you safety and security on the road.

Now, let’s explore some common mistakes to avoid during the car insurance renewal process:

Common Mistakes When Renewing Your Car Insurance

  • Missing the Renewal Deadline:

One of the most common mistakes people make is missing the renewal deadline. Driving without valid insurance is risky as well as illegal. To avoid this, mark your calendar or set a reminder well in advance of your policy expiry date. Renewing on time ensures continuous coverage without any gaps.

  • Ignoring Policy Coverage:

When renewing your car insurance, don’t renew the same policy without reviewing your coverage needs. Take some time to assess your requirements and make necessary adjustments. For instance, if you have only third party insurance online, consider upgrading to comprehensive coverage for better protection.

  • Underestimating Insured Declared Value (IDV):

The Insured Declared Value (IDV) is the maximum amount your insurer will pay in case of total loss or theft of your vehicle. It’s crucial to set the right IDV to avoid financial losses. While a lower IDV may reduce your premium, it can also leave you underinsured. 

On the other hand, a higher IDV may lead to higher premiums. Use online calculators or consult with your insurer to determine the optimal IDV for your vehicle.

  • Neglecting No Claim Bonus (NCB):

If you have a claim-free year, you’re entitled to a No Claim Bonus (NCB), which can significantly reduce your premium. 

However, many people forget to utilise their accumulated NCB during renewal. Make sure to inquire about your NCB eligibility and avail the benefits to enjoy lower premiums.

  • Skipping Add-On Covers:

Add-on covers provide additional protection beyond your basic insurance policy. However, not all add-ons may be relevant to your needs. Before renewing, review your add-on covers and drop any of them you no longer require. 

It can help reduce your premium without compromising on essential coverage. Hence, skipping add-on covers is not a wise decision to move forward with.

  • Overlooking Anti-theft Devices:

Installing anti-theft devices in your vehicle enhances security and qualifies you for discounts on your insurance premium. These devices are certified by authorities and help minimise the risk of theft. Don’t overlook this opportunity to lower your premium while safeguarding your car against theft.

  • Not Considering Voluntary Deductibles:

Voluntary deductibles allow you to share the cost of a claim with your insurer. By opting for a higher deductible, you can lower your premium. 

However, it’s essential to strike a balance between the deductible amount and potential claim expenses. Evaluate your financial situation and choose a deductible you can comfortably afford in case of a claim.

  • Failing to Update Personal Information:

During the car insurance renewal process, it’s essential to update any changes in your personal information, such as address, contact details, or vehicle usage. Failing to provide accurate information can lead to complications during claims processing. 

Additionally, certain life events, such as marriage or changes in occupation, may affect your premium rates. By keeping your insurer informed about these changes, you can ensure that your policy remains up-to-date and tailored to your current circumstances. 

Always double-check the information before finalising your renewal to avoid any discrepancies that could invalidate your coverage.

Conclusion

Renewing your car insurance doesn’t have to be challenging with pitfalls. By avoiding these common mistakes and following the tips mentioned above, you can simplify the renewal process and ensure adequate protection for your vehicle. 

Remember, car insurance is not just a legal requirement; it’s a financial safeguard against unforeseen circumstances. So, take the time to renew your policy wisely and drive with confidence, knowing that you’re covered.

*Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

*Standard T&C apply

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