The Buyt Desk
Motor or car insurance much like other basic insurance policies is an annual cover. This insurance also needs to renew when get expired. According to the Motor Vehicles Act, all vehicles that are running on roads need to have a third-party motor insurance policy. However, it depends on you whether you want to buy a comprehensive policy or want to take add-ons for a good maximum coverage.
Before you renew your car insurance, you must know the following-
-
Determine Car’s IDV
IDV or Insured Declared Value is the maximum value you will receive when your car gets lost or have complete vehicle damage. This is an important factor to consider while renewing the car policy as IDV affects the premium paid amount. However, many companies provide lower premiums during motor car insurance policy renewal. But, note that a lower premium also comes at a lower IDV expense. This results in inadequate coverage and negatively affects the subsequent claim amount.
-
Check NCB
NCB or No-Claim Bonus is a discount given when the insured doesn’t report a claim while preceding the complete annual policy term. In India, general insurance companies provide up to 50% discount as NCB benefit for 5 successive years of getting no claims. No-claim bonus is just available on the OD (Own Damage) premium rather than the total premium payable that consists of the 3rd party premium amount.
-
Carefully Read T&Cs
Thoroughly and carefully read the terms and conditions during renewal to prevent misinterpretation as it may affect the coverage you’ll be provided. When you renew the policy, you can expand the coverage in case you don’t find the existing policy sufficient for your requirements. Or move the policy to other insurers for add-ons, great coverage, and service without losing NCB.
-
Access Network Garages List
Every car insurance company has links with garages available all across the nation. These garages are most often recognized as insurance company network garages. Car insurance companies provide cashless motor insurance policies for repairs at network garages to simplify the claim settlement process. The partner garages straight settle the bill in a cashless way with the insurance company. As an outcome of it, the policyholder doesn’t need to pay the repair amount except for his share of liabilities.
-
Add-Ons for Additional Benefits
To alleviate losses that are not often covered by standard motor insurance coverage, a policyholder can use add-ons. For example, cover for consumables, basic roadside assistance, depreciation reimbursement, emergency medical expense, engine guard, NCB protection, enhanced personal accident cover for passengers, inconvenience allowance, and lots more. These add-ons that can be covered in a vehicle policy for small charges can prove highly advantageous.
Conclusion
Buying car insurance is an important decision. Hence, you must completely examine all the options available in front of you along with the must-have add-on coverage. Timely renewing the car insurance policy will need a thorough evaluation to enjoy the eligible benefits.
