Today’s fast life and all the ‘busy-ness’ tend to make us forget a lot of significant things. Forgetting to renew the car insurance on time is often one of them. Buying car insurance and not renewing it on time could cause trouble for the insured. Not having an active car insurance plan is equal to not having one. Having an expired plan means if something happens to your car, you would not be eligible for any benefits/coverage offered by your plan. However, these days, insurers have come up with several online reminder options that help remind you to renew your car insurance on time.
In addition, renewing your car insurance plan also allows you to opt for other insurers if you are not happy or satisfied with your current insurer. Moreover, this process is simple owing thanks to technology. Having said that, there are certain factors that must be taken into consideration while renewing your car insurance plan.
Assess the plan type: If you are currently unhappy with your existing type of plan, then the renewal period is the ideal time for you to consider switching to another plan. For example, if you have opted for a third-party plan and wish to switch to a comprehensive plan, then this can be done during the renewal process.
Compare the different available options: Why stick to one plan if you have hundreds to choose from? If your current plan doesn’t offer you the required coverage/support/issue resolution, then you can always consider switching to another plan while renewing your plan. This can be done easily by comparing a wide range of plans available online and finding the best one that fits your requirement.
Opt for voluntary deductibles to reduce premium: Opting for a voluntary deductible means you are sharing a part of the claim payable from your pocket. This would eventually reduce the payable premiums to a certain margin based on the percentage of claims you are willing to pay as deductibles.
Check for network garages: Reach out to your insurer to identify the list of network garages that offer cashless options. If your existing insurer doesn’t have this option, try comparing online and look for companies that have tie-ups with the garages you prefer or which are in your vicinity. This hack can definitely save you a lot of hassle.
Make use of NCB: No Claim Bonus (NCB) is the reward one gets for being a good driver (i.e., someone who has good driving skills as no claim has been raised). This bonus gets accumulated every year until it reaches the limit of 50 per cent. You can make good use of this accumulated bonus to reduce the premium during cover renewal.
Consider installing anti-theft devices: Having anti-theft devices gives a positive sign for your vehicle to the insurer. Such an act is rewarded with a certain percentage of discount on renewal premium during renewals.
Renewing on time: Renewing your policy on time is the best and the most significant way to ensure continued coverage and lower premiums, as you are locking your premiums for the coming year and there will be no impact of fluctuations on your insurance premium rates.
The bottom line is that following the above guidelines can help you in timely and efficient car insurance renewal, and could be a win-win situation not only for the insurer but also for you (as an insured). Apart from this, one must read the policy documents thoroughly in advance as the features of plans and benefits may vary from plan to plan and insurer to insurer.
The author is the director, Probus Insurance.
DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.