Third party motor insurance is compulsory in India. The practice of renewing car insurance policy is pretty commonplace among thousands of car-owners in India. Although, many people in India are under the misconception that car insurance renewal is a money making tactic of insurance companies, there are many avenues available to save money if one chooses to go online. Online renewals further provide car-owners with a number of benefits. This post aims at assisting those who are looking to renew their existing car insurance policy and to ensure that they get the best deal at a much-reduced price.
Ways to reduce car insurance renewal cost
There are many windows available when it comes to save on the expense of renewing a motor insurance plan. Let us start our discussion with 5 major ways.
This is one of the key ways of saving money while renewing car insurance policy in India. People those who never compare various quotes and are content with the renewal quote that their exiting car insurers offer may lose out on a great chance to reduce the expense. One of the major reasons why these people turn their faces away from comparison is the task of visiting a myriad of insurance portals and comparing costs manually.
However, to ease out the entire process many a quality insurance comparison portals has come into existence. The best among these portals like GIBL also help people compare, buy and renew policies from a single interface as well. Car-owners should make the most of this unique facility and check out advantageous car renewal plans so that they can compare , find the best and make a renewal and save money in the process.
Zero in on vital features
While comparing a myriad of car insurance renewal schemes, car owners invariably come across a plethora of features on offer by insurers. Since the requirement varies from one car-owner to another, it is prudent for motor insurance renewal seekers to narrow down on features they they need and opt out those costly plans with extensive features that are not relevant for them. This ploy can save them a good amount of money.
Car-owners with valid insurance policies are eligible for concession at the time of renewing their policies if they don’t make any claim during the policy year. The concession is known as no claim bonus or NCB and it keeps increasing as the policyholder’s claim-free year also increases.
At the time of car policy renewal, current policyholders are entitled to opt for a voluntary deduction. As per the norm, policyholders are supposed to pay this voluntary deduction amount at the time of claim settlement. If one chooses to pay higher amount one will have to pay less on premium, hence one can save on car policy renewal.
Most car insurers tend to raise the price of renewal on or some days before the stipulated renewal date. A lot of car-owners faced a sudden hike on the day of renewal , simply because insurers are well-aware of the fact that car-owners have no option but to grab them by paying more. Hence, it is prudent to start looking for a car renewal policy at least two months in advance. A week or two can be spent on searching, finding, comparing and selecting the best motor insurance renewal plan so that the renewal policy can be acquired at least 45 days before the lapse of current policy. Even if insurers raised the renewal rates at the time of renewing car policy it won’t be a matter as the policy has already been renewed at a reasonable price.
An early renewal will not take any value away from an existing car policy
All insurance companies offer vehicle insurance renewals at least 45 days prior to the expiry of the current policy. Even if a car-owner has his or her motor insurance policy renewed well before the expiry of the existing policy, the new policy will come into effect only when the former one ceases to exist. This means the money that car-owners paid for premium earlier will not be lost.
Comparison of car insurance renewal policy
Let us assume, a person by the name of Mr. Nikhil Kumar, a Mumbaikar, purchased a stylish Hyundai Santro car a year back. His policy is about to expire on 30th September, 2015. In a bid to find and compare available renewal policies for his car, Mr. Kumar visited the portal of GIBL and furnished his and his car’s details. His car details are, a 5 seater Hyundai Santro , AT, petrol with a cubic capacity of 1086. Mr. Kumar made a claim in the first policy year and he opted out for voluntary deduction.