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.
Comparison
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.
No-claim bonus
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.
Higher deductible
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.
Advance 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.
[Source: http://blog.gibl.in/car-insurance-renewal-you-cannot-escape-but-you-can-certainly-save/]
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