Secure Your Car With The Super Car Insurance Plan!

Believe it or Not! Save upto* 75% on TATA AIG Car Insurance

Secure Your Car With The Super Car Insurance Plan!

Believe it or Not! Save upto* 75% on TATA AIG Car Insurance

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10 Must Knows of Car Insurance Renewals

  • Author :
  • TATA AIG Team
  • Published on :
  • 12/09/2023

Despite numerous initiatives by the Indian Government to encourage the purchase of insurance for four-wheelers, the adoption is dangerously low in our country. Several car owners have not even invested in mandatory third-party insurance, and several others have been found carrying fake insurance documents. Not only is driving without a valid car insurance policy illegal, but also highly dangerous. This is because your insurance for 4-wheeler can protect you from unfortunate road scenarios and shield your savings from suffering a blow.

Owing to poor car insurance adoption, many genuine third-party claims are not addressed because a large number of vehicles running on Indian roads does not have valid insurance coverage. This is particularly the case in smaller cities and towns. However, if you wish to secure yourself, your vehicle, and your finances, you must invest in a comprehensive car insurance policy. It is also important to know your policy tenure and renew the cover promptly before it lapses. We have enlisted the most important things to bear in mind when it comes to car insurance renewal.

Car Insurance Buying Guide: Factors to Consider at the Time of Car Insurance Policy Renewal

There are certain important things that every insurance seeker must be aware of at the time of car insurance renewal. It is important to be particularly careful with car insurance policy renewal because the first policy is commonly purchased by the car dealer without much thought. Only when you renew your insurance for a 4-wheelers, do you analyse your insurance requirements. And so, here are some car insurance renewal tips and factors for every insurance seeker to consider:

Type of Insurance Policy

There are essentially two types of insurance for four-wheelers: third-party cover and comprehensive cover. Third-party cover is the mandatory insurance that every Indian vehicle owner must possess. It offers coverage against liabilities to the third party in the event of an accident. However, it offers no compensation for its own vehicle, and all the damages have to be incurred by the owner from their pocket. On the other hand, a comprehensive car insurance policy secures the policyholder against both third-party liabilities and damages to own vehicle. Investing in comprehensive insurance for four-wheelers is always advised for complete protection on the road.

Add-On Covers

Add-ons are riders that help fortify a basic insurance policy. These benefits are available over and above the basic cover and can be availed of by paying an additional premium. The insurance for 4-wheelers by Tata AIG comes with 12 unique add-ons to help enhance your basic insurance coverage. Some common riders are:

Roadside Assistance: With this cover, your insurance provider sends you assistance if your car breaks down in a remote location when you are travelling, so you are not stranded in an unknown location.

Engine Security: With this cover, the most expensive part of your car i.e., the engine, is secured against damages.

Return to Invoice: In the unfortunate event of total loss or theft of your vehicle, the deprecation difference is covered with this add-on to compensate for your vehicle.

You can use the free online car insurance calculator to determine how much premium will be payable to help you find affordable and comprehensive insurance coverage.

Insured Declared Value (IDV)

The IDV is the current market value of your car. It is the amount that is payable by the insurance provider to the policyholder in case of theft or total loss of the vehicle. One of the best car insurance renewal tips is to purchase car insurance that is closest to the IDV of your vehicle so that you are appropriately compensated.

No Claim Bonus (NCB)

NCB is the reward insurance companies give their customers for not raising a claim in the entire year. To illustrate with an example, if an insurance seeker raises no claim for a year, they will get a 5-10% discount on their premiums in the subsequent year. If they raise no claims for five consecutive years, they may get as much as a 50% discount on their claims.

Cashless Claims

Every insurance provider has a listed garage network. These garages are affiliated with your insurance company, so you can get your car fixed without paying a penny from your pocket. Every car insurance buying guide will advise policyholders to undertake repairs at these affiliated garages so that the claims are settled directly with the garage. If you fix up your vehicle in a different garage, you will have to file a reimbursement claim and submit all the relevant receipts to your insurance provider.

Deductibles: Voluntary and Compulsory

Compulsory deductibles refer to the mandatory amount that needs to be paid by the insurance holder at the time of raising a claim. This amount is payable every time a claim is raised. Voluntary deductibles are the claims that are chosen by the insurance holder to be paid from their pocket. The higher the voluntary deductibles, the lower would be the premium payable. Deductibles ensure that there are no fake claims raised against an insurance policy.

Renewal of the Quote

Several factors influence the renewed quote for car insurance. These elements include:

  • IDV of the vehicle

  • Add-ons to the basic policy

  • Voluntary deductibles

  • Accumulated NCB

  • Additional features and benefits included in the basic policy

  • Knowing the factors influencing the car insurance quote can help insurance seekers make an informed purchase.

Transferability

Every insurance policy can be transferred along with the benefits to a different insurance provider. This is usually done if a policyholder is unhappy with the service of their previous insurance provider or has found a better policy. However, before transferring your policy, it is important to confirm that benefits, such as the NCB and the right IDV, etc., are also transferred to the new insurance provider at the time of renewal.

Claim Settlement Process

It is imperative to ensure that the claim settlement process of your insurance provider is seamless. Check whether your insurance company offers a 24*7 service for claim settlement. You can also check the customer reviews to make a note of any complaints for settlement of insurance claims. Finally, also check the claim settlement ratio of your insurance provider. The claim settlement ratio is the number of claims settled compared to the number of claims raised during a financial year.

Comparing Insurance Policies

You must never buy insurance without adequately comparing policies. When you buy car insurance online, you can easily compare policies from the comfort of your home. If you don’t compare policies, you might end up investing in the wrong cover. Moreover, when purchasing insurance online, you can get a discount on your premiums.

Wrapping Up

Car insurance is more than just a document. It has the potential to save you from a lot of distress and financial constraints in a time of crisis. With reliable car insurance, one can effectively protect themselves, their beloved vehicle, as well as their finances.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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