10 Car Insurance Renewal Tips

A car insurance policy is not a one-time investment. Car insurance companies in India offer yearly insurance policies. Hence, you need to renew your expired car insurance each year. If you do not renew your car insurance timely, your insurance policy expires, and your car is at risk. This means that if anything happens to your car or to a third party due to your car, you will not receive any compensation for the damages. All damages and costs of repairs will be borne by you.

You can opt to continue with the same insurance company as before or choose a new insurance provider at the time of renewal. Car insurance renewal online is simple, quick and requires minimum documentation, especially if you are renewing your motor car insurance from the same insurer. Irrespective of the insurance company, there are some factors you should consider when renewing your car insurance policy.

• Compare different car insurance policies

There are multiple car insurance companies in India. Hence, before you renew your motor car insurance, check plans of other companies apart from your present insurer. Compare the features, coverage, premiums, etc., and make an informed choice.

Tata AIG offers an online car insurance premium calculator to help you understand the premiums across motor car insurance plans. However, it is not wise to make your decision based on the lowest premiums.

You should choose an insurance company with strong market credibility and reliable motor car insurance plans, several add-ons, seamless customer support, a wide garage network, online facilities, a mobile app and more.

Tata AIG had a claim settlement ratio of 98% for FY 2020-21. Additionally, it offers a wide cashless garage network of more than 8700 associated garages.

• Assess the type of plan

Third-party motor car insurance is mandatory for all vehicles in India. However, third-party insurance only protects you against third-party liability and does not offer any other financial support. Therefore, you should ideally opt for comprehensive insurance for your car at the time of renewal.

Comprehensive insurance protects you against any third-party damages and injury as well as covers financial damages caused to the insured car due to an accident, theft, fire, natural disaster, man-made disasters, etc.

Tata AIG allows you to change the type of coverage from third-party insurance to a comprehensive car insurance cover during renewal. Opting for comprehensive online car insurance is a wise choice to ensure all-round protection.

• Carefully select the car insurance add-ons

Even though it is not mandatory to buy an add-on for your motor car insurance policy, it is wise to improve your car insurance coverage by selecting effective add-on policies. By paying a small premium, you can save several thousand rupees, which would else be spent to cover car or life damages.

For instance, a personal accident add-on with comprehensive car insurance financially protects you against injury or any other severe physical damage caused by an accident. Some popular car insurance add-ons available with Tata AIG online car insurance plans include roadside assistance, daily allowance, zero depreciation cover, no claim bonus (NCB), key replacement, engine protect cover, etc.

At the time of renewal, see which add-ons suit your needs and drop any unnecessary old add-ons.

• Assess the network of garages
  Car insurance renewal online is easy, and you might want to go for an insurer that offers the lowest premium. However, before you proceed with the car insurance renewal online, check the network of garages of the concerned insurance company. Check if the insurance company you are considering has tie-ups with your preferred garage.

With 8700+ network garages, Tata AIG ensures you can get the cashless facility across India. In the cashless facility, Tata AIG settles the bill directly with the garage, and you do not have to pay any money for repairs.

• Insurance Declared Value (IDV)

IDV is the maximum amount payable by the insurance company to you in case of total loss or theft of the vehicle. The insurer decides the IDV according to the car market value after depreciation. IDV varies from one insurance company to another.

A higher IDV means you pay higher premiums and vice versa. However, it does not mean that you choose a lower IDV during car insurance renewal online. Choosing the right IDV will ensure you do not pay high premiums and do not suffer a financial loss in case of theft or complete loss of the car.

• Take advantage of the NCB

Checking the applicable NCB or No Claim Bonus is a critical car insurance renewal tip to remember. If you did not make any claim on your motor car insurance in the past year, you are eligible for a No Claim Bonus, i.e., a discount on the renewal premium.
NCB accumulates each year until it reaches a specific limit (usually 50%) after five consecutive claim-free years. You can use the accumulated NCB to reduce your premiums at the time of car insurance renewal online.

• Opt for deductibles, if possible

In car insurance, a deductible is a sum payable by you during a claim. Some motor car insurance plans have mandatory deductibles to avoid false or fake insurance claims. Alternatively, some insurers allow you to pitch in and pay a part of the claim amount, known as voluntary deductible.

If you take the voluntary deductible option, the insurance company readily reduces your premiums by a specific margin – 20-35%.

• Install anti-theft devices

Another car insurance renewal tip that can come in handy is installing anti-theft devices. Anti-theft devices certified by the Automotive Research Association of India (ARAI) are regarded as a safety step from your side.

• Become a member of a recognised automobile association

Car insurance companies in India offer a discount on car insurance renewal online if you are a member of a recognised automobile association in India, such as Automobile Association of Upper India, Automobile Association of Southern/Eastern India, Western India Automobile Association, etc.

• Car insurance renewal on time

A car insurance renewal tip you must know is that renewing motor car insurance on time plays a pivotal role. Timely renewal helps lower your premiums because you are essentially locking the insurance premiums for the coming year, and no future price fluctuations can impact your insurance.

Apart from this, timely renewal of insurance for your car also assures your vehicle is always financially secure and there is no lapse of coverage. The benefits remain intact.

Opting for a timely and efficient car insurance renewal online is a win-win situation for both parties – you and the insurance company. However, it is beneficial to be sure of the features of your policy and carefully assess all factors before processing the renewal.

You can renew your TATA AIG motor car insurance online with minimum documentation and enjoy comprehensive coverage, affordable premiums, a cashless facility across 8700+ garages, over 13 add-ons and seamless claim assistance. Choose wisely!