According to the Motor Vehicle Act under the Government of India, it is mandatory for every vehicle owner to insure his or her vehicle. Just like every general insurance, motor insurance is also an annual cover generally with certain additions and variations. So, once this insured period is over, you are required to renew it.
In this article we will discuss the five factors that you are supposed to consider when renewing your motor insurance. Let us go through each one by one because these are the most ignored ones:
1. Evaluate Insured Declared Value of your Car
The Insured Declared Value that is shortened as IDV is a vital factor that should dominate your purchasing and renewing of your motor policy. This value denotes the amount or value the owner shall receive in the event of total vehicle damage, loss or theft. This value directly affects the premium you are going to pay so there is no way you should not know what it means.
While this is said, people can be lured into lower premiums which comes at the expense of lower IDV that directly compromises the future coverage of the vehicle.
2. Check for No-Claim Bonus
Also shortened as NCB, No-Claim Bonus is a special discount provided by insurance companies in case the insurance is not claimed in the preceding full annual policy term or in simpler words, the previous year. This discount could be up to 50% but there is one thing that you need to know. It is that the NCB benefit is available only on the Own Damage or OD Premium.
3. Read the Term & Conditions
Although it is not something that should be written in an online article, it is also the most ignored but most essential part of any deal. When you are buying something that holds such a high value, you must read the terms and conditions carefully. It will help you have a clear picture of the insurance right from the beginning.
4. Get a List of Network Garages
Every insurance company has an Insurance Company Network Garages where you can get cashless service for repairs and more benefits to make the settlement of the claim simple. The garage can settle the bill directly with the insurance company which should be cashless for you.
5. Add-Ons for Extra Benefit
Always check the add-ons list of the insurance company which can include services like NCB protection, depreciation reimbursement, basic roadside assistance, inconvenience allowance, engine guard, emergency medical expense, cover for consumables, enhanced personal accident cover for passengers, and more. You can take the ones which suit your need to make your insurance cover more personalised.
In this article, we learnt about the 5 top most facts which are ignored in general but should be considered with utmost importance before renewing or buying a motor insurance policy. It is a significant decision which should be handled with complete care and thorough examination.
I hope we could provide you with the right information related to the tips for renewing your motor insurance policy. Share this article with people who are looking to get theirs renewed.