Car insurance covers the owner of the car against any financial loss occurring due to or to the car as per the coverage. A general insurance company that is registered under the Insurance Regulatory and Development Authority of India i.e. IRDAI can issue a car insurance policy.
Car insurance policy can be of two types – Third party car insurance or comprehensive car insurance. As the name suggests, a third-party car insurance policy extends a financial cover against damages to the third party due to the insured car.
Let’s take a look at the steps you need to follow while renewing your policy.
Steps to renew car insurance online
Before you begin with the process of car insurance renewal online, you need to understand personal requirements and expectations from your car insurance policy. This will be very helpful to renew car insurance online.
Let’s take a look at the steps you need to follow at the time of car insurance renewal.
Step 1: Choose the right insurer
If you are not happy with the services provided by your current insurer or have found a more promising one, you can change the company when you renew car insurance. This can be done without worrying about losing the benefits of car insurance renewal.
An ideal insurance company should provide prompt assistance, top-notch services, and useful products. When you find your ideal car insurance company, visit their website and buy car insurance.
Step 2: Details
Once you navigate to car insurance online page, you will be asked a few questions. Through these questions, your insurer will be able to collect the details related to you and your car to display a car insurance premium quote.
You may have to answer questions like – Have you made a claim? Has your car insurance policy expired? What is the manufacturing year of your car? And so on. Simply fill these details to proceed to the next step. If you do not remember an answer to any of the questions, you can refer to your previous car insurance policy. It is important to answer these questions to renew car insurance online.
Step 3: Set the right IDV
While renewing your car insurance policy, you will be asked to set the IDV of your car. IDV is nothing but the Insured Declared Value of your car. It is the amount that your insurer will pay in case your car is stolen or gets damaged beyond repair.
To set the correct IDV of your car, calculate its approximate current market value. Each year, the market value of your car decreases and so does the IDV. Thus, the IDV of your car will be lesser at the time of each renewal.
Step 4: Check for NCB
NCB or No Claim Bonus is a discount awarded by an insurance company when the policyholder does not raise a claim. This discount is cumulative in nature and increases with every consecutive claim-free year.
If you have a comprehensive car insurance policy, and did not raise a claim during the policy period, you may be eligible for this discount. NCB is as high as 50% discount on car insurance premium if you raise a claim for 5 years. Those who have bought a long-term policy can avail even more than a 50% discount.
Step 5: Select Add-ons
Add-ons are supposed to be bought as per requirements. Thus, it will be helpful to review your requirements once again at the time of car insurance renewal since a lot can change in one year. If you had a passenger cover, but now drive alone, you can consider not buying this cover. Likewise, if you have installed extra accessories, it will be a good idea to buy an accessories cover along with the policy.