Auto insurance, like most other general insurance policies, is an annual policy and must be renewed upon expiration. In accordance with the Motor Vehicles Act, every vehicle operating on the roads is required to carry a third party liability insurance policy. The insured may opt for a comprehensive policy or other add-ons to ensure adequate and comprehensive coverage. Here are a few important facts to consider before renewing auto insurance.
Find out the insured declared value of your car
The Insured Declared Value (IDV) is an important factor to consider when purchasing or renewing a car policy. This is the maximum value that can be obtained in the event of theft or complete damage to the car. IDV affects the amount of premium paid and is therefore important to understand. More often pay attention to the lower insurance premiums offered by various companies when renewing the policy. However, it is important to understand that a lower premium is often achieved at the expense of a lower IDV, resulting in insufficient insurance coverage and negatively impacting future claims.
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Check for free bonus
The No Claims Bonus (NCB) is a discount provided if an insured does not file a claim within the previous full year of the policy. General insurance companies in India offer up to 50% discount as NCB benefit for five consecutive years without claims. The NCB benefit is only available on the OD premium and not on the total premium payable, which includes the third party premium.
Check out the terms
Please check the terms and conditions and other details at the time of renewal to avoid misinterpretation as this may affect the coverage you receive. You can also renew your policy by expanding coverage if your current policy does not meet your needs, or you can transfer your policy to another insurer for better coverage, additions and service without losing your NCB.
Get a list of online garages
Each insurance company has links with garages located throughout the country. These garages are known as insurance network garages. Auto insurance companies offer cashless car insurance policies for repairs at these network garages to make the claims settlement process easier. The invoice is paid by bank transfer by partner garages directly with the insurance company. As a result, in addition to its share of the liability, the insured is not obliged to pay the amount of the repair.
Add-ons for added value
To mitigate losses that are often not covered by standard auto insurance coverage, you can take advantage of additional services such as depreciation reimbursement, NCB protection, basic roadside assistance, engine protection, inconvenience allowance, consumables coverage, emergency medical expenses, advanced insurance from accidents. for passengers and so on. These additional coverages, which can be added to a vehicle’s policy for a small fee, can be extremely beneficial.
Purchasing auto insurance is an important decision that requires careful consideration of the options available, as well as any additional coverage required. Timely renewal requires proper evaluation to qualify for the appropriate benefits.
The author is Head of Underwriting, SBI General Insurance.