8 Tips for Car Insurance Policy Renewal

It doesn’t take rocket science to understand the importance of car insurance. If you are purchasing a new car, the chances are that the dealership will provide you a policy in the form of bundle offer. Even if you are purchasing the policy on your own, it is very obvious to compare different options. A lot of times, we tend to forget the date of renewal of auto insurance policy, and that’s where the trouble arises.

Why Car Insurance Policy Renewal is Significant?

The following benefits of car insurance policy renewal reflect its significance:

  • Protection Against Damage:

    Whether it is protection against natural catastrophe or manmade disasters, your car receive protection against multiple types of perils. In case you don’t renew your policy, you have to pay for the damage from your own pocket in case of an accident.

  • Protection Against Legal Procedures:

    The renewal of policy ensures that you don’t face any legal troubles that are caused due to lack of a third party insurance.

  • No-Claim Bonus:

    Almost every insurer offers a claim bonus during the renewal if coverage remains unused during the tenure of the policy.

  • Easy Online Renewal:

    As the insurers allow the customers to renew or buy car insurance online, you don’t have to face any hassles.

Why not to Settle for First Motor Insurance Renewal Quote?

Now that we have understood that car insurance policy renewal is inevitable for car owners, it’s time to choose the right policy. You don’t need to settle on the first quote offered by an insurer. That’s because you have the power to compare the policies offered by different service providers. You will not only get better discounts through features like no claim bonus, discounts for buying policy online, but you can also apply some exciting tricks to get good deals. In the subsequent section, we have discussed strategies to get the best possible quote while renewing your policy.

How to Save Money on Car Insurance Renewal?

Who doesn’t love to save money when it comes to insurance policies? Well, you can save a reasonable amount of money by following these tips.

  • Claiming Higher Deductibles:

    The amount paid at the time of the claim is known as a voluntary deductible. If an individual pays a higher voluntary deductible, then it gets converted into premium discounts at later stages.

  • Membership of Automobile Association:

    Many car owners might not be aware of the fact that they can avail discounts on premium if they are member of a reputable automobile association. The discount can be up to five percent. Another trick to save premium is installing safety features like anti-threat devices in your car. The insurer agrees to offer four to five percent discount on premium if you are using these features.

  • No Claim Bonus:

    As discussed above, an individual is eligible for no claim bonus if his/her had not made any claims during the previous tenure. The bonus varies from policy to policy, and can you attain up to 50 percent discount over the years.

  • Renewing Policy Before It Expires:

    More often than not, the individuals forget renewing the policy on time due to which they have to pay a higher premium. By paying in advance the premium in advance, you can keep this price hike in check.

  • Set the IDV Correctly:

    When an individual purchases a car, the insured declared value (IDV) is decided on the basis of the listed selling price of the model and brand. IDV of a car starts to decrease as soon as an individual starts to use it. During the renewal of the policy, the individual has the freedom to decide the IDV. The maximum cap and limitation differs for one service provider to another. The variation of IDV can be up to 15 percent. The individual must renew policy with an insurer that is offering most favorable IDV at the right cost of premium.

  • Compare Policies:

    In spite of being the very basic requirement, a lot of individuals fail to compare the policies before choosing the best one. Now with the insurance companies putting all the information on their website, the comparison has become quite easy. The policy comparison sites have further made it a simpler task to get cheap car insurance online.

  • Don’t Skip Fine Print:

    There are multiple conditions that might not be written in the features or benefits section of the insurer’s website. For example, the capping related to the cover or conditions related to depreciation. You need to read the brochure comprehensively to ensure that terms and conditions are not skipped.

  • Check for Riders and Add-ons:

    Each policy comes with add-ons and riders that can benefit you on the basis of the situation of the car accident. For example, zero depreciation value add-on ensures that car’s depreciation is not accounted while providing the coverage. Features like these can save a lot of your money while getting the car fixed.

Conclusion

At the end of the day, it is a little research and application of right strategies that can save you a lot of money. You can rely on www.comparepolicy.com for comparing car insurance policies available online.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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