Car Insurance Renewal
Car insurance is basically a contract between two parties; insurance company and the customer in which the customer is the first party to the contract and the insurance company is the second party to the contract. The insurance company settles the claims of the customer in case of an accident or loss in return for a definite amount from the customer in the form of Premium.
Third party is any other person other than the first and second party involved in an accident with the customer’s car. Under third party insurance bodily damage, death and property damage of third parties is covered by the insurance company. Car insurance is generally taken for a period of one year and is renewed on or before the expiry date. Long term car insurance policy can be renewed after 2 or 3 years.
Online Car insurance renewal is the better option in the market as it saves both time and money of the customer. Renew your car insurance online from our portal our portal where there are many options to select from the list. We at PolicyBachat have tied up with all the major general insurance companies offering car insurance, the process of online insurance renewal is made simple with our portal. We offer car insurance quotes from the top general insurance companies to enable our customers to renew their car insurance online. Our portal acts as a comparison platform where a customer can compare the car insurance quotes from different car insurance providers and select the best insurance policy for renewal.
We also offer “Pay As you drive” or “Usage based” car insurance quotes where the customer is charged only for the kilometres driven by the insurance company. This model helps the customer save a good chunk of money as there would be more than one vehicle with the customer and the car would be used rarely. Usage based car insurance can be taken at the time of your car insurance renewal and save few bucks on the insurance premium. The usage based insurance is gaining traction these days and is proving to be beneficial to both the insurance companies and the customers. Due to the lockdowns at various parts of India due to the Corona virus pandemic, there was not much usage of cars as there are restrictions placed on the movement of people.
There are many options to do car insurance renewal but online car insurance renewal is considered as the best option by many people due to the convenience it offers for the customers. Online car insurance renewal can be done from your place of convenience and there would be no physical paperwork involved in the car insurance renewal process. Online car policy renewal can be done from our portal and the policy copy can be obtained immediately after the payment. Car insurance renewal online provides the customer with many options which would otherwise not be available offline. For cheap and best car insurance renewal quotes please visit Car Insurance where you can compare the car insurance quotes from different insurance companies and decide the best online renewal insurance policy as per your convenience. We also have a dedicated team of agents to help our customer with their car insurance renewal process in selecting the best car insurance as per their requirements.
What are the things to consider while renewing car insurance?
There are certain things which should be considered before renewing car insurance policy which are discussed below:-
- Insured Declared Value:
Insured Declared value (IDV) is the value of the car which is considered for the purpose of insurance. In case of total loss or theft claims the insured declared value of the car plays an important role in deciding the claim amount. From insurance company’s point of view IDV is the maximum liability in case of any accident or loss. Insured declared value for first year is considered to be 95% of the invoice value of the car and for each renewal 10% reduction is applied while calculating the IDV.
General insurance companies offer almost similar IDV for same make and model. Higher the IDV, higher would be the premium to be paid by the customer. It is important to strike a balance between the IDV and the premium to be paid. At the time of renewal it is important to consider the IDV offered by the insurance company and the premium charged for it. PolicyBachat offers car insurance renewal quotes from different insurance companies and the IDV can be adjusted depending on the affordability.
Insured declared value is the sum insured agreed by the customer before taking the policy and later at any stage the IDV cannot be increased. In case of an accident, the maximum claim amount that can be paid would not exceed the IDV mentioned in the policy. In simple words if the claim amount is more than the IDV mentioned in the policy, the difference amount has to be borne by the customer. If the claim amount is less than the IDV, then the claim amount would be settled to the customer.
- Cashless Garages:
There are two types of claim settlement options such as Cashless and Reimbursement. In cashless claim settlement option the claim amount up to the IDV would be paid by the insurance company to the garage directly. In case of reimbursement, customer has to settle the repair bill and later claim from the insurance company. Cashless garages are the list of network garages which are tied-up with the insurance company to provide cashless service to their customers. Every insurance company has tied-up with garages to offer cashless service to their customers in case of claim.
It is important to check for the cashless garages in your location or in your area of operation before purchasing the policy from insurance companies. Higher the number of garages, higher would be the feasibility to get the repairs done in case of claim. The number of cashless garages would be high in metro/urban areas compared to semi-urban and rural areas. There would be multi brand garages in few locations which would cater to almost all the major brands of cars.
The major purpose of taking insurance is to get financial assistance at the time of claim and if the assistance is upfront then it would benefit the customer very much. Hence the cashless claim settlement option should be considered by the customer before taking the policy online. There are many links available online where you can check the cashless garages available in your area from different insurance companies, one such link is that of ICICI LOMBARD ICICI LOMBARD .
The list of cashless garages can be checked based on pin code or the city and the list would be displayed. It is possible to check the list of cashless garages manufacturer wise for your car and decide on the renewal of your car insurance online.
Riders or add-ons are the extra coverage offered by the insurance companies on payment of additional premium. Riders such as Bumper to bumper, consumables, Engine protection cover, Road side assistance cover are provided by the insurance company at the time of car insurance renewal on payment of extra premium. The extra premium to be paid is under the own damage section of your car insurance policy.
It is important to understand the type of rider to be purchased at the time of car insurance renewal. Every rider would not be beneficial at every location. For instance engine protection rider would be useful for customers residing in flood prone areas such as Mumbai, Himachal where there are heavy chances of roads getting flooded in monsoon season and thereby damaging the car engine.
Cities like Delhi NCR and other north states are notorious for car theft where the Return to invoice cover should be purchased by the customer. This cover provides the invoice price of the car in case of total loss or theft of car. Riders such as Bumper to bumper and consumables which provide the depreciation cost and consumables cost should be included by all the customers to prevent paying a part of the claim at the time accident or loss. Road side assistance rider can be purchased by customers who wish to get assistance at the time of breakdown of car on highways.
Riders are available on payment of extra premium; hence including every rider blindly would increase the premium to be paid by the customer. It is important to exercise caution at the time of deciding the riders for your car insurance renewal.
- Compare and Buy:
The first and foremost thing to consider before renewing your car insurance is to compare the premium from different insurance companies. We at PolicyBachat assist you with comparison of premium from the top general insurance companies. The best car insurance renewal quotes can be compared online at Car Insurance by entering the basic details such as Make, model, date of registration, RTO location etc. The premium would be displayed by almost all the general insurance companies with the Insured declared value offered by each company.
PolicyBachat enables customers to have apple to apple comparison when it comes to car insurance renewal. Comparison helps the customer identify the best car insurance for renewal and the process of comparison is done after considering all the factors. We at PolicyBachat have a dedicated team of agents to help customers with their car insurance renewal. Once you decide on the renewal insurance then you can proceed to payment section and get the policy instantly. For every car insurance renewal it is important to compare and buy to get the best car insurance policy at the time of renewal.
Another important thing to consider while renewing the car insurance is the premium charged by the insurance company. Too high premium and too low premiums should be examined cautiously by the customer before making any payment. High premium results in customer paying extra premium for the same coverage available in the market and fewer premiums may be the result of some kind of hidden clause in the insurance contract.
The premium should be compared only after finalizing the above mentioned factors such as IDV, riders, cashless garages. These factors should be considered and the list should be made with the insurance companies offering these. Among them the best one with the less premium should be selected by the customer. Premium once paid cannot be returned in full to the customer after the cool off period. Cool off period is the period where if the customer is not satisfied with the services or the coverage provided by the insurance company, he/she can cancel the policy and get 100% refund.
If the policy is cancelled after the cool off period then pro rata premium would be refunded by the insurance company i.e. premium for the days covered would be deducted and the remaining premium would be refunded to the customer.
- Claim Settlement time:
Claim settlement time is the time taken by the insurance company from the receipt of the claim intimation to the repair and handover of the car to the customer. Normally the claim settlement time would be calculated from the time of arrival of vehicle in the garage as the customer would be towing the car to the garage. Insurance companies usually allot a surveyor within 24 hours of reporting the claim; surveyor reaches the garage or the accident spot to ascertain the loss.
The surveyor prepares the report and shares with the insurance company where the insurance company will come into contact with the customer for claim settlement amount. If both the parties agree to the claim settlement amount, the insurance company will process the claim after the repairs are done and the car would be handed over to the customer. This process takes anywhere between 2-7 days depending on the type of loss and the spare parts availability.
Few insurance companies offer claim amount upfront with video based survey of the damaged car if the losses are minimal. In this case the repairs can be done by the customer as per the convenience and the claim settlement time is less.
What are the factors affecting renewal premium?
There are few factors which can affect your car insurance renewal premium and each of them are discussed below:-
- No claim bonus:
No claim bonus is the discount offered by the insurance companies for not making any claim in the previous year. This is an incentive from the insurance company to the customers not making any claims. The no claim bonus ranges from 0% to 50% and increases each claim free year. If there is claim in any year, then the no claim bonus will be reduced to zero and the cycle repeats. No claim bonus is calculated on the own damage section of the car insurance as the third party premium is decided by the IRDA. Higher the no claim bonus, lower would be the premium paid by the customer. Hence, no claim bonus is the major factor which affects your car insurance renewal premium.
NCB cannot be transferred in case of sale of car, as the no claim bonus is given to the owner/driver of the car as a reward for good driving behaviour. No claim bonus can be transferred from one insurance company to the other at the time of renewal. Car insurance renewal premium can be decreased by accumulating higher no claim bonus.
Having a claim can increase the premium of your car at the time of renewal. This happens due to two things; one is the no claim bonus would become zero thereby increasing the premium and the other is reduction in the discount. Few insurance companies offer fewer discounts for cars having claim in the previous year while few other insurance companies offer same discount for cars with and without discount.
Also the frequency of claims would be taken into consideration at the time of car insurance renewal by the insurance companies. If there is more than 1 claim reported by the customer in a policy period, then the existing insurance company would not be willing to renew the car insurance policy.
- Transfer of ownership:
One of the important factors which affect the renewal premium is the transfer of ownership of the vehicle. If the vehicle is sold and there is a transfer of ownership then the renewal premium would be high or at par when compared to previous year. This is due to the fact that the NCB would not be transferred if the ownership is transferred. So the renewal quote will be calculated without the NCB, and the discounts would also differ if the no claim bonus is zero at the time of renewal.
How to save money on Car insurance renewal?
One of the most researched question on Google and most asked question would be how to reduce the car insurance renewal premium. This is due to the thinking of people that they have spent hefty amount on the car insurance premium and have not availed any claim, so there is no point in spending the same amount of premium at the time of renewal. This may be true from the customer’s point of view, but there are few things which need to be considered by the customer before deciding on the renewal premium to be paid.
- Accumulate NCB:
No claim bonus is given to the insured customer for each claim free year and the bonus increases from 0% to 50% in 5 claim free years. Accumulating higher no claim bonus can reduce the premium to be paid by the customer as higher discount in own damage premium would be given by the insurance company for customers having higher NCB. There would be huge difference in premium for customers having nil NCB and customers having 50% NCB.
- Reduce IDV: Insured declared value or IDV can be reduced by the customer to reduce the overall premium to be paid. Lower IDV results in fewer premiums to be paid by the customer. But it is important to maintain a balance between the IDV and the premium to be paid. Too less IDV can reduce the amount of claim at the time of total loss or theft. Car insurance renewal premium can be reduced by reducing the IDV to the lowest available value.
- Voluntary excess: Excess or deductible is the amount of claim to be borne by the insured customer at the time of claim settlement. This is the way of making the customer responsible at the time of claim settlement. Higher the deductible amount, higher would be the responsibility of the customer at the time of claim. Car insurance renewal premium can be reduced by opting for higher voluntary excess. A small portion of liability at the time of claim settlement is transferred to the insured customer by opting for higher voluntary deductible or excess. Every car insurance policy carries compulsory excess of up to Rs.2000 per claim and the voluntary excess opted would be over and above the compulsory excess. For instance if the voluntary excess is opted as Rs.5000 and the compulsory excess is Rs.2000 then in case of claim where the claim amount is Rs.10000, a total of Rs.7000 would be deducted and Rs.3000 would be paid to the insured customer. The amount of Rs.7000 has to be borne by the customer in return for the reduction in premium.
- Riders as per necessity: Riders or add-ons should be purchased by the customer as per the necessity to reduce the premium to be paid at the time of car insurance renewal. Customer should spend some time and do research before deciding on what kind of riders are suitable for the geography in which the customer operated the car. Riders play an important role in deciding the renewal premium and therefore should be selected as per necessity.
For best car insurance renewal quotes please visit Car Insurance and get the online renewal quotes from top car insurance companies.