Renewing your car insurance may seem like a simple yearly task. Many car owners renew their policy at the last moment without reviewing the details. This approach often leads to higher premiums, poor coverage, or claim issues later.
Car insurance renewal is not just about continuing your policy. It is the right time to reassess your coverage, update details, and optimise costs. Small mistakes during renewal can result in financial loss and unnecessary stress.
In this article, we explain the most common car insurance renewal mistakes to avoid. Understanding these mistakes will help you renew your policy smartly and stay well protected on Indian roads.
1. Renewing Without Reviewing the Policy
One of the biggest mistakes is renewing your car insurance without checking the policy details.
Over time, your car’s value reduces. Your driving habits and usage may also change. Renewing the same policy blindly may result in overpaying or insufficient coverage.
Always review:
- Policy type
- Coverage benefits
- Insured Declared Value (IDV)
- Add-on covers
A short review can help you save money and improve protection.
2. Missing the Renewal Due Date
Allowing your car insurance policy to expire is a serious mistake.
If your policy lapses:
- You lose continuous coverage
- No Claim Bonus may be lost
- Vehicle inspection becomes mandatory
- Claims will not be accepted
Driving without valid car insurance is illegal in India and can attract fines. Set reminders or opt for auto-renewal to avoid missing the deadline.
3. Losing No Claim Bonus (NCB)
No Claim Bonus is a valuable reward for safe driving.
Many policyholders lose NCB due to:
- Late renewal beyond the grace period
- Incorrect declaration during renewal
- Claiming small repair costs unnecessarily
NCB can give up to 50 percent discount on your premium. Always check your NCB percentage before renewing and protect it wisely.
4. Not Comparing Car Insurance Plans
Renewal time is the best time to compare car insurance policies.
Sticking with the same insurer without comparison can result in:
- Higher premiums
- Fewer add-on options
- Average claim service
Comparing policies helps you find better coverage at competitive prices. You can also switch insurers without losing NCB.
5. Choosing the Wrong IDV
Insured Declared Value (IDV) is the maximum amount paid in case of total loss or theft.
Common IDV mistakes include:
- Selecting a very low IDV to reduce premium
- Choosing a high IDV without understanding its impact
A low IDV leads to lower claim payout. A high IDV increases premium unnecessarily. Always choose IDV close to your car’s current market value.
6. Ignoring Important Add-On Covers
Skipping add-ons to save a small amount on premium is another common mistake.
Basic car insurance may not cover many real-life expenses.
Important add-ons to consider:
- Zero depreciation cover
- Engine protection cover
- Roadside assistance
- Consumables cover
- Return to invoice cover
The right add-ons can significantly improve claim settlement and reduce out-of-pocket costs.
7. Not Updating Personal or Vehicle Details
Incorrect or outdated details can cause claim delays or rejection.
Details you should update at renewal:
- Address and contact number
- Vehicle modifications
- Change in car usage
Always ensure that your policy details are accurate and up to date.
8. Buying Only Based on Lowest Price
Choosing the cheapest policy is not always the best decision.
Low-priced policies may have:
- Limited coverage
- High deductibles
- Fewer network garages
Focus on value instead of price. Choose a policy that balances premium, coverage, and claim service.
9. Skipping Vehicle Inspection
If your policy has expired or you are switching insurers, vehicle inspection may be required.
Avoiding or delaying inspection can:
- Delay policy issuance
- Affect future claims
Complete the inspection on time to ensure uninterrupted coverage.
10. Not Reading Policy Terms and Exclusions
Many claim disputes happen because policyholders do not read the terms.
Policy documents clearly mention:
- Inclusions and exclusions
- Claim conditions
- Deductibles and limits
Spend a few minutes reviewing these details during renewal to avoid surprises later.
How to Renew Car Insurance the Right Way
Follow these simple steps:
- Renew before policy expiry
- Review coverage and add-ons
- Check No Claim Bonus details
- Compare policies online
- Select the correct IDV
- Update all personal and vehicle details
These steps help ensure better protection and cost savings.
Final Thoughts
Car insurance renewal is more than a routine process. It is an opportunity to correct past mistakes and improve your coverage. Avoiding common car insurance renewal mistakes helps you save money, enjoy smoother claims, and stay legally compliant.
Always renew on time, review your policy carefully, and choose coverage that suits your needs. A smart renewal decision today ensures stress-free driving throughout the year.