Renewing your motor insurance may look like a routine task. Many vehicle owners simply renew their policy at the last moment without checking details. This habit often leads to higher premiums, reduced coverage, or claim rejection later.
Motor insurance renewal is the right time to review your policy, update details, and improve protection. Small mistakes during renewal can cost you money and peace of mind. Whether it is car insurance or two wheeler insurance, knowing what to avoid is very important.
In this article, we explain the most common motor insurance renewal mistakes and how you can avoid them. This will help you make better decisions and stay fully protected on Indian roads.
1. Renewing Without Reviewing Coverage
One of the biggest mistakes is renewing the policy without checking the coverage.
Many people continue with the same plan even when their needs have changed. Your car value reduces every year. Your usage pattern may also change.
Always review:
- Type of policy
- Sum insured or IDV
- Add-on covers
- Deductibles
A quick review helps you avoid overpaying or being underinsured.
2. Letting the Policy Expire
Missing the renewal date is a very common mistake.
If your motor insurance policy lapses:
- You lose continuous coverage benefits
- No Claim Bonus may be lost
- Vehicle inspection may be required
- Claims will not be honoured
Driving without valid insurance is also illegal in India. Set reminders or choose auto-renewal to avoid this issue.
3. Losing No Claim Bonus (NCB)
Many policyholders do not understand how No Claim Bonus works.
NCB is a reward for not making claims. It can give up to 50 percent discount on premium over time.
Mistakes that lead to NCB loss:
- Delayed renewal beyond the grace period
- Wrong declaration while renewing
- Claiming small repairs unnecessarily
Always check your NCB percentage before renewing and protect it wisely.
4. Not Comparing Insurers at Renewal Time
Renewal time is the best time to compare motor insurance plans.
Many people stay with the same insurer without checking alternatives. This may result in:
- Higher premiums
- Limited add-ons
- Poor claim service
Comparing plans helps you get better coverage at a better price. You can also switch insurers without losing NCB.
5. Ignoring Add-On Covers
Skipping add-ons to save a small premium is a common mistake.
Basic motor insurance may not cover many real-life expenses.
Important add-ons to consider:
- Zero depreciation cover
- Engine protection cover
- Roadside assistance
- Consumables cover
Choosing the right add-ons improves claim payout and reduces out-of-pocket costs.
6. Declaring the Wrong IDV
Insured Declared Value (IDV) is the maximum amount paid in case of total loss or theft.
Some people choose a very low IDV to reduce premium. Others choose a high IDV without understanding the impact.
Wrong IDV can lead to:
- Lower claim amount
- Higher premium without benefit
Always select IDV based on your vehicle’s market value.
7. Not Updating Personal or Vehicle Details
Changes in details should always be updated at renewal.
Common updates missed:
- Change in address
- Change in contact number
- Vehicle modification details
Incorrect information can cause delays or rejection during claims.
8. Choosing the Cheapest Policy Only
Price should not be the only factor.
Cheapest policies may have:
- Limited coverage
- High deductibles
- Fewer network garages
Focus on value, not just price. Balance premium with coverage and service quality.
9. Skipping Vehicle Inspection When Required
If your policy has expired or you are switching insurers, vehicle inspection may be required.
Skipping or delaying inspection can:
- Delay policy issuance
- Impact claim eligibility
Complete the inspection process on time to ensure smooth coverage.
10. Not Reading Policy Terms and Exclusions
Many claim issues happen due to lack of awareness.
Policy documents clearly mention:
- Inclusions
- Exclusions
- Claim conditions
Spend a few minutes reading these details during renewal. It helps avoid surprises later.
How to Renew Motor Insurance the Right Way
Follow these simple steps:
- Renew before expiry
- Review coverage and add-ons
- Check NCB details
- Compare plans online
- Update personal and vehicle information
- Choose correct IDV
These steps ensure complete protection and cost savings.
Final Thoughts
Motor insurance renewal is not just a formality. It is a chance to correct mistakes and improve your coverage. Avoiding common motor insurance renewal mistakes helps you save money, protect your vehicle, and enjoy stress-free claims.
Always renew on time, review your policy carefully, and choose coverage that suits your needs. A smart renewal decision today can save you from big financial trouble tomorrow.