If you do not renew your policy within 90 days after its expiry, you will lose out on the accumulated NCB (if any) as well
Most people give a lot of thought while purchasing a vehicle but not so much while purchasing vehicle insurance. This can be attributed to their perception of insurance being complex, lack of information, paucity of time, negligence, and negative experiences associated with claims.
The auto insurance industry has taken notice of these challenges and revamped their functioning for a hassle-free insurance experience by going digital to a large extent. Digitisation is good for policyholders as it empowers them to make an informed choice, choose an apt policy and save money. Read ahead to know some tips to save money while renewing auto insurance.
Review your coverage
First-time car and bike owners generally purchase an insurance as suggested by their dealer. However, this coverage might not be ideal. You should review your auto insurance policy's coverage while buying and renewing it. There is no need of going for riders that are not beneficial for you. For example, a Passenger Cover rider is inconsequential if you travel alone. Such add-ons increase the cost of your insurance policy.
Don't forget your bonus
Vehicle owners are rewarded with a No Claim Bonus (NCB) by the insurance company for not raising a claim during the policy period. NCB is offered as a discount on the premium while renewing the policy. This NCB is incremental in nature and can go as high as 50%, provided you do not raise a claim for five consecutive years. Make sure your insurer has included this discount (if applicable) while you renew your policy.
Renew on time
Your insurance company might want to inspect your vehicle before renewing its insurance if you have failed to renew the policy before its expiry date. This might increase the policy's premium. If you do not renew your policy within 90 days after its expiry, you will lose out on the accumulated NCB (if any) as well.
Install anti-theft device
Installing an anti-theft device on your car can not only act as a precautionary measure against theft, but also reduce your premium. Insurance companies usually provide a discount on the premium if you have installed an anti-theft device, provided it is certified by Automotive Research Association of India. Insurance companies do not usually advertise that they provide discounts for installing anti-theft devices. But they might provide a discount if you request them.
Automobile association membership
Some insurance companies offer a discount on car insurance premium to members of Automobile Association of India. You can check out the benefits of becoming a member online and then decide whether you want to purchase the membership or not.
Voluntary deductible
There are two types of deductibles associated with vehicle insurance, compulsory and voluntary. Compulsory deductible is the amount you contribute in case of a claim. A voluntary deductible is an amount over and above the compulsory deductible. If you opt for a voluntary deductible, you convey to the insurance company that you are willing to contribute a certain, pre-decided amount in case of a claim. As a result, the insurance company reduces the premium.
On the other hand, choosing a voluntary deductible means that you shall receive a lower claim amount in case of a claim. As the entire point of insurance is to minimise losses, keep in mind the financial implication of the voluntary deductible on you before making the choice. Note that this process varies from insurer to insurer.
Online renewal
You can renew your insurance online, through your insurance company's website. The process is simple and instant. Advantages of renewing the insurance online include quick renewal process, zero paperwork, no middlemen, low prices and convenient insurance experience. In fact, some digital-first insurers also provide exclusive offers.
The writer is the head of product strategy, Acko General Insurance
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