Amidst the bustling streets of India, where road conditions remain uncertain and traffic takes on a chaotic nature, obtaining car insurance transforms from a mere legal obligation into a judicious choice.
Car insurance is not a one-time commitment. It’s an ongoing responsibility as your policy has a validity period. Usually, it’s just one year. When the policy expires, you must renew it to continue to benefit from the coverage. Renewing your car insurance on time ensures you remain covered against potential risks without interruption.
How to negotiate better rates at renewal
Car insurance renewal doesn’t necessarily mean accepting the rates offered without question. When it’s time to renew your car insurance, you have the opportunity to not only ensure you have the right coverage but also to potentially lower your premiums. Here are some valuable tips to help you negotiate better rates during your car insurance renewal:
Assess the Period of TP & OD Cover: It’s essential to review your expiring policies carefully, as the Third-Party (TP) and Own Damage (OD) covers may not always coincide. Understanding these dates is crucial for sound financial planning and comprehensive protection, as it can help you avoid gaps in coverage or overpaying due to divergent renewal dates, thus ensuring your insurance remains effective and cost-efficient.
Evaluate Add-Ons: Assess your unique requirements and determine if any supplementary coverages are essential. These extra protections can deliver comprehensive coverage and minimize substantial expenses you might face when making a claim.
Engine Protect for Flood-Prone Areas: Residing in flood or inundation-prone areas makes engine protection coverage essential for vehicle owners. This add-on guarantees that in the event of water-related damage, your vehicle’s engine is fully covered. Without it, repairing or replacing a damaged engine due to flooding can result in costly out-of-pocket expenses. Engine protection coverage provides peace of mind and financial security in such vulnerable environments, ensuring that you won’t be burdened with significant repair or replacement costs in the aftermath of a flood or inundation.
Usage-Based Policies: Some insurers offer usage-based policies that take into account your driving behavior and mileage driven. If you are a safe and infrequent driver, this option can lead to lower premiums.
Road-Side Assistance: This is a critical feature that can be a true lifesaver during emergencies. It’s imperative to confirm that your insurance policy includes this invaluable service. Road-side assistance ensures that you’re never left stranded on the road, regardless of the predicament you find yourself in. Whether it’s a flat tire, a dead battery, running out of fuel, or any other unexpected issue, this service dispatches professional help to your location promptly. It not only provides convenience but also enhances safety by swiftly addressing problems, especially in unfamiliar or hazardous situations.
Garage Network: Check if your insurer has a wide network of authorized garages. This can make repairs and claim settlements more convenient.
Insurer’s Claim Settlement History: Research your insurer’s claim settlement history. Look at factors like the aging of cases, Turnaround Time (TAT), and pending claims status. A reputable insurer with a swift claims process is more reliable in times of need.
Also Read: 6 effective ways to track your expenses
Self-Inspection Feature: Choosing insurance policies that incorporate self-inspection during the claims process can greatly enhance the overall experience. This feature streamlines and simplifies the claims process, making it considerably hassle-free. With self-inspection, policyholders can use their smartphones or other devices to document and share images and videos of the damage directly with the insurance company. This eliminates the need for an insurance adjuster to physically visit the location, which can often be time-consuming and inconvenient.
Deductible Options: Understand the trade-off between lower and higher deductibles. A higher deductible can lead to lower premiums, but it means you’ll pay more out-of-pocket in case of a claim.
Preserve No-Claim Bonus (NCB): Avoid making small value claims if possible, to preserve your No-Claim Bonus (NCB). Accumulating NCB can significantly reduce your premiums over time.
Renewing your car insurance is a chance to make sure you have the best coverage and save money. By using these tips and checking your policy carefully, you can get a good deal and feel secure knowing you’re protected without spending too much. Renewing your car insurance on time is like a safety net for unexpected events on the road. These tips help you get a fair price. It’s important to understand your policy, think about what you need, and compare options. Spending a little time doing this is worth it to keep your car and wallet safe.
This article has been written by Pooja Yadav, Chief Product Officer, Zuno General Insurance.