Purchasing a third-party car insurance plan is mandatory in India as per the Motor Vehicles Act, 1988, and so is renewing it whenever the policy term ends. An insurance policy should be renewed periodically to avail its benefits.
However, insurance providers tend to increase the premium rates when you renew your policy as the vehicle becomes older and prone to more damage. To this effect, here are some tips that might help you negotiate your premium when renewing your car insurance policy. Let us look into them:
Compare other car insurance plans
With online insurance aggregators, you have the perfect platform to renew your car insurance policy. You just need to visit your preferred aggregator’s website and compare the various available plans. Once you have compared car insurance policies, shortlist the ones you would like to purchase. Ideally, the best plan is the one that offers you adequate coverage at a competitive price.
Calculate your car’s IDV accurately
The maximum sum that is assured under your motor insurance policy is called the insured declared value (IDV). It is computed by adjusting the market value of your vehicle against depreciation. The sum of the money paid to you in the case of a total loss or theft is based on the IDV. Your insurance premium is directly proportional to the IDV, i.e. the higher the IDV, the higher would be your premium.
Utilise your no-claim bonus
If you are a careful driver who has not filed any claims during the policy term, then you are eligible for a no-claim bonus. No-claim bonus allows you to lower your premium by a maximum of 50% with each claim-free renewal. NCB is one of the most efficient ways of lowering your insurance premium at the time of car insurance renewal.
Higher voluntary deductible limit
All motor insurance plans provide the liberty of selecting a voluntary deductible limit. This limit signifies the claim amount that a policyholder agrees to bear from his pocket. In the case of a claim, you need to pay the limit of the voluntary deductible while the remaining amount is provided by the insurance provider. Opting for a higher voluntary deductible makes you eligible for concessions on your premium.
Timely renewal of car insurance
If your motor insurance is not renewed on time, then you miss out on the no-claim bonus and its perks. Hence, ensuring the timely renewal of your policy is a must.
Only buying motor insurance is not enough; you must also renew your policy on time. If you follow the above tips, your renewal becomes economical. Moreover, you also end up saving your hard-earned money and can put it to better use.
These are some of the most efficient ways to renegotiate your premium rates during policy renewal. You can use an online car insurance calculator, which is a valuable tool that helps you find the best insurance policy based on your specifications. It makes it easier for you to compare the different insurance plans with just one click. In simple words, a car insurance calculator will help you evaluate your insurance needs and opt for an appropriate plan.