In India, it is mandatory by law for every vehicle owner to have at least a valid third-party motor insurance policy. Driving without this basic coverage can attract the penalty of a hefty fine or even imprisonment.
Now, while it is essential that you renew your car insurance policy on time to stay legally compliant, it is equally important that you review your coverage while doing so. Remember that a car insurance policy does not only protect you from fines but also from losses due to mishaps. Yet, many motorists simply renew their car insurance without giving much thought to the policy’s coverage or their current needs and this can prove to be a mistake. If you too are about to renew your car insurance policy anytime soon, read on to know about some mistakes you should steer clear of.
- Sticking with the same insurance provider
The insurance industry is a highly competitive one. As such, insurance providers constantly compete with each other by offering attractive pricing on their premiums. So, even if you wish to stick with the type of car insurance policy you have, it makes sense to check the pricing for the same coverage with another insurance provider. You might be pleasantly surprised at the new price you get for the same plan with another insurer.
- Forgetting about add-ons
Add-ons help you customize your coverage so that you get an insurance policy that is tailor-made to your needs. At the time of policy renewal, do not forget to consider add-ons such as engine protection cover, roadside assistance, consumables cover, passenger cover, and key replacement cover, among others. These add-ons come at an extra price but will truly save the day – and your money – in an emergency.
- Choosing the cheapest policy
When buying any type of insurance, you must always choose your policy based on coverage and not cost. Simply opting in for the cheapest plan might cost you heavy in the long run as you will not get enough coverage when you go to make a claim. Therefore, it is worth paying a little more now for a lot of gains in the future.
- Not considering online purchase
If you are comfortable with online transactions, do not hesitate to check out car insurance renewal online. Renewing your coverage online will save you a lot of time and effort. Plus, insurance providers are known to offer better pricing to customers who transact online.
- Allowing the policy to lapse
Always renew your car insurance policy before it expires. If your policy expires, you are technically driving around without coverage. This can put you at risk of facing heavy fines for the lack of a valid motor insurance. You are also in danger of incurring major financial losses if you meet with an accident. Plus, allowing your policy to lapse before renewal will also cause you to miss out on your no-claims bonus (NCB) that you receive for every claim-free year. So, make sure to set a reminder and renew your coverage before it lapses each year.
Avoid these mistakes while renewing car insurance to get the best out of your new policy. We do hope this article has proved helpful for you.
Buckle up and drive safely!