Every family has different priorities and facilities. They also have other incomes and budgets. What one can afford may seem unaffordable for the other. There are many hurdles when it comes to buying something expensive, like jewellery, cars, houses, etc. While all these are easy for the wealthy and well-to-do families, it is not the case with all households. They should monitor every expense, fulfil the requirements, and save for the future as well.
When it comes to buying a car, ensure to apply for car insurance to save costs on repairs and damage due to natural and human-made calamities. It will ensure that all the repairs and maintenance get covered under the premium amount. All insurance providers give applicants a policy with an expiry date. They must renew it before the policy lapses to keep it active. Also, it will enable them to continue enjoying the benefits.
Following are the points to remember while renewing the insurance plan:
- Research online: Before finalising an insurance company, all the policyholders must research online for schemes and aggregators. If they are content with their current plan, they can continue with it. If not, they can change the project and even the insurance provider by applying for a new car insurance renewal. The online process is fast, secure, and convenient. It is a paperless procedure, and the entire method takes less than a few minutes to complete. The recipient gets the insurance policy document mailed by the insurance company to the registered email address. They can also compare different policies on a single page and select the best quotation. Check for the services and riders. Also, read reviews from existing policyholders and decide whether to take or change it.
- Select the policy type: While using the online car insurance renewal method such as LGI LivMobile app, ensure to select the right policy. There are several options, like comprehensive and third-party liability policies. The third-party system is mandatory, according to the Motor Vehicles Act, 1988, and covers third-party liabilities only. On the other hand, a comprehensive insurance policy covers third party as well as other damages. It is advisable to opt for a comprehensive plan. Also, select from a wide range of add-on covers which include zero depreciation, return to invoice, roadside assistance, engine protection, no claim bonus, and loss of personal belongings.
- No Claim Bonus (NCB): An applicant is eligible for No Claim Bonus if they do not make any claim throughout the financial year. It is an incremental benefit that can go up to 50 per cent over five consecutive years. Ensure that the policy has NCB facility to carry forward even if applicants switch the insurance company.
- Insured Declared Value (IDV): It is the current market value of the car’s price. It is the maximum amount that the car owner will receive from the insurance company in case of theft or destruction. It will also determine the premium of the policy. So, choose the insurance policy with the correct IDV.
- Discount: All policyholders are eligible for a discount on their insurance premium only if they have installed an anti-theft device inside their car. The device should hold a certification from the Automotive Research Association of India.
- Voluntary deductible: By opting for a voluntary deductible at the time of car policy renewal, there will be a decline in the premium. The deductible is a minimum amount required to pay in case of a claim. There is voluntary and mandatory deductible. Select the amount for a voluntary deduction.