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Take a look at these factors before renewing your vehicle insurance policy; details here

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Representational image. News18

Every vehicle operating on public roads must have third-party motor insurance, as stipulated by the Motor Vehicles Act. To provide adequate and complete coverage, the insured may choose comprehensive insurance or various add-ons. It is a major decision that demands a careful analysis of the options available as well as the required add-on coverage. Each factor must be properly assessed in order to renew it on time and be entitled to the rewards.

Similar to the majority of general insurance policies, vehicle insurance provides annual coverage, which must be renewed whenever it expires. Here, we will discuss some facts that a customer should look into before going for the renewal of their vehicle insurance policies:

Insured Declared Value (IDV): Before buying or renewing a vehicle coverage, it’s necessary to take the insured declared value (IDV) into account. In the event of theft or complete car damage, it represents the maximum compensation. Understanding the IDV is crucial since it has an effect on the premium amount paid. Customers can frequently be lured by the lower premiums being provided by several insurers while renewing their policy. It’s crucial to realise that a lower premium usually means a lower IDV, which ends in insufficient coverage and has a negative effect on future claims.

Terms and conditions: Check the terms and other information at renewal time to prevent any misunderstandings that might affect the coverage you receive. If the existing insurance does not suit your requirements, you can also extend the coverage or switch to a different insurer for better coverage, add-ons, and support without affecting NCB.

No-claim Bonus (NCB): If the insured does not submit a claim during the previous complete annual policy term, they will receive a discount known as a no-claim bonus (NCB). For five years in a row with no claims, general insurance businesses in India provide up to 50 percent of the discount as an NCB bonus. The Own Damage (OD) premium is the sole premium that qualifies for the NCB benefit.

Add-ons: You can purchase add-ons like depreciation reimbursement, NCB protection, basic roadside assistance, engine guard, inconvenience allowance, cover for consumables, emergency medical expense, enhanced personal accident coverage for commuters, etc to help minimize losses that are frequently not protected by standard motor insurance coverage. For a minimal charge, these extra coverages can be applied to a vehicle policy and can be quite handy.

Network garages: Every auto insurance provider has partnerships with garages across the country. These shops are referred to as insurance company network garages. To simplify the claim settlement procedure, motor insurance companies provide cashless auto insurance plans for repairs at these partner garages. These garages and insurance companies settle the dues in a cashless transaction. As a result, the policyholder is not bound to pay the repair amount apart from his share of liabilities.

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