Driving a car without insurance is illegal, according to the Motor Vehicle Act. Auto insurance provides consumers with a financial cushion in the event of an accident, theft or damage to the vehicle caused by natural calamity or any other reason.
Over the past couple of years people have limited their trips due to Covid lockdowns and later travel restrictions. As a result, many consumers have not renewed their auto insurance policies.
“With life returning to normal in recent months and people leaving, it is essential for vehicle owners (both two and four wheelers) to keep an eye on their car insurance policies. It is crucial to ensure that their car insurance policies are up to date,” says Indraneel Chatterjee – Co-founder – RenewBuy.
In many cases, people have been found not to renew their car insurance policies during the two years of Covid restrictions.
For starters, Chatterjee points out, “consumers should check to see if the car insurance policy is renewed; if this is not the case, it is necessary to check its grace period and renew the policy. »
He further adds, “In case the consumer is planning to purchase a new car insurance policy, it is beneficial to opt for comprehensive insurance coverage.” Not only does it cover third party liability and provide coverage for its own damages, but it also provides financial assistance for losses resulting from a collision. It also covers losses due to theft, natural disasters, repairs and replacement, and even loss of cars. Although this coverage calls for a higher premium, note that the benefits are numerous.
Industry experts say that people should also be aware of using the no claim bonus. Chances are that many policyholders have not made a claim in the last year, mainly due to the low utility of the vehicle. In this case, as the policyholder, you will be entitled to a certain discount when renewing the policy.
For example, you can get a 20% discount after a claim-free year, 25% after the second consecutive year, 35% after the third, 45% after the fourth and 50% after the fifth consecutive year.
Chatterjee explains: “The insured should be aware that there is an NCB reservation provision, where an insured can have their NCB transferred to their new vehicle and can benefit from lower premiums. It is also recommended to purchase insurance with adequate IDV (Insured Declared Value) so that the consumer can have adequate coverage in case of damage to the car.
Likewise, note that you should choose add-on coverages wisely, depending on your location and use of a particular add-on. For instance, according to experts, opt for covers like Geo Extension, only if you are taking your vehicle outside Indian geography.
Chatterjee explains, “Sometimes it can be difficult to understand all the terms and conditions of the policy and therefore to engage digital insurance advisors, especially InsurTech distribution companies. This can help consumers purchase insurance in an unbiased way and then guide them through the right steps to avail themselves of police claims, as part of their insurance service.