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Monday 25 September 2017
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Here’s how renewing Insurances help you in the long term

Here’s how renewing Insurances help you in the long term

Car is very useful for all purposes. Be it travelling to a remote location or commuting to office regularly or spending leisure time with family and friends. With options like easy financing and low down payments, purchasing a car has become easy and simple.

Along with maintaining the car, the owner also has to ensure that his car is insured. Car Insurance being mandatory in India implies that all cars driving on Indian roads should be insured. Car owner will have to buy a policy from insurance service provider by paying premium.  Premium is paid annually and policy is renewed year by year till the policy holder pays premium. In case if the policy holder does not pay the premium on time, the policy expires.

Once the policy expires, you won’t be able to renew the old policy, instead will have to buy a new policy. This could result in inflated premiums, verification of vehicle or rejection to provide coverage.

Here is how it helps in the long term to renew car insurance today:

Peace of Mind

Having a Car has become more of a necessity and with the increasing number of cars on roads, accident incidents on rise, it is extremely important to have a peace of mind while driving car. Along with ensuring that your car is well serviced, it is equally important to insurance your car and renew the car insurance annually without fail.

No Claim Bonus (NCB)

No Claim Bonus is a discount given by the insurance company to the policy holder at the time of renewal. As the name goes, this discount can be availed only if the policy holder files no claims during the insured period. This discount is only available when you renew car insurance. Discounts starts from about 20% in the second year or at renewal period and goes up to a maximum of 50% of premium in the 6th year of policy.

You can transfer NCB from your old car to a new car as it is an incentive to the policy holder and not the car. NCB can also be transferred from one insurance service provider to another by providing appropriate proof of NCB.

Convenient

With the evolving technology, you can purchase and renew policy online without any hassle. Also, you can compare the insurance quotes provided by various insurance service providers and select the best possible deal.

Car insurance policy can be purchased by contacting the customer service center of the insurance company or by contacting a general insurance agent.

Change in Policy Type

At the time of buying a policy, you have taken the basic policy i.e. the third party liability policy. But with time, you might feel the need to opt for a comprehensive coverage which keeps you insured from the risks arising due to damage to the car.

Add on Covers

Maintaining an insurance cover ensures that you are up to date with the available add on covers which provide additional coverage to the car with a small increase in the premium.

Commonly preferred addons are:

Zero Depreciation

Insurance company does not reimburse the full price to replace the old parts of car in case of claims. It gives you the depreciated value of parts replaced. Zero depreciation protects the depreciation element of the car parts and enables the policy holder to claim the full cost of the replaced part of the car.

Personal Accident Cover

In case accident, this add on covers both the policy holder and his paid driver. It reimburses the complete claim amount in case of events like death.

Other type of Add on covers are Quick assistance on roads, Engine and electronic circuit cover, Key replacement, loss of personal belongings. Different insurance service provider offers various add ons.

Renewing policy and keeping your car insured has its own sets of benefits in the longer run. Not only it keeps you financially secured in case of any loss or damage caused to the car but also, ensures that you have adequate coverage by declaring appropriate IDV (IDV is the current market value of the vehicle) and availing benefits of driving safely.