How to Save Money while Renewing Your Motor Insurance Policy?
It is important to renew your policy on time so that you do not lose its continuation benefits. At the same time, it is equally important that you get the best deal while renewing the policy. Here are some of the simple ways to save on renewal of motor insurance in India:
Read the policy document.
Renew before expiry.
No claim bonus.
Know the vehicle.
- Compare policies.
Before undertaking motor insurance online renewal, check all the features on the existing policy first. This is because some of the points may not be applicable anymore, and it is best to have a policy that is up to date.
For example, if some complementary cover is being provided by the vehicle manufacturer, then one can skip this feature during motor insurance renewal. This way, the policyholder can skip paying for redundant or less relevant features, and the premium amount will come down.
Read Policy Document
Before reviewing the insurance policy, always read the policy document, particularly the fine print. Always cross-check with the information given on the website as well for any updates prior to motor insurance renewal.
The website might mention some additions or discounts that the policyholder can avail. This way, they can, in some cases, renegotiate certain terms and conditions before signing the new insurance cover and save money in the process.
Renew Before Expiry
Another important thumb rule that must be followed for motor insurance renewal is that the policyholders must renew the policy before it expires. Renew a month or two ahead of the expiry date to be on the safe side.
For instance, if the rates for motor insurance in India are hiked, then purchasing the policy earlier can prove to be beneficial while keeping the premium down during motor insurance renewal.
No Claim Bonus
Policyholders who have not filed any claims are eligible to a no claim bonus from the insurer. This is something that most policyholders do not utilize to their advantage at the time of motor insurance online renewal.
Even if the policyholder is purchasing a new insurance policy, they will be in a position to transfer credits to their account. This is because the insurance policy is in the name of the policyholder. As a result, the premium to be paid will be heavily discounted while the policyholder will receive all the benefits that were extended to them as before post-motor insurance renewal.
Know the Vehicle
Another essential aspect that policyholders need to keep in mind is to know the vehicle well. The premium to be paid will be based on the vehicle inspection, and for this reason, the policyholder must be well aware of what to expect, and not get blindsided by revised coverage plan and premium rates at the time of renewal of motor insurance.
Also, it is best that policyholders have an idea about the motor vehicle’s depreciated value as this can be a starting point for negotiations. This way, the policyholder will be equipped with the information required to get a fair deal or request for amendments if the policy is not up to par.
It is always good to know the options available to make an informed decision for motor insurance renewal. Often, policyholders become complacent and don’t do their homework for comparing policies.
When they do realize that the policy is not what they really wanted, it is a little too late to make any changes because the policy is already in effect. Invest some time and understand, compare, and then arrive at an informed decision rather than pay more and regret this decision later on.