Most individuals purchase their first motor insurance policy from their dealerships. Whether due to lack of awareness or convenience of buying, the renewal date gives you an option to make changes, if any, from the initial purchase.
Also, while renewing your motor insurance policy, you have the option to change the existing features of your policy. Say you want to opt for a no claim bonus protection cover or a zero depreciation plan, your policy can be amended.
Let us explore the points that you must keep in mind while renewing your motor insurance policy.
No claim bonus for your insurance policy:
The no-claim bonus, popularly abbreviated as NCB, is a concession received at the time of renewal of your insurance policy. This markdown in your premium at renewal is a reward for not making any claims during the policy tenure. The NCB percentage starts from 20% and goes up to 50% for every consecutive claim-free policy tenure. It is a concession that is available only at the time of renewal and not during the original purchase. The NCB facility is linked to the policyholder and not to your vehicle. Thus, even if you switch your insurance company at renewal, you can take advantage of your past NCB accrued benefits.
Coverage for own damage:
Typically, the buyers of motor insurance policies have two options to choose from – either a liability-only cover or one with extensive coverage. While the amended Motor Vehicles Act, 1988 stipulates the minimum requirement of a third-party insurance cover, one can also enhance this cover to include protection for own damage.
Own damage or comprehensive motor policy comes handy at the time of such car / two wheeler insurance renewal. As the name suggests, an own damage cover insures the cases of accidental damage along with natural and human-made perils like landslides, floods, theft, vandalism, riots and more. Moreover, there is also a personal accident cover for the driver included in most comprehensive policies that protect from injuries caused by accidents.
Personal accident coverage:
A personal accident policy covers for minor and major accidents too. Along with accidental coverage, any disabilities, whether permanent or temporary, are also covered under the personal accident cover. In some situations where there is no personal accident coverage under your comprehensive policy, you can opt for a personal accident cover for the driver as well as passengers.
Premium of your policy:
The insurance premium of your policy depends on a variety of factors like the model and make of your car, the sum insured, the type of coverage selected, the geographical location and more. The more the risk associated, the higher will be the premium. Also loading additional coverage options in the form of add-ons contribute to increasing your premium amounts.
These are some of the tips that you can keep in mind when renewing your policy. Be it private or commercial vehicle insurance, considering the points mentioned above will help in availing suitable coverage at affordable prices.
Hemant Kumar is a project manager at Tridindia with more than nine years of commendable experience in writing about LMS, translation, and IT. His unmatched talent and passion for digital marketing gave him the opportunity to work as a multi-tasking project manager at TridIndia’s sister company, Link Building Corp. Today, he contributes to the world by imparting knowledge on SEO, link building and internet marketing etc., that helps business owners grow their online business.