The entire insurance sector has become very simplified and convenient thanks to digital transformation and the shift to the online ecosystem. This made car insurance The renewal procedure is much easier, simpler and faster than it was a decade ago. Immediate and immediate document issuance and renewals have superseded the previous procedures for exhausting form filling and submission of documents.

However, individuals should be aware and avoid some mistakes to renew an auto insurance policy in a hassle-free and affordable manner.

How to avoid mistakes while renewing car insurance online?

Here is a step-by-step guide to getting away from all the mistakes at the time of renewing your auto insurance online:

First Step: Renew the document on time

After being purchased, the car insurance policy remains valid for a specified period and must be renewed. Individuals should ensure that their vehicle insurance is renewed on time.

One can face traffic penalties and fines if one drives without a valid insurance policy. Some insurance providers may offer a grace period or additional time for policy renewal. However, individuals should note that their insurance will not cover their cars during this grace period.

Step 2: Go to the appropriate IDV (Insured Declared Value)

The declared declared value of a vehicle is a critical component of calculating the comprehensive premium and Third party insurance plan. It indicates the current market value of the vehicle, not the invoice value.

The IDV is accessed after considering the vehicle’s depreciation cost. Also, it is the sum insured that the insurance company provides to the policyholder if the vehicle is in complete loss – lost due to theft or beyond repair. For this, insurance providers often offer policyholders a range in which they can choose an IDV.

Choosing an IDV affects two things – the premium and the sum insured. A lower IDV indicates a lower premium and a lower amount insured, while a higher IDV indicates a higher premium and a higher amount insured.

Ideally, individuals should avoid these two extremes, and instead choose an IDV that offers greater coverage, and the premium fits their budget.

Third Step: Use the No Claim Bonus (NCB)

Individuals who do not file claims in their last insurance policy period are considered safe drivers and receive a No Claim Bonus (NCB) as a bonus. The National Commercial Bank is a renewal discount. Meticulously managing the National Commercial Bank is an excellent way to reduce the premiums payable.

One will get this discount on the premium upon renewal. The more years an individual has no claims, the greater the discount. Thus, when it comes time to renew the insurance, individuals should check their eligibility for NCB and ensure that it is applied to the renewal premium.

Step 4: Consider Voluntary Endurance

The deductible is the amount a policyholder can pay before the insurance company pays a compensation or claim.

Besides the mandatory deduction, individuals can also choose to pay an additional amount as a voluntary deduction. Choosing a higher voluntary deductible can lower the premium. However, individuals submitting a claim have to pay this amount independently.

Step 5: Choose the appropriate add-ons

Extra covers provide an extra layer of protection for the car, but people have to pay extra to get them. These help one boost the comfort quotient and get a better claim compensation. These add-ons include the addition of Zero Consumption, Additional Passenger Cover, No Claim Bonus Protection Cover, Roadside Assistance Add-on, etc.

Since extras can increase the premium, individuals should ensure that they choose only the most suitable. Individuals should analyze their insurance requirements and make a call accordingly.

For example, a roadside assistance add-on could be ideal for an individual who drives a car daily and is afraid of getting stranded or experiencing a breakdown. The zero depreciation value add-on nullifies the depreciation calculation when settling claims and proves useful for relatively newer vehicles. The passenger cover add-on may not be ideal for a solo driver.

The ideal time to consider removing or adding any additional cover is when your car insurance policy is ready for renewal. While purchasing several add-ons can increase your premium significantly, not choosing any add-on can result in insufficient coverage.

Note that one can easily switch to a different insurance company if he/she feels that there are better options and benefits. In this regard, one can opt for ACKO auto insurance. Interested individuals can visit Bajaj Finance Limited portal to view and compare auto insurance policies before choosing the right insurance.

Hence, individuals should be aware of the above-mentioned steps to avoid mistakes while renewing their car insurance online. Avoiding these mistakes at the time of renewal will go a long way to helping one make informed decisions.

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