What Is Car Insurance Renewal Policy?

Car insurance renewal policy offers security against financial liabilities, third party liabilities, theft, etc., in case of unfortunate events. If your car is involved in an accident, then your car insurance provider will cover the financial liabilities arising from this accident keeping in terms with your policy inclusions.

Car insurance renewal policy is, in fact, your primary source of protection against financial burden in case of any mishappening. If you let your policy lapse, you won’t be able to save yourself from financial liabilities as well as your discounts and No Claim Bonus will lapse.

What Does Car Insurance Renewal Policy Include?

1. Damage and Loss in Case of Natural Calamities

Natural calamities such as flood, earthquake, lightning, storm, cyclone, hurricane, landslide, and other events out of your control are covered in car insurance renewal policy.

2. Damage and Loss in Case of Man-Made Calamities

Man-made calamities such as theft, terrorist attacks, riot, and other damage caused on rail, road, and water are covered under the renewal of your car insurance.

3. Third Party Liability Cover

Third party liability cover is mandatory in India according to Motor Vehicles Act, 1988. It covers the liabilities arising due to injury to, damage of, or death of the third-party. The surrounding property damage is also covered in most third party liability car insurance plans.

4. Personal Accident Cover

The personal accident cover is generally up to INR 2 Lakhs and covers your permanent disability or demise in case of damage caused while travelling, dismounting, and mounting the car. It saves your family from future liabilities if something were to happen to you.

Is Your Car Insurance Policy Right For You?

There is no single way of knowing if your car insurance renewal policy is right for you. A series of evaluations and analysis of different factors can help you decide whether your policy is the right fit for you or not. And don’t worry if you figure out that your current plan is not the correct one, it is easy to switch to a different car insurance policy provider nowadays.

1. Policy Comparison

Visit Coverfox.com and enter a few basic details such as car model, registration year, and registered RTO. The portal will display available car insurance policies along with their premium bifurcations. Check out the premium details along with inclusions, exclusions, and personal cover details. These things will set the guiding path for moving forward towards the right policy.

2. Add-On Cover

After you have checked the above details, review the add-on covers available with your shortlisted policies. For instance, some people may need roadside assistance cover and others may want zero depreciation cover. Many might not want any add-on covers at all. However, in both the cases, it is necessary to check if the provider offers an add-on relevant to you.

3. Insurance Provider Reviews

Reviews display the real-life scenario and service delivery of your provider. People who already have a car insurance from the provider you have shortlisted will be able to tell you about the services. So, check online reviews and see what customers feel about a particular car insurance provider.

4. Look After NCB

If you are buying a car insurance for the first time, then the No Claim Bonus will only be relevant to you after the end of the first term. If you are renewing your policy or shifting to a new policy provider from an old one, you need to look after the No Claim bonus transfer. You will get some additional discount for claim free years.

5. Check CSR

While customer reviews will provide half of the clarification, checking claim settlement ratio (CSR) will tell you the claim settlement status. CSR is the ratio of claims settled and claims filed in one financial year. If this ratio is good, it means when you’ll file a claim, the chances of it being settled is high.

Don’t Miss your Car Insurance Renewal Policy End Date

Finally, try not to forget your renewal date because if you do so, you may not be able to renew the policy, you’ll lose No Claim Bonus, you can face fines because motor insurance is compulsory as per the Motor vehicles, Act 1988, and you will not be covered against financial liabilities in that time period.

Generally, most insurance providers offer a grace period for renewal, which can range from 3 to 30 days. However, many of these providers also charge extra fees for renewing car insurance in the grace period. Hence, get onto Coverfox.com and don’t delay your car insurance renewal process to avoid redoing it.