Why Comparing the Best Car Insurance Policies is Essential Before Renewal?

Pune, 11 November 2024: When it comes to car insurance, making an informed decision is crucial. As policy renewal approaches, you may feel tempted to renew the existing plan without considering alternatives.

However, comparing car insurance plans is crucial when you plan for vehicle insurance renewal. It enables you to get the best coverage at the most competitive rates. In this article, we will answer the question, ‘Why Comparing the Best Car Insurance Policies is Essential Before Renewal?’.

Why Should You Compare Car Insurance Before Renewal?

Comparing your car insurance plan online is crucial to ensure you purchase the right plan for your vehicle. Here are a few reasons why you must compare car insurance plans before renewal:

Get the Best Value for Money

Car insurance can be expensive as different insurance companies have different premium rates. Although the Insurance Regulatory and Development Authority of India regulates the premium rates for third-party insurance, the comprehensive premium rates differ from one insurer to another. Hence, compare the existing premium rate and new quotations from different insurers to get the best value for money for your desired insurance plan.

Understand the Features and Benefits

Another reason you must compare your existing insurance plans with other plans is to understand the features and benefits offered by different insurers. As comprehensive plans have several features and benefits, they differ from insurer to insurer. Hence, by comparing the insurance plans before renewal, you can purchase the insurance plan from the insurer offering better features according to your requirements.

Identify Cost Savings with Lower Premiums

One of the main reasons to compare car insurance plans before renewal is to save money on premiums. As different insurance companies update their pricing models to attract new customers or retain existing ones, you can utilise the benefit to receive comprehensive coverage at lower rates. Hence, you can find a policy that offers the same or better financial coverage at an affordable rate by comparing various plans.

Benefit from No-Claim Bonus (NCB) Portability

When you drive safely and do not raise an insurance claim during your existing insurance period, you can get a no-claim bonus to reduce the renewal premium. However, the NCB is not limited to a single provider. When you compare policies from different insurers to choose the best car insurance policy, you can look for insurers that offer a more substantial reduction for your accumulated NCB. It will enable you to enjoy a larger discount and better policy terms.

Evaluate Insurer’s Claim Settlement Ratio

Claim settlement ratio is an important renewal metric that represents the percentage of claims settled by the insurer, showing how likely they are to honour claims efficiently and promptly. Your current provider may have an acceptable claim settlement ratio, but you may find other insurers with higher or more reliable ratios when you compare them. You can check the reviews or customer feedback to choose an insurer with the highest claim settlement ratio.

How to Renew Existing Car Insurance Policy?

Here is a step-by-step guide to renewing your existing car insurance policy:

Step 1: Research the Car Insurance Policy

Research the car insurance companies to pick one which provides excellent pre-sale and post-sale services. You can read the reviews of various customers online to understand the quality of service from the insurer and the kind of customer support it has. It will help you make the right decision.

Step 2: Choose the Type of Insurance Policy

Choose the insurance company, and select the type of policy that is either third-party or comprehensive. The third party is the legal requirement that provides coverage of liabilities against third parties due to accidents. The comprehensive policy will cover your liability against third parties besides the damages caused to your vehicle.

Step 3: Fill up the details

Once you have chosen your preferred policy, fill up the insurer’s online renewal form for your car. You must provide information such as car registration, previous details of your policy, and personal information. It is one of the most critical steps toward calculating an accurate premium and ensuring that the coverage is suitable for your needs.

Step 4: Select Add-ons for Better Coverage

Select the add-ons you want to include in your existing plan for comprehensive policies to receive better coverage. You can consider adding zero depreciation cover, return to invoice, engine protection, no-claim bonus protection, etc., to receive added financial coverage.

Step 5: Pay the Premium Amount

When you have finalised the policy and add-ons, you can pay. Once paid, the insurer will email the renewed policy in a secure PDF format. It is legally valid and can be printed. Keep copies at home and in your car for when you need to show them to authorities.

Final Words

Therefore, comparing car insurance policies before you renew is a crucial move for you to create maximum value and coverage from your policy. You can compare the plans to save on the premium and receive personalised coverage. Hence, in the fast-evolving world of car insurance, keep an eye on the latest offerings to receive extensive coverage and reduce expenses.