Renewing vehicle insurance? Top 5 things to keep in mind to minimise loss and maximise gains

For starters, those who are looking to get vehicle insurance must do a few things like, claim no claim bonus (NCB); compare plans; know the market value of the vehicle to determine Insured Declared Value and more. So, if you want to renew your existing vehicle insurance policy, Zee Business gives you insights into how to go about the process - here are a few vehicle insurance dos and don'ts.

1) Never allow your renewal date to lapse. Timely renewals ensure that you get your no claim bonus (NCB) which brings down the premium that you would otherwise pay - though you get a 90-day window to renew it from the date of expiry. Insurance companies give a policyholder an incentive in the form of a lower premium up to 50% of the amount if the owner has not applied for a claim during the term of the insurance.

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2) As a thumb rule never renew your insurance policies without analyzing what other service providers are offering you. Go to the websites of any preferred insurance aggregator/s to check and compare what different service providers are offering. Shortlist the plans you find best and then look for an ideal plan that offers you adequate insurance at a competitive price.

3) Small premiums may not always be the best option as the Insured Declared Value or IDV for your vehicle may come down. IDV is the maximum sum assured of your motor insurance policy. Calculation of IDV is a complex task and you may not be able to know the right price being offered to you by the service providers. On renewals, the IDVs usually come down significantly. You are the best judge of the condition of your vehicle. While there is no clear cut way, it is good if you make some efforts to determine what the market price of your vehicle is. This could give you some idea of what your IDV should be.

4) Opting for a higher limit of voluntary deductible in a policy is a good way to reduce the premium. If you have not done that previously, you should do it in the renewal policy. If a policyholder files a claim, he has to pay the limit of the voluntary deductible and the insurer will pay for the remaining amount. The voluntary deductible offers you a discount on your premium.
 
5) While you take a policy, it is advisable to install an anti-theft device in the vehicle. This can reduce the premiums of your policy. You can also become a member of the Automobiles Association of India or Western India Automobile Association to get discounts on insurance premiums.

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