In India, under Motor Vehicles Act 1965, it is mandatory to insure the two wheeler and four wheeler vehicle. However, despite of a mandatory law, there are hundreds of car that do not even have necessary third party liability insurance of their vehicle. Even worse is that most of the cars running on road either have fake insurance papers or old insurance papers.
As per the Insurance Policies analysis, over 30 to 40 % of four wheeler and 70 % of the two wheeler vehicles do not possess a valid insurance policy. This percentage is more higher in rural areas. Since there are hundred of people who do not have even a third party coverage of their vehicle, so the insurance agents are also not very much motivated to encourage the car insurance plan renewal.
In India, only third party insurance is mandatory however people go for comprehensive car policy as it provides a complete protection of your vehicle at the time of any damage. But taking a insurance plan just a half step, it is important that you renew your car insurance time to time. So today in this article, I will be discussing with you the 10 must knows of the car insurance plan renewals.
10 must knows of Car Insurance Plan
1. Type of Plan
While finalizing your car insurance policy, it is very important that you decide whether you want a comprehensive plan or third party insurance. Third party insurance provides the coverage against the third party liability arises due to your vehicle. On the other hand comprehensive plan provides the protection both third party damage as well as own vehicle damage.
2. Insured Declared Value
One of the most important must knows of car insurance plan renewal is IDV. It is the actual market price of your vehicle computed by insurance company for that particular year. This amount is provided to the insured in case the vehicle get damaged or any kind of loss occur.
3. Compulsory and Voluntary Deductibles
Compulsory Deductible is the amount that an insured has to pay at the time of taking claim. On the other hand, voluntary deductibles refers to the amount which the insured give according to his or her own wish. For example – the compulsory voluntary deductible for the claim is Rs. 2000. However the insured pays off 4000. The deductibles reduces the amount of premium.
4. Add on Features
With the standard car insurance policy, there are add – on features that are very beneficial. Some of the add on benefits are –
- Zero – Depreciation cover – While calculating insured declared value, the depreciation value is subtracted from the market price. This reduces the claim value that you would be getting. But if you take this cover, then the depreciation is not subtracted from the market price. However, the premium amount is high.
- Accessories cover – Well, car insurance plan does not provide the insurance for the accessories. However if any unfortunate event happens, you have to bear the cost of accessories on your own. But after subscribing for this cover, the insurer will pay for the damage of accessories as well.
5. Cashless Facility at garage
Another must knows of car insurance plan is the cashless facility at the affiliated garage. For availing this benefit, all you need to have the information about the garages which are affiliated to your insurance company. Instead of going from here and there for reimbursement, it will settle easily.
6. No Claim Bonus
It is a benefit which is provided to those insured who do not file the claim for an entire year. In simple words, if you do not have file any claim, a certain amount of bonus is added to the Insured declared value.
7. Portability Feature
Do you know just like your mobile number, your car insurance policy is also portable? Yes, you can easily port your car insurance plan from one insurer to another. However, do keep in mind that all the benefits are successfully given to you like No Claim Bonus, Insured Declared Value, etc.
8. Renewal Quote
Another must knows of car insurance plan is renewal quote. Well, with the renewal the renewal quote can vary as it depends upon the following –
- IDV – IDV may increase or decrease depending upon the add on feature you are taking at the time of car insurance policy renewal. For example, if you opt for zero depreciation cover, the IDV increases at the time of filing for the claim.
- No Claim Bonus
- Voluntary and Compulsory deductibles.
9. Ease in filing Claim Procedure
It is very important that the procedure to claim car insurance is easy and quickly. It should not be complex or hectic procedure. People should look for Insurance companies that provides easy claim procedures.
10. Compare policy price online
While shopping for car insurance policy, it is very important that you do not blindly choose the insurance company and policy. Compare various insurance companies as well as their price quotes about the policies.