A guide to hassle-free car insurance renewal in India


08 Jun 2023

Simplifying Car Insurance Renewal in India

Comprehensive car insurance coverage is essential to protect your car against all the risks and damages that could lead to a financial burden. Third-party car insurance is a mandatory legal requirement in India to ply your vehicle on Indian roads. You need to renew your car insurance policy before it expires for continuous coverage and protection. Car insurance renewal is an easy process. If you forget to renew your car insurance, you might face the financial consequences of not having coverage during unforeseen situations.

Guide to hassle-free car insurance renewal:

Car insurance renewal is a simple process, as most insurance companies allow you to renew the existing insurance policy online within a few clicks. However, renewal is as good as purchasing a new insurance cover for your car. Hence, it is essential to make an intelligent purchase decision. The following is an easy guide to hassle-free car insurance renewal:

  1. Avoid policy lapses.

Generally, car insurance renewal is an annual process unless you have purchased long-term car insurance, which can provide coverage for up to three years. Set a reminder for each renewal, as missing out on the renewal can lead to policy lapses. Renewal of lapsed policy is a process that consumes time and could cost you more. You would also lose out on the no-claim benefits.

  1. Know the type of plan.

Third-party car insurance is a mandatory requirement by law. You can also have a comprehensive car insurance policy covering you and your vehicle against risk and third-party liabilities. While renewing, it would be ideal to go for a comprehensive cover.

  1. Do not compromise on the insured declared value (IDV).

Evaluating the insured declared value of your car is extremely important during car insurance renewal. The premium that you pay would depend on the IDV. It is crucial to choose the adequate IDV and not settle for the lower IDV to get the reduced rate of premium.

  1. Make use of the no-claim bonus.

You can utilise the no-claim bonus benefit to lower your car insurance renewal premium. You can accumulate up to 50% no-claim bonus benefit by the fifth year. No claim bonus can also be ported if you are switching the insurance company.

  1. Opt for voluntary deductibles to lower premiums.

Voluntary deductibles are the amount that you must pay during the claim. You can opt for higher voluntary deductibles to reduce the premium at the time of car insurance renewal online.

  1. Check on the cashless network.

If you are switching the insurer while renewing your car insurance policy, check their network of cashless garages to ensure a smooth claim process.

  1. Add-ons are essential too!

At the time of car insurance renewal, opt for necessary add-ons such as engine protection cover, zero depreciation cover, roadside assistance cover, etc., depending on your requirement and affordability.

Car insurance renewal on time is essential to keep you and your vehicle financially secured against all the insurable risks. Keep in mind all the crucial factors at the time of renewal and renew it on time for continuous coverage.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.