Top 5 Things to Check Before Renewing Your Car Insurance

Renewing your car insurance is an essential step to ensure your vehicle remains protected and that you have the coverage you need. However, it's not just about renewing automatically. It’s important to take a closer look at your car insurance policy before committing to renewal. Here are the top five things to check to ensure you’re getting the right coverage at the right price.

Things to Check Before Renewing Car Insurance

1. Review Your Coverage Levels

The first thing to consider when car insurance renewal is whether your current coverage is still suitable for your needs. The value of your car and your risk exposure can change over time. For example, if you’ve upgraded your car or moved to an area with a higher risk of theft or accidents, you may need to adjust your coverage.

a. Third-Party Liability

This coverage is often required by law and protects you if you cause damage or injury to another party. Make sure your policy includes sufficient coverage.

b. Comprehensive Insurance

If your vehicle is newer or more valuable, it may be worth considering a comprehensive policy, which covers both damage to your car and third-party damage.

Reviewing your coverage helps you ensure that you’re adequately protected without overpaying for unnecessary coverage.

2. Explore Additional Add-Ons

While reviewing your car insurance policy, it’s a good idea to look at any add-ons or extra features that may be offered. Add-ons can enhance your policy by covering specific needs that are not included in the standard plan. Some common add-ons include:

a. Zero Depreciation Cover

This option ensures that the depreciation of your vehicle is not deducted from the claim amount.

b. Roadside Assistance

This add-on provides services like towing, flat tyre assistance, and battery jump-starts, which can be especially useful if you drive long distances.

c. Engine Protection

For drivers who want to protect their car’s engine from damage caused by water or oil leaks, this add-on can be beneficial.

These add-ons can offer extra peace of mind and could make your insurance policy more suitable for your needs.

3. Check the Premium Amount

Before you renew your car insurance, take a look at the premium you’re being charged. Insurance premiums can increase due to several factors, such as the age of your car, your claims history, or changes in your location. It's worth comparing the premium with other insurance providers to see if you're getting a good deal.

Several factors influence premium amounts, including:

a. Car Model

Certain models are more expensive to insure due to their value or higher risk of theft.

b. Age of the Vehicle

Older cars often cost more to repair or replace, leading to higher premiums.

c. Driving History

If you have a history of safe driving with no claims, you might be eligible for some rebate on your premiums.

Don’t settle for the renewal premium without checking other options. Shopping around could help you find a more competitive rate.

4. Check the Claim Settlement Ratio

The claim settlement ratio of an insurer is an important factor to consider when renewing your car insurance policy. This ratio reflects the number of claims settled by the insurer in a year, compared to the total number of claims received. A higher claim settlement ratio means the insurer is more likely to process your claims quickly and efficiently.

Before renewing, research your insurer’s claim settlement ratio. If it’s lower than expected or you’ve had issues in the past, it might be worth considering a different provider. Leading insurers like Bajaj Allianz General Insurance Company, having a claim settlement ratio of more than 98%, provide a smoother experience, if you need to make a claim in the future.

5. Understand the Exclusions

It’s crucial to be aware of the exclusions in your car insurance policy. These are the situations or types of damage that are not covered by your policy. For example, some policies may exclude damages caused by natural disasters or damages resulting from driving under the influence of alcohol or drugs.

Some common exclusions include:

1. Wear and Tear

Standard policies usually don’t cover regular wear and tear or mechanical breakdowns.

2. Theft or Loss in Certain Situations

Your car insurance may not cover theft if you leave the keys inside the car or if you fail to lock the car properly.

3. Driving Under the Influence

If you're involved in an accident while driving under the influence of alcohol or drugs, your insurance may not cover the damage.

Before renewing your policy, carefully read through the exclusions to understand what is and isn’t covered. If the exclusions don’t meet your needs, consider upgrading your policy or adding additional coverage options.

Conclusion

Renewing your car insurance is an opportunity to reassess your coverage and ensure you’re getting the protection that meets your needs. By checking your coverage levels, exploring add-ons, comparing premiums, looking into the insurer’s claim settlement ratio, and understanding exclusions, you can make sure that your car insurance policy is suitable for your current circumstances.

Remember, car insurance is more than just a legal requirement; it’s an important financial safeguard. Take the time to evaluate your policy and shop around for the best deal. Your car insurance renewal is an important decision, and making the right choice now can provide peace of mind and financial protection in the future.

*Standard T&C Apply

**Claims are subject to terms and conditions set forth under the motor insurance policy.

***Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

****Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.