By Ronni Peel
Cars have become a necessity for large and joint families. They have an advantage over others as they can roam wherever they want without worrying about public transportation services. They all can enjoy their trips and outings without any disturbance and inconvenience. All of them have the liberty to schedule their travels and enjoy it to the fullest. They are in no hurry to catch the train or bus and can tour the place conveniently.
Whether it is a brand-new car or a second hand one, car insurance is mandatory for all car types. It helps protect the vehicle from damage and the owner from paying for its costly repairs and maintenance. For a country like India with high traffic congestion rate and accidents, all car owners must get their four-wheelers insured. The Indian Government has made it mandatory for all cars to have a third-party liability insurance cover. The Motor Vehicles Act, 1988 has introduced this rule, where all those without insurance pay a fine or penalty.
The main reason why people hesitate to buy or opt for car insurance renewal is the rising premium costs. They wonder why the insurance premium does not depreciate with the car’s value. At first, the Insurance Regulatory and Development Authority of India (IRDAI) had proposed a 50 per cent increase in third-party motor insurance premium to help insurance companies maintain a balance between the number of claims made by the insured and the loss ratios they face.
Following are some ways to reduce the renewal cost of the insurance plan:
- Renew the policy before it expires:
It is the simplest and most necessary of all. In case the insured misses the online car insurance renewal date before it lapses they have to apply for a new policy, which means they will have to get the vehicle inspected plus lose out on the NCB (No Claim Bonus). And no NCB would mean no discount on the policy. All these factors are enough for a good increase in premium.
- Avoid making claims for small expense:
All insurance policyholders ought to get a maximum of 50 per cent of NCB if they do not claim for consecutive years. It allows their premium to get discounted, thus saving a fair amount.
For example, if the car gets damaged in the parking and has a small dent, the cost of repairing the dent is lesser as compared to the NCB accumulated. Would people still want to let go of the discount by claiming a negligible amount? And in case they happen to make a claim, next year while renewing they might have to pay a massive amount for the premium since they have already lost the accumulated bonus. So, think twice before claiming for a small amount. Instead, pay it from the pocket.
- Buy and compare policy premiums online:
People buy groceries, home décor, expensive electrical appliances, etc., online because of the convenience and the discounts in rates. They search and compare on different websites for the best deals. Then why miss buying insurance policies online? The advantage of an online insurance policy is that they can compare premiums of other insurance companies and choose them based on reviews, popularity, claim settlement ratios, etc. This possible on apps as well. You could consider LGI LivMobile App, for instance.
Most importantly, the best thing about car insurance online renewal is that they can get heavily discounted rates on the premium and use other payment apps for getting the best offers.
