Buying a new car is an exhilarating experience. While you buy your dream car, there are a few other obligations that you need to check-off, which include getting an insurance cover. At first, one tends to be worry-free for any damages covered under the terms of your policy.
Most times, the dealership assists in getting your first car insurance policy, but at its renewal date, you need to either consider renewing it or buy a fresh cover. If you decide to renew it, one must consider the necessary concessions at the time of renewal. Thus, it is imperative to timely review the coverage under your policy.
Let us look at a few points that make it clear as to why it is important to review your auto-cover at each renewal date.
Prospects of better deals.
While it may not be the first choice to look for a new insurance company, it is one of the reasons for reviewing your insurance coverage. Some insurance companies may offer you better coverage at a similar price or an equivalent coverage at lesser premiums. It is for you to decide what choice you want to make. Moreover, insurance companies keep introducing new products which can benefit you. Also, the new insurance products introduced can help you opt for additional coverage at comparable prices.
Determine the adequacy of existing car insurance cover.
Although third party car insurance is a mandatory requirement, it is more prudent to purchase comprehensive car insurance. The inclusion of own damage protection along with protection to one’s life is not available in case of third-party cover. When buying comprehensive car insurance, at each car insurance renewal, you can determine if the existing insurance policy is providing an adequate cover for the expected risks. In case the protection offered is more or less than your requirement, you can opt for a different plan or customise it using suitable add-ons.
Adding or removing add-ons.
Add-ons are an exclusive feature of comprehensive car insurance policies. They are essential in determining whether your car insurance policy covers most of the different scenarios. Thus, you must review the coverage of your insurance policy. Say, for example, you reside in a flood-prone area, then buying an engine protection cover is an absolute necessity. At the same time, purchasing a zero depreciation add-on for a second-hand vehicle older than five years does not add much value. These decisions must be decided on individual requirements and need to be reviewed at each policy date.
Checking your no claim bonus (NCB).
Even if you wish to change your insurer, you should remember that if you haven’t made any claims during the policy tenure, a no claim bonus is granted. The quantum of NCB starts at 20% and goes up to 50%. One must keep an eye for the benefits being passed on at the next car insurance renewal date, including such no claim bonus. Along with NCB, any other concession in your premium must be checked for and needs to be reviewed at the time of renewal.
To conclude, as we keep checking our finances periodically, there needs to be a review for your car insurance policy too. It will not only help in getting better deals but more comprehensive coverage on a year-on-year basis.
Be First to Comment