You can get up to a 50% discount on your car insurance premium during renewal. This is because of a benefit known as No Claim Bonus, or NCB. Similarly, there are additional benefits that policyholders can receive. However, one thing that you need to do to take advantage of those benefits is timely car insurance renewal.
This article will break down the 7 ways for you to retain those benefits while you renew your car insurance policy with your current or a new insurer.
Key Actions to Retain the Benefits of Your Car Insurance Policy during Renewal
Below are the 7 ways through which you can retain one or the other benefit of your car insurance policy. You can save on premiums and get discounts by following these key actions.
- Renew on Time
This is the most critical step if you want to retain your benefits during car insurance renewal. Renewing your policy before the expiry date ensures continuous coverage and prevents the loss of accumulated benefits, such as the NCB.
- Utilise the Grace Period
There are many motor insurers in the Indian market that offer a grace period after your policy expires. It is typically 30 to 90 days. Your car insurance renewal within this period allows you to retain your accumulated NCB.
Moreover, if your policy lapses, it can reflect poorly on any insurer, and you may have to pay higher premiums without benefits if you renew your insurance afterwards.
- Avoid Making Small Claims
The NCB is a significant discount on the own-damage portion of your premium. It can reach 50% after 5 consecutive claim-free years. To retain this benefit, you can:
- Avoid making claims for small and inexpensive repairs.
- Pay for minor damages out of pocket.
Remember that if you switch insurers, the NCB is transferable to your new policy. Always make sure that you claim it at the time of renewal by providing details from your previous policy.
- Review and Adjust Coverage
The car insurance renewal is an opportunity to reassess your needs. So, evaluate your current add-ons and remove any that are no longer necessary to reduce your premium.
Additionally, make sure the Insured Declared Value (IDV) you choose at renewal is accurate to ensure fair compensation in the event of a total loss or theft.
- Compare Policies Online
Never blindly renew your car insurance with your current insurer. Always use online platforms to compare quotes, coverage, claim settlement ratios, and network garages of different companies to find a better deal than before. Doing this does the opposite of you losing benefit and adds additional opportunity for you to maximise the value for your money.
- Maintain a Good Driving Record
Accidents are rampant nowadays. Therefore, maintain good driving habits. It not only keeps you safe but also leads to a clean claims history and fewer claims. This ultimately helps you in getting lower premiums and retaining your NCB discounts.
- Install Anti-Theft Devices
Install anti-theft devices certified by the Automotive Research Association of India (ARAI). This can qualify you for a discount on your premium, since most car insurance companies value safety and see it as a factor that reduces your ‘high-risk’ status.
Step-by-Step Guide for a Seamless Car Insurance Renewal Online
For your car insurance renewal online, below is a step-by-step guide you can follow:
- Check Expiry Date: Keep a note of your policy’s expiration date and start the renewal process at least a few weeks in advance.
- Gather Documents: Keep your car’s Registration Certificate (RC), previous policy details, and personal ID/address proofs ready for a faster online process.
- Go Online: Visit your insurer’s official website or their application for a quick, paperless process and potentially better discounts.
- Fill Details and Customise: Enter your vehicle details, select your required coverage and add-ons, and adjust your IDV and voluntary deductible as needed.
- Claim NCB: Make sure your accumulated NCB discount is applied to the premium quote.
- Make Payment: Complete the payment online through a secure method.
- Receive Policy: Your renewed policy document will be sent to your email address instantly.
Bottom Line
To renew your car insurance policy without losing benefits, you must renew it before the expiration date or within the grace period. Moreover, to retain your NCB, you should avoid filing claims for minor damages. By tracking your needs, you can get the best value-for-money offer for car insurance renewal.
This article has been written by the AB Mantra Team, a group of passionate writers and researchers covering topics across fashion, travel, finance, health, education, technology, lifestyle and business. Our goal is to share accurate, easy-to-understand, and helpful information that adds real value to readers. Each piece is carefully reviewed to maintain clarity, reliability and trust.
