As per the Motor Vehicles Act of 1988, it is mandatory for every vehicle plying on Indian roads to have a valid motor insurance policy. Non-renewal of motor insurance can land a vehicle owner in trouble, with a fine of ₹2,000 or imprisonment of up to 3 months, or both. Hence, it's essential to renew your car insurance policy promptly.
However, before renewing your car insurance, there are certain factors you should keep in mind. For example, rather than physically visiting your insurer's office, you can choose to renew your car insurance policy online. This way, you can complete car insurance renewal quickly and conveniently from the comforts of your home.
Read ahead to know some useful tips you should keep in your mind while renewing car insurance online.
Details required for car insurance policy renewal
To renew your car insurance online, you’ll need the following information:
- Existing Policy Details: Your current insurance policy number and insurer details.
- Vehicle Information: Registration number, make and model, year of manufacture, and fuel type.
- Personal Information: Name, contact details, and address as per the registration certificate (RC).
- No Claim Bonus (NCB) Status: If applicable, this will be considered for discounts.
- Add-on Preferences: If opting for comprehensive car insurance, decide on extra coverage like zero depreciation, engine protection, or roadside assistance.
- Payment Details: A valid credit/debit card, UPI, or net banking details for online transactions.
Steps for online car insurance renewal
Renewing your car insurance online is an easy and hassle-free process. Follow these steps:
- Visit the Insurer’s Website or an Aggregator Portal: Log in to your insurer’s website or a trusted insurance comparison platform.
- Enter Your Details: Provide your car’s registration number and current policy details.
- Select Your Coverage: Choose between third-party insurance or comprehensive car insurance, and add any additional riders if needed.
- Check Premium & Discounts: Verify the final premium, ensuring your No Claim Bonus (NCB) is applied if eligible.
- Make the Payment: Use secure payment options like UPI, net banking, or a credit/debit card to complete the renewal.
- Receive Your Policy Instantly: Once the payment is successful, you’ll receive the renewed policy via email.
Things to keep in mind while renewing car insurance
To ensure smooth renewal and maximum benefits, consider these key factors:
- Policy Type: Decide if you want to continue with third-party coverage or switch to comprehensive car insurance for broader protection.
- Premium Affordability vs. Coverage: A lower premium might seem attractive, but ensure it doesn’t compromise essential coverage.
- Add-on Benefits: Evaluate whether you need extra features like zero depreciation, return-to-invoice, or roadside assistance.
- Voluntary Deductibles: Opting for a higher deductible reduces your premium but increases out-of-pocket expenses during claims.
- Claim Settlement Ratio: Check the insurer’s claim settlement ratio to make sure they have a good track record of processing claims efficiently.
Common mistakes to avoid when renewing your car insurance plan online
Many car owners make avoidable mistakes during renewal, which can lead to financial losses or claim rejections. Here are some tips on how to make car insurance renewal an error-free process-
- Depending Upon Someone Else
Rather than depending upon someone else or asking a broker to do it on your behalf, you can always renew your car insurance policy yourself. New-age insurance companies have simplified the process of online car insurance renewal. All you need to do is head here to our website, enter your renewal details and pay the premium online.
When you renew your car insurance policy yourself, you are in a better situation to analyse your requirements, determine the extent of coverage, and make an informed decision.
- Waiting Till the Last Date
As mentioned before, driving an uninsured car is a punishable offence under the Motor Vehicles Act, 1988. Hence, you should renew your car insurance policy well before its expiry date. Additionally, renewing your car insurance before its expiry date may save you from the hassles of getting your car re-inspected by the insurance provider.
Also, suppose you fail to renew your car insurance policy even after 90 days of its expiry date. In that case, you will lose out on your accumulated NCB as it will automatically get reset to zero.
- Not Choosing the Right Cover
While renewing your car insurance policy, you can add/modify your policy coverage and add-ons. There are two types of car insurance cover you can avail of – standalone third-party car insurance liability cover or a comprehensive cover (third party liability + own damage cover).
As per the law, you should mandatorily renew your car insurance policy's third-party component before its expiry date. However, a wise decision is to opt for the comprehensive cover since it also keeps your car financially protected against the damages, should there be an accident or collision.
- Not Choosing the Correct IDV
When you opt for a comprehensive car insurance policy, you're required to set an Insured Declared Value (IDV) of your vehicle. This will be the maximum value the insurance provider is liable to pay in case of the total loss of your car.
It's important to choose the right IDV for your car. In case you choose a lower IDV, you may not get enough compensation if your car gets damaged beyond repairs. On the other hand, if you choose unnecessarily high IDV, it may swell up the premium amount for your car insurance renewal.
NCB or No-Claim Bonus is the insurance provider's discount to the policy buyer after every claim-free year. So, if you haven't made any claim during the current policy period, do not forget to claim NCB at the time of renewal. By claiming the NCB, you can get up to a 50% discount on the car insurance premium calculated (for own damage cover), which you need to pay during your car insurance policy renewal.
- Not Choosing the Correct Add Ons
Many insurance companies allow you to attach add-ons or riders (at an additional premium) with your car insurance policy. These add-ons are meant to enhance the coverage of your policy. You need to be diligent while selecting the add-ons at the time of renewal. It's because you neither want inadequate coverage nor an unnecessarily high premium.
Some add-ons we recommend adding at the time of car insurance policy renewal include engine protection cover, zero depreciation cover, accessories cover and roadside assistance cover.
FAQs
- Can car insurance be renewed after it expires?
Yes, but if the policy has lapsed, your car may require an inspection, and you could lose benefits like NCB. It’s best to renew before the expiry date.
- What is the difference between third-party car insurance and comprehensive car insurance?
Third-party insurance policy provides coverage against damages to other people and their property, while comprehensive car insurance covers third-party liabilities and damages to your vehicle.
- How do I check if my No Claim Bonus (NCB) is applied?
During renewal, your insurer will display the NCB discount if you haven’t made any claims in the previous year. You can also verify it in your old policy documents.
- Can I change my insurer while renewing my policy?
You can switch insurers during renewal. Ensure your No Claim Bonus (NCB) is transferred to the new insurer.
- Do I need to carry a hard copy of my insurance policy?
A digital copy stored in DigiLocker or mParivahan is legally valid and can be used as proof when required.
Conclusion
Renewing a car insurance policy online is a convenient and hassle-free method to keep your vehicle adequately protected against adversities. Whether you opt for third-party or comprehensive car insurance, keeping your policy active ensures compliance with legal requirements and peace of mind. Also, it allows you to choose your add ons and customise the policy to suit your requirements better.
In case you're looking to renew your car insurance policy, you can do it easily on our website. ICICI Lombard's car insurance renewal process is simple and hassle-free. All you need to do is head to our renewal page, enter your policy details, and pay the premium using your debit/credit card or net banking facility.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.