Gone are the days when renewing a car insurance policy used to be a painful task. One had to make numerous phone calls, fix up a meeting with the insurance agent, visit the insurer’s office personally, and get the policy renewed. In today’s digital era, renewing your car insurance policy is extremely simple, and the same is possible online. With just a few clicks and inputting the necessary data, one can be assured that the vehicle will stay protected without having to visit the insurance office directly. Here, we will walk you through the details of how to renew motor insurance online and the steps you need to follow.

Details Required For Car Insurance Policy Renewal

Before you begin the process of renewing your car insurance policy online, make a checklist of all necessary documents and see that you have everything with you. This will help speed up the process and save you time in looking for the requisite information.

The list of required documents/details that you will need are:

1. Full Name
2. Residential address
3. Your car’s make and model number
4. Car registration number
5. Previous policy number details
6. Add-ons you wish to choose
7. Payment details

Steps to Renew Car Insurance Online

Now, let’s look into how to renew car insurance online. The following steps will help you do so.

1. Select the Insurance Company

The first and foremost step is to decide upon the insurance company you feel is right for you. Ideally, the insurer that has the best pre- and post-sale service should be selected. Besides, you should also consider the coverage offered and whether it is fairly priced.

2. Decide the type of insurance

Select the type of insurance plan you wish to buy. There are two types of policies available in the market: third-party and comprehensive car insurance policy.

A third-party car insurance policy is mandated by law, where only third-party damages to property/person are covered. However, you may choose a comprehensive car insurance plan to cover your own damages as well.

3. Enter your details

You will need to fill out a form by entering your details for the car insurance renewal.

4. Select the Add-Ons

If you are choosing a comprehensive car insurance policy, you can select various add-ons the insurer offers to extend the scope of coverage. The commonly offered add-ons are —

Zero Depreciation: With this add-on cover, your car will be valued at its original value and not the depreciated value.

Roadside Assistance: With this add-on coverage, if your car breaks down in the middle of the road and needs to be towed, the insurance company will arrange for the towing and also pay for the same.

Engine Protection: This add-on helps to cover the engine when it needs to be repaired or replaced.

Return to Invoice: In case of theft or total loss, this add-on will consider the value of the car at the ex-showroom price.

NCB Protect: With this add-on coverage, you will be able to retain your no-claim bonus for making up to two claims in a policy year.

5. Make Payment

Based on the add-ons selected, your final insurance premium will be decided. Once you have gone through the same and accepted it, you will be taken to the payment portal. Upon successful completion of the payment process, you will receive a copy of your motor insurance policy on your email ID.

Conclusion

Now that you know how to renew car insurance online, you can easily do it in a hassle-free manner. Keep your car safe and insured, and stay on the right side of the law.

The Motor Vehicles (Amendment) Act 2019 came into effect on September 1, 2019, with an intent to curb road accidents in India and boost road safety. This massive update to the Motor Vehicles Act 1988 has led to the introduction of fresh penalties and license requirements for vehicles along with new operating standards for both personal and commercial motor vehicles.

The new Motor Vehicles Bill brings forth a jaw-dropping surge in the fines for traffic rules violators. The Bill also seeks to spread awareness towards road safety and aims to discourage drivers from flouting traffic rules and regulations.

Here are some of the key points of the Motor Vehicles Act (Amendment) Act 2019 that you must know:

Mandatory Motor Insurance

The Bill instructs the Central Government to create a special Motor Vehicle Accident Fund that will be designed to provide compulsory vehicle insurance to vehicle owners. Car insurance and two-wheeler insurance offered by the Government has been targeted to ensure:

• Medical treatment for road accident victims under the ‘golden hour’ scheme.
• Monetary compensation to the next of kin of a person who has died in a ‘hit and run’ accident.
• Monetary compensation to the next of kin for a person grievously injured in a ‘hit and run’ accident.
• Monetary compensation for to other victims as identified under the new guidelines.

Vehicle Recall

Under the amended Motor Vehicles Act 2019, the Central Government reserves the rights to recall a vehicle of any make and model if it poses a persistent threat to drivers, environment or the public at large. The ‘recall’ use has been hailed as a great step towards bringing accountability in the auto industry. With the recall clause, a vehicle manufacturer will be liable to:

• Provide full reimbursement to the vehicle owner against the recall.
• Substitute the recalled vehicle with a replacement vehicle that has similar or higher specifications.

Road Accident Compensation

The amended act prescribes compensation and immediate cashless treatment for accident victims with the ‘golden hour’ period. Under the clause, the golden hour is described as the ‘one-hour’ post a major accident, wherein prompt, life-saving medical treatment can be given to the victim, thus saving his/her life. The act also envisions providing interim relief to third-party insurance claimants, seeking compensation.

• Minimum compensation in case of death in a hit & run case: Rs. 2 lakh.
• Minimum compensation in case of grievous injury in a hit & run case: Rs. 50,000.

Legal Protection for Good Samaritans

Under the good samaritans provision, any civilian administering aid (medical/non-medical) to an accident victim will not be pursued with legal/criminal action due to the death of the victim. The same is applicable in the case of seriously injured victims. However, the legal cushion is based on three factors:

• The assistance given to the victim should be in good faith.
• The assistance should not be based on rewards expectations, monetary or otherwise.
• The assistance given should be entirely voluntary.

Increased Penalties

The main talking point of the new Motor Vehicles (Amendment) Act 2019 is the steep rise in the monetary penalties for traffic violators. Despite facing opposition from various sections, the hiked penalties have been enforced and have already witnessed rigorous implementation. If you drive without motor insurance then you will have to pay high penalty.

A majority of the states have welcomed this surge aimed at reducing traffic violations, drastically. Below is the full list of traffic violations and their revised fines as per the Motor Vehicles (Amendment) Act, 2019:

There are primarily two types of covers when it comes to car insurance: these are own damages and third-party covers. Out of these, third-party insurance is made mandatory for all vehicles under the Motor Vehicles Act. These pay for damages caused to the third person by your vehicle in the event of an accident.

Under third-party claims, the maximum claim payout is restricted to just ₹7.5 lakh, if there is only damage to property. However, if the accident results in bodily injury or loss of life, then there is currently no cap on the amount that can be claimed.

Ideally, when someone rams into your car, resulting in huge repair bill, and with no fault of yours, then the cost should be borne by the driver at fault. But, that happens in rare cases. The reason being that to claim third-party insurance, the driver who is not at fault needs to take the erring driver to court and prove he’s guilty. Court trials can be a lengthy, costly and time-consuming affairs and hence very few people actually take this route.

Knock-for-Knock Agreement

So, what happens in the above case? Insurance companies acknowledge the tedious claim process associated with third-party claims. Hence, all non-life insurers in India have to, on an annual basis, sign an agreement with each other. Under its terms, they choose to pay for the damages if both parties have own-damage cover, rather than making use of the third-party cover of the driver at fault.

This agreement is called knock-for-knock agreement and has been created by the General Insurance Council. The dictionary definition is that it is an ‘agreement between vehicle insurance companies, in which each insurer pays for damages to the vehicle insured by it, without attempting to establish blame.’

Why is it Required?

As we all know, the process of filing third-party insurance claim is long and tedious with police and courts involved. This agreement is not mandated by law, but rather, is the result of an understanding between the insurers. This agreement is entered into to avoid the unnecessary delay that is encountered by dragging third-party claims to court.

What Impact it has on You?

This agreement between insurers is meant to avoid the delay that is associated with a court hearing, which can stretch into months and sometimes years. It also saves the concerned parties the frustration that is encountered while filing an FIR and obtaining a charge sheet from the police. Most importantly, it is meant to quickly cover expenses for the damage incurred without causing inconvenience to the customer.

This agreement is voluntary though and the customer can choose to go with third-party claims if he wants to. On the other hand, if the customer chooses to go with own-damage insurance (as part of this agreement) then he faces losing his no-claim bonus, even if the fault is not his.

Getting own damage motor insurance is always better, as it not only covers the third party expenses but also takes care of damage to your car in the event of an accident.

Air pollution poses the most pressing health risk to the global populace but it’s far more pronounced in India. According to the World Air Equality Report, twenty-one of the top thirty cities in the world, suffering from severe air pollution, are in India.

According to the World Health Organisation, hazardous air pollution is the reason behind a staggering seven million premature fatalities globally, mainly due to increased morbidity from a host of cardiovascular concerns, respiratory infections, and cancers.

While rapid industrialisation and emissions of greenhouse gases are significant contributors to the menace, vehicle pollution is guilty of exacerbating air contamination as well. That being said, no matter which part of the country (or world) you live in, you can always take steps in the right direction. This includes altering your commuting and travelling habits.

Use a cleansing agent

With time, harmful deposits start to accumulate in a car’s engine, resulting in decreased efficiency and increased emissions. Adding a cleansing agent in the fuel system helps to remove the deposit build-up and bring down emissions. Note that it is wise to invest in good-quality fuel containing these cleaning additives.

Before you take out your car for a spin, make sure you are adding the cleansing agents into the tank. The fuel cleaner and exhaust should ideally be used every two months for optimum efficiency.

Use better (alternative) fuels

At a gas station, you may have noticed fuel booths that are labelled ‘super’ or ‘premium’. These are alternative fuels that are cleaner substitutes for the regular diesel or gasoline. Thinking about whether these expensive alternatives are worth it? Indeed they are, considering they come with active purifying agents that help to check engine deposits and dirt, thereby limiting emissions and bettering fuel economy.

You might also observe a significant difference in performance. However, this ‘difference’ will depend on the age and make of your car, and your style of driving.

Replace the oil periodically

It is the engine oil that keeps your vehicle moving – lubricating it and preventing any wear and tear. Therefore, it makes sense to change the oil at periodic intervals to ensure your car performs optimally. Driving smart and efficiently is the key here. Go easy on the brakes and gas pedal to cut down car pollution.

Check the manufacturer’s handbook and maintenance schedule; it will help you stay on top of the recommended service intervals. Also, check the level of engine oil between every servicing session and top it up in keeping with the guidelines. Only use oil that is recommended by the manufacturer.

Be it car or two-wheeler insurance, all vehicle owners are required to carry physical copies of their insurance papers. Plying on the roads without insurance is against the law and enforcement officials can demand these papers anytime at random checkpoints. If a vehicle owner is caught without the papers, for whatever reason, then a fine is imposed.

What is e-Vahan Bima?

e-Vahan Bima is a motor insurance policy that is sent to the insured in a digital form. The Insurance Regulatory and Development Authority of India (IRDAI) has come out with this initiative in a bid to digitise vehicle insurance documents. Not only that, this policy also comes with a QR code that has all the details of the insured’s policy.

When the law enforcement authorities ask you for your insurance documents, all you have to do is show them this QR code on your smartphone. The police official will only need to scan the code and all the information will be made available to them, which will be directly taken from the insurer’s database or the central database of Insurance Information Bureau (IIB). If there is no internet connection, an SMS-based verification is also in place.

The Benefits of Digital Vehicle Insurance

Getting the policy papers in a valid, legal format does away with the need of carrying physical copies of your policy papers, thus enhancing convenience. Fraud detection will also get a fillip, as it will become difficult to get away with fake papers as the same can be verified using QR code instantly.

There will also be benefit of cost savings that is made possible due to insurers not required to send out physical documents to policyholders. The resultant cost saving can be passed on to customers in the form of reduced cost of policies.

The policyholder does not have to pay any additional charge for this digital insurance policy. Moreover, since this type of policy is entirely paperless in nature, it is environment friendly as well and will lead to protection of trees.

The e-Vahan Bima was first launched in the state of Telangana on January 2, 2016. This means that digital vehicle insurance policies are accepted by the state’s traffic department. Ultimately, this initiative will be rolled out across the length and breadth of India.

Buying a car is a big deal for many. It is a status symbol and a vehicle of convenience for those who buy it. However, the congested streets also ensure that unfortunate incidents are not far away. Buying car insurance protects you from expensive expenses that may come your way.

Bhubaneswar, the "Temple City" and the capital of Odisha, gets its moniker from its numerous ancient temples that attract thousands of tourists from across the world. Besides its cultural significance, Bhubaneswar has become a booming educational and commercial hub. And with a thriving tourism landscape, road transport is vital in driving economic progress. The Bhubaneswar Regional Transport Office (RTO) plays an integral part by offering transportation services, overseeing traffic regulations, and promoting road safety. Operating under the guidance of the Odisha Transport Department, the Bhubaneswar RTO facilitates vehicle-related services and actively contributes to enforcing traffic rules.

RTO Office in Bhubaneshwar

1. RTO Office (OD-02)

2. RTO Office (OD-33)

Jalandhar is a busy city in Punjab known for its vast population. It serves as an administrative centre and has well-connected roads to other parts of the state. The Regional Transport Office (RTO) of Jalandhar, identified by the code PB 08, oversees traffic-related matters within the city.
The RTO office Jalandhar has various responsibilities, including addressing vehicle-related issues, enforcing traffic regulations, monitoring offences, and prioritising initiatives to enhance road safety. As a key administrative body of the city, the Jalandhar RTO plays a crucial role in ensuring efficient and safe road networks across the city.

RTO Office in Jalandhar

Here are the postal addresses of the main Jalandhar RTO and those of the peripheral RTO offices at Shahkot, Nakodar, and Phillaur:

Understanding mobile self-inspection and its benefits

Insuring your car is of utmost importance to protect yourself from third party liabilities in the event of an accident involving your car. There is no cap on the liability if a person is injured or killed in an accident caused by your car. The liability due to damage to third party property is capped at ₹7.5 lakh.

The consequences of not getting your car insurance done in time are worrying. The reasons for your car remaining uninsured are trivial. These include non-payment of premium, late payment of premium, and failure to renew. The renewal of a lapsed policy is troublesome. Renewal in time is very easy.

Renewing a lapsed car insurance policy is a long-drawn process. The car owner has to inform the insurance company and get a physical survey of the car done, which could take a few days. The survey of the car is the critical part of the process to renew a lapsed policy. Hitherto, this was the only choice. ICICI Lombard has now made renewing a lapsed policy a much easier process, which takes just a couple of hours.

Mobile Self-Inspection

ICICI Lombard has deployed a digital channel to make life cooler for a car owner even if the insurance policy has lapsed. Mobile app ‘Insure’ now has a ‘mobile self-inspection’ feature.

The car owner has to just pay revival premium online or through the mobile app, following which the customer is prompted to upload the self-inspection video via the Insure app. The policy is generated within a few hours after the self-inspection video is approved as per ICICI Lombard’s underwriting guidelines.

Car insurance companies use their algorithms based on your personal information and company claim data to determine your policy rates. Knowing what factors affect your premium rates can help you make a more informed decision when purchasing insurance. The rule of thumb is to choose a policy that perfectly balances the coverage amount with the premium amount.

Here are the factors that play a crucial role in determining your car insurance premium:

1. Model of the Vehicle

Insurance companies will charge you a higher premium if you are going to insure your Ferrari. Technically, the insurance premium depends on the value of your vehicle, which is termed as Insured Declared Value (IDV). Besides the model, the vehicle size is also a deciding factor in car insurance premium rates. Big cars like SUVs are generally safer than small cars in accidents. Additionally, large cars with similar safety ratings as small cars have lower premium rates. Engine to body size ratio also impacts premium rates. For example, insurance for a car that comes with a V8 engine costs more than a small car with a V4 engine.

2. Manufacturing and Registration Dates

The manufacturing year and registration date of the vehicle are also taken into account to decide insurance premium rates. So the older the car, the higher the premium you will have to pay. A car is a depreciating asset which means as your car gets older, repair costs increase since spare parts get harder to find.

3. Purpose of the Vehicle

The manufacturing year and registration date of the vehicle are also taken into account to decide insurance premium rates. So the older the car, the higher the premium you will have to pay. A car is a depreciating asset which means as your car gets older, repair costs increase since spare parts get harder to find.

4. Gender & Age

According to statistics, young males are more prone to accidents than female teenagers. So, young men usually incur higher premium rates than young women. The premium rates get stabilized once you reach the age of 25. However, older men generally have cheaper premium rates than women.

5. Marital Status

According to the study, marital status is almost as significant in car insurance premium rates as age and gender. On an average, a married 22-year-old pays lesser premium than a single 20-year-old for the same policy. Premium differences between married and unmarried drivers drop off significantly as they get older. Notably, a marriage will generally qualify you for a healthy discount on your car insurance premium. The important downside is that insurance companies will factor both spouses’ driving records when creating the quote. If the person you marry has multiple accidents or citations, you may end up paying higher premiums.

6. Personal Driving Behavior

If you have been involved in accidents or have made previous claims, the insurance company will infer that you are more likely to make another claim. If you have a bad driving record, the company might even deny you insurance altogether. Other personal details that affect your premium rates include the purposes you use the car for, the distance you drive. You might be able to get a discount on your premiums if you don’t use your car every day for work.

Under the Motor Vehicles Act, securing four-wheeler insurance is mandatory for car owners in India. However, delving deeper, does the landscape of car insurance hold distinct implications for married couples? In this blog, uncover the nuances and benefits unique to ‘car insurance for married couples.’

Driving Together: Navigating Car Insurance for Married Couples

The average car insurance cost for married couples in India typically ranges from INR 10,000 to INR 30,000. When considering car insurance for married couples, here are some key points to be aware of:

1. Opting for joint policies can result in significant cost savings, effectively reducing married couples’ average car insurance cost.
2. Married couples with more than one car can benefit from multi-car discounts. Insurers often provide discounts when multiple vehicles are insured under a single policy.
3. Insurance companies perceive married couples as lower-risk drivers than singles. This lower risk perception often translates into reduced car insurance premium rates.
4. Assess your coverage requirements together. Comprehensive and third-party liability coverage costs can vary from one state to another. For instance, in Maharashtra, comprehensive coverage may cost around INR 19,500, while in Karnataka, it could be around INR 18,800.
5. A strong combined credit history as a married couple can positively influence your insurance rates.
6. It’s important to regularly review and update your policy to reflect changes in driving habits or personal circumstances. This ensures that your coverage remains relevant and aligned with your current needs.

Insurers decide insurance premiums according to the risk profiling of car insurance applicants. High-risk car insurance can shoot up premiums, but what is high-risk car insurance, and how do insurance companies measure the risk element?

Let us understand the nuances in the following passages.

High-Risk Car Insurance

Some insurers may consider your insurance application a high-risk insurance case after assessing the following factors;

• A history of frequent claims can put you in a high-risk zone and inflate your premium amount.
• Young people (30-35) are less experienced drivers, which may trigger higher premiums.
• Some locations fall into high-risk zones, given the high incidence of thefts and accidents. Car owners from such areas may need to pay higher premiums for high-risk car insurance.
• Some insurance companies consider unmarried people high-risk insurance candidates compared to married people who enjoy lower premium car insurance policy. The logic supporting this view is that married people are financially stable and responsible drivers.

Car insurance policies are mandatory for every vehicle owner in India. It keeps them protected from various financial burdens, damage, etc. However, did you know that the type of vehicle you own can have an impact on the insurance premium? In this blog, you will gain a deep insight into the average price of a car insurance policy based on the vehicle type.

Understanding how your vehicle type impacts car insurance cost?

Car insurance rates vary by vehicle type in the following ways:

• Sedans are recognisable by their widespread use and are considered safer and more stable, with relatively low premiums. Third-party liability insurance costs are between INR 5,000/- and INR 10,000/-, and comprehensive coverage costs are between INR 10,000/- and INR 20,000/-.
• SUVs are known for their durability; therefore, their premiums—from INR 7,000/- to INR 15,000/- for third-party and INR 15,000/- to INR 30,000/- for comprehensive coverage—are higher, given the apparent risks involved.
• Popular for being the most reasonably priced, hatchbacks have the cheapest premiums, ranging from INR 4,000/- to INR 8,000/- for third-party and from INR 7,000/- to INR 15,000/- for comprehensive coverage.
• Luxury automobiles are expensive; hence, they command hefty premiums that range from INR 8,000/- to INR 18,000/- for third-party liability and INR 10,000/- to INR 25,000/- for comprehensive coverage.

Yet another type of car insurance is available, called temporary VIN insurance or chassis number insurance. This type facilitates you to buy the necessary insurance to register your vehicle, following which you can apply for permanent insurance. This insurance type is typically applicable for imported or custom-built cars.

Factors that influence car insurance cost

Apart from the vehicle, several other aspects can have a massive effect on the cost of the vehicle policy in India. This includes the following:

• The car’s model and age
• Age and gender of the owner
• Engine size (cubic capacity)
• Fuel type (electric/diesel/petrol)
• Location of registration
• Claim history
• Type of insurance coverage (comprehensive or third-party)
• Add-ons, such as roadside assistance, zero depreciation, etc.

Breakdown of premium components

In India, comprehensive car insurance premiums generally include 18% GST, a mandatory third-party premium and an own-damage premium covering the insured vehicle. Optional add-ons like engine protection or zero depreciation may raise the cost. However, discounts such as No Claim Bonus (NCB) and other offers can reduce the final premium.

How vehicle type affects risk profile

Faster and larger vehicles are viewed as higher risk by insurance firms. For instance, a luxury sedan or an SUV is more expensive to repair and is more likely to be damaged or stolen. This increases the risk for insurance firms, so they charge more. On the other hand, a small electric or hatchback has lower repair costs and might be considered much safer, which leads to lower premiums.

Cost difference by fuel type

Fuel type plays a role in determining vehicle insurance costs. Petrol vehicles normally have lower premiums. Diesel vehicles usually cost more to insure because of their higher engine capacity.

Electric vehicles generally have higher insurance premiums due to their expensive components, especially the battery. However, they may qualify for special discounts under government policies.

How to reduce your insurance premium

When you want to lower the insurance premium, the following tips will help:

• Pick a higher voluntary deductible
• Install all the anti-theft devices
• Avoid frequent or small claims
• Compare the insurance policies online
• Renew the policy on time to avoid penalties
• Drive safely to earn NCB (No Claim Bonus)

Conclusion

Your vehicle type plays a massive role in determining the car insurance premium. Whether you have a premium SUV or a simple hatchback, knowing how insurance costs are calculated can help you make wise financial decisions. To explore your options and receive tailored advice, fill out the form on this page and get expert support for choosing the right car insurance online.

FAQs

• Does the vehicle’s shade affect the insurance premium?

No. In India, a car’s colour will not have an impact on the insurance premium.

• What is NCB (No Claim Bonus)?

NCB is a discount provided for not making any claims during a policy year. It can go up to 50% over time.

• Is it possible to transfer an online policy to a new vehicle?

Yes. You can easily transfer your current insurance policy to your new car by informing the insurer and updating the vehicle information.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. 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.

When buying four wheeler insurance, age, gender, and other factors are considered. The following passage explores how car insurance prices vary by age and the reasons behind such variance.

Let’s explore this interesting subject further.

Understanding How Age Impacts Car Insurance Premiums

Car insurance rates by age usually remain high during young age and low in senior years. You may wonder why we must pay higher premiums at a young age and lower as our hair turns grey. Let us understand the reasons in the subsequent passages.

• Research says people at a young age, say in their 20s, are more open to taking unnecessary driving risks, causal driving with friends or partners, rash driving under the influence of alcohol or other intoxicants, etc. The ratio of accidents is higher among younger people compared to their senior counterparts.
• Insurance companies inflate car insurance prices by age after considering risk factors. Prominent risk factors among young people are lack of skills and experience, neglect of wearing seat belts, getting distracted while driving, speeding, and low adherence to traffic rules.
• These characteristics among people in their 20s and early 30s put them into the high-risk category and affect car insurance approval and premiums.
• Let us come to senior people. Most insurance companies offer affordable car insurance products for experienced people in their 40s and 50s. Married people with driving experience are less likely to get into accidents; they are expected to be more responsible drivers and abide by traffic rules on the road.
• These factors make senior people low-risk car insurance applicants, and insurers charge lower premiums. However, the premium might shoot up again at more advanced ages, such as 65 and above, because of age-related issues.
• To sum up, insurance companies offer high-premium four-wheeler insurance to people between 18 and 25 years and starts decreasing after 25 years. Those in their 40s and 50s get the best car insurance products. People in the late 60s get counted in the high-risk category again, and the premiums shoot up.

For example, the premium for a 16-year-old driver can be as high as 16% at INR 4,000. This rate goes down as the driver’s age increases; at 22 years, the premium more than halves to 7% to settle at INR 3,000.

Car insurance is mandatory in India as per the Motor Vehicles Act. With the increase in car sales, many insurers are offering lucrative insurance covers, spoiling the customer for choice. Insurance cover for one year is mandatory when a new car is purchased. Post one year, it is the car owner’s responsibility to renew the insurance cover.

Most car owners prefer to continue with their original insurer and don’t bother to take a second look at the other, more beneficial and cheaper options, available in the marketplace. Sparing a few minutes before renewing your car insurance can yield great savings in the long term. Here are a few aspects that you must look into before renewing your car insurance.

Car Insurance Policy Comparison

Most people might be tempted to just go with their current insurance policy, as that seems to be the most convenient and hassle-free way to get things done quickly. But there is also the possibility that the insurer has made revisions to the terms and premium calculations.

It is always better to browse through the premium charged by other providers. This is not a time-consuming process as there are hundreds of websites available that let users compare different car insurance policies online. A little research from your end can save you valuable money over the period of coverage.

Value of Your Vehicle

A little calculation of the current value of your car, taking into account the depreciation factor, can save you a lot of money on your premiums. Once the depreciated value of the car is known, it only takes little negotiation with your insurance agent to gain big on premiums.

No Claim Bonus

No claim bonuses (NCBs) are awarded to policy holders who do not make a claim in the preceding year. Claiming this bonus before renewing your policy can result in lower premiums for the next year. It doesn’t matter whether your insurer is the same or different as NCBs are transferable from insurer to insurer. Over the years NCB can lower the premium amount by as much as 50%.

Relocating to a new city or state in India involves several responsibilities, and updating your car insurance is one of them. This step is often overlooked, but failing to make the necessary changes can lead to complications, especially when it comes to filing a claim. Here's everything you need to know about handling your car insurance during a move.

Impact of relocation on insurance premiums

Your car insurance premium can change when you move to a new place. This is because premiums are partly based on the area where you live.

The country is divided into two different zones for insurance purposes:

• Zone A: Big metro cities like Mumbai, Delhi, Bengaluru, Chennai, Pune, Kolkata, Hyderabad and Ahmedabad.
• Zones B: All other cities in the country.

If you are moving from a metro city to a smaller town, your premium may go down. On the other hand, if you are moving to a busier or more accident-prone area, your premium may increase.

Should you cancel or continue the existing policy?

If you already have an active car insurance policy, there’s no need to cancel it. Insurance companies allow you to transfer the existing policy to your new address.

To do this, you simply need to inform your insurer about the move, provide proof of your new address and update your vehicle registration. Some insurers may charge a small fee for these changes, and your premium might be revised based on the risk profile of your new location.

Only cancel your existing policy if you are unhappy with the current insurer, you find a better deal with another company or your current insurer does not operate in your new state.

Also, if you have earned a no claim bonus in car insurance, continuing the same policy helps you keep that discount when you renew.

Re-registration of vehicle in a new state: Step-by-step guide

When you move to a new state and plan to live there for more than 12 months, you must re-register your vehicle. Here's how:

• Step 1: Get a No Objection Certificate (NOC) from your current RTO (Regional Transport Office).
• Step 2: Transport your car to the new city. Carry important documents such as the NOC and original RC (Registration Certificate).
• Step 3: Apply for registration under the new state’s laws using Forms 29 and 30, along with documents like the NOC, RC, insurance certificate, PUC (Pollution Under Control) and vehicle chassis imprint.
• Step 4: Pay the road tax in the new state.
• Step 5: Authorities will verify the vehicle and documents to ensure everything is in order.
• Step 6: After approval, you will get a new registration number. Install new number plates and keep your updated RC with you.
• Step 7: Update insurance records with your new registration number.

Online tools for insurance address and policy update

Most insurance providers now offer digital services through their official websites or mobile apps, allowing policyholders to update personal details such as residential address, phone number or email ID without visiting a branch.

To make changes, you typically need to log in using your policy number or registered mobile number, navigate to the profile or service request section and upload valid proof of the new address, such as an Aadhaar card or utility bill. Once submitted, the update is usually processed within a few working days.

How relocation affects the claims process

If you shift to a new city and don’t update your insurance details, it can cause problems when filing a claim.

Possible issues include:

• Claim rejection: Wrong address or registration number may lead to claim denial.
• Delayed processing: Extra verification will be needed if your details are not up to date.
• Local tie-ups: Some insurers have better service networks in certain cities. If your insurer has fewer garages or agents in the new city, your experience might be affected.

Conclusion

When relocating, your car insurance policy should be one of the first things you update. Inform your insurer, update your address, and if needed, re-register your vehicle.

As you focus on settling into your new home, let us help you take care of your car insurance needs. Simply fill out the form on this page to receive personalised guidance and ensure your coverage stays updated.

FAQs

• Can I continue using my current car insurance after moving to another city?

Yes, you can continue using it, but you must update your address and vehicle registration if required.

• Will my premium change after moving?

It might. Your new area may have higher or lower insurance rates depending on the location.

• Is re-registration of the vehicle always needed?

Only if you move to a new state and plan to stay there for more than 12 months.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. 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.

Comprehending how car insurance companies determine premiums may confuse the ordinary man. Auto insurance companies calculate your risk or the likelihood of what you will claim on your policy using various pricing criteria. Your rates for auto insurance will be better if the perceived risk is negligible. The following section aims to give readers an overview of how four-wheeler insurance rates are determined and what affects car insurance costs.

Insights Into Variables that Shape Your Car Insurance Premiums

The following are some critical factors that affect average car insurance costs:

• Vehicle type and model:

The car's date of manufacture and model are significant factors when determining insurance costs. The cost of maintaining luxury and high-end cars is higher, as they require costlier maintenance and new parts. Meanwhile, older and less powerful vehicles typically have lower insurance premiums, providing more affordable options for those seeking coverage. 

• Age and gender of the driver:

Age and gender are essential factors in determining the complex formula for insurance rates. Younger and less experienced drivers have higher rates because they are statistically more likely to be involved in accidents. 

• Location and city-specific rates:

Premium calculations become more complex with geographic location, particularly in busy cities with high accident rates. Prices in cities are highly influenced by regional variables such as theft probability, overall weather conditions, and traffic congestion levels. The geographic factor underscores the importance insurers accord to various risk environments when determining premiums, and policyholders must understand this.

• Claim history and driving record:

Driving history is one of the most important factors when determining the premium. Individuals with a perfect record and who have never been involved in claims or accidents are eligible for lower rates. Contrarily, a history of numerous allegations and accidents results in higher insurance prices. 

• Optional coverage and deductibles:

Selecting the appropriate coverage and deductibles becomes another important consideration when choosing an insurance plan. The price of complete or comprehensive coverage—including personal damage and third-party responsibility—is more than that of only third-party liability. 

• No-Claim Bonus (NCB):

The No-Claim Bonus (NCB) initiative is a preemptive strategy to encourage and compensate careful drivers. Policyholders may enjoy reduced rates if they choose not to file claims, promoting safe driving habits. The yearly percentage increase in the NCB constantly reminds policyholders to keep driving safely and without incidents.

NCB (No Claim Bonus) - Keep a Clean Record

What better incentive can you, as an owner, deserve for driving your car without meeting with an accident? NCB is awarded to the owner of the vehicle for 'No Claims' in the preceding policy years.

The value of the discount depends upon the insurance claims you have made in that particular year.

Avoid Policy Lapses

Renew your policy in a timely manner. Insurance companies usually levy a fine on insurance renewals made after the due date, and it might reflect on your premium amount. In case the delay is beyond the grace period, you may lose out on the NCB as well.

Policy lapse involves the risk of driving your car illegally on the road that can result in hefty fines. In case of an accident, you might have to pay for the damages out of your own pocket. These incidents can also lead to higher policy premiums once you reinstate your car insurance.

Pick Your Riders Diligently

Insurance companies offer a number of add-ons or riders that cover the minutest of the problems that you, as a car owner, could suffer. These range from arranging for duplicate keys, and fuel delivery to spare parts replacement and engine protector cover. Such add-ons, normally are not covered under the policy but can be bought at an additional price. Avoid selecting blindly; choose and pay only the add-ons that you really need.

Best of the Features, Best of the Deals

If your car has the best of security features like anti-theft tools, engine cut-off systems etc., you are in a great position to negotiate a competitive price for the premiums.

Voluntary Deductibles

Avoid claiming for minor damages like scratches, small dents, etc. as availing attractive discounts on the premium is a more prudent choice than opting for small claims.

Finally, your driving history is considered to be one of the top factors that any insurance company looks at; it can have a huge impact on your insurance premiums. Typically, insurance companies look for records of violations during the last five years. Hence, drive smart and pay less!

Drive Safely

Voluntary deductible is an amount that you, as a car owner, can pay in the event of a claim. While compulsory deductible is as per the policy terms, voluntary deductible can be fixed during policy renewals. The higher the deductible amount, the lesser would be the premium and vice versa. You can also take help of various Car Insurance Premium Calculators present online to calculate your premium instantly.

Many may not know this fact, but it has been observed that men pay comparatively higher insurance premiums than most women. This is not an instance of gender inequality but a clear indicator that women drive more responsibly than most men. Men are often found guilty of rash and drunken driving, while we hardly hear about women being involved in such cases.

Women Planning to Buy Car Insurance

This is one reason we often hear of cheap car insurance for women. Subsequent sections discuss the benefits women receive in car insurance and how all that is possible.

For every woman who is willing to buy car insurance and is seriously looking for an insurer, the following points will be helpful to keep in mind:

• Basics:

Knowing the basics is better before settling on a choice. Regarding the protection of your vehicle, you must be clear that third-party insurance is mandated by law for all vehicles. This insurance will cover any harm caused to an outsider/pedestrian because of your faulty driving. Third-party insurance also covers damage caused to their property by your vehicle.

• Understanding your requirements:

The key to getting car insurance for women is understanding your requirements. If you need to drive your vehicle daily and have a new vehicle, then opting for full-fledged vehicle insurance or comprehensive insurance would be better. Third-party insurance would be better if you have an older car and hardly drive around town.

• Research:

You can conduct online research about the car insurance policies various insurance companies offer. Doing so would help you find the correct and suitable policy for your needs.

• Picking up add-ons:

Add-ons have recently become fundamental. They are more minor insurance policies that enhance the effects of your primary insurance policy. It is similar to adding more facilities to your existing policy and developing it further. It is similar to adding more facilities to your existing policy and developing it further. 

• Why car insurance:

Car insurance should never be considered a burden or a liability. It's more of an investment that will come to your aid in times of financial duress. It will cover your losses adequately and ensure you remain stress-free all the time.

• Buying car insurance: Now, you are good to go after all your research and gaining knowledge about the basics of buying car insurance and its importance. You can purchase the car insurance that suits your needs and provides perfect protection.

Fundamental riders for every car owner

You may be the most reliable driver on earth, but that does not mean you don’t require a motor insurance. Various unpredictable factors such as calamities, road quality, behaviour of other drivers, crimes, etc. can affect the safety of your vehicle. In such cases, your car insurance may fall short. Hence, car insurance riders or add-ons are needed to extend coverage and protection for your car.

With so many riders, it is important to understand that not all of them are necessary, especially if it won’t be used. Why pay premium for cover you didn’t need in the first place?

The following types of add-on covers should be ideally bought by responsible car owners. It effectively protects you and your car, and minimizes the risk of liability.

Add-On Covers That Are Important

• Personal accident rider

If a personal accident cover is not already attached to your base plan, it is highly recommended that you purchase this add-on.

According to a World Road Statistics 2015 released by International Road Federation, Geneva, India has the second highest number of road accident fatalities per 1,00,000 population. Another report ‘Roads Accidents in India – 2015’ released in June by the Ministry discloses that, number of accidents recorded by car/taxis/vans/light and medium vehicles is 17.2%, coming in second after two wheelers.

Hence, such a rider is necessary to navigate the complex and unregulated roads of India. It offers coverage for accidental death, temporary partial disability, and permanent partial/total disability.

• Ambulance and medical expenses rider

This add-on covers the cost of medical care and ambulance charges in case you or your passengers or other involved party meet with an accident. It compensates you for these expenses up to a certain limit.

• Engine hydrostatic cover

This add-on is best suited for Indian car owners and is vital part of motor insurance. Indian monsoons can create havoc on car engines. Such hydrostatic cover offers coverage for damages to your engine due to leakage of oil, water stalling, etc. The insurer will pay the engine repair costs under this rider.

• Road assistance and towing rider

RSA rider is saviour in event of an accident or vehicle breakdown in middle of the road. Insurers offer this assistance 24x7 for fuel refuelling, flat tyre change, battery jumpstart, etc. All you need to do is call your insurer for the assistance to be dispatched.

• Zero depreciation cover

When you claim insurance on your car, you will get a depreciated value of the vehicle. Hence, the claim you receive will never be the full amount. With zero depreciation rider, you can claim the full amount excluding the depreciation, thus saving at least 30-40% of losses. However, this cover recommended only for new cars.

• Vehicle Replacement

Vehicle Replacement add-on is crucial if your car is damaged beyond repairs due to an accident or theft. In such cases, usually insurer will declare it as total loss and the claim you receive will be less than market value, which is insufficient. This rider offers coverage for an equivalent car replacement and protects you against such losses.

Rather than cancelling ‘junk portions’ of your insurance or buying fancy riders – that won’t be utilised – these add-ons will give you a healthy coverage that enhances the utility of your car insurance. They are fundamental and offer better coverage. Check your policy wordings before signing, to find the perfect companion for your car insurance.

The modifications made to your car have a direct effect on the insurance premium

You must have thought of equipping your car with those flashy headlights, robust alloy wheels and sporty spoilers. The thought of bigger turbochargers could have tempted you to improve your car’s performance and speed. A modification can be a great way to personalize your car and improve its performance. But, here are some things that need to be taken into account.

Tell Your Insurer About The Modifications

If you are contemplating pushing up your car’s oomph factor, there are few obligations to consider when it comes to your car insurance. From engine upgrades to fresh paint and stickers, always inform your insurer about the modifications made to the car. If you fail to declare any alterations to the car, it could result in rejection of your insurance claim.

How Modifications Affect Insurance Premiums?

Insurance companies provide a cover from risk and damages to your car. When you modify a car, it may result in increased or decreased chances of risk to the car. Hence, the insurance premium on your car may also rise or fall depending upon the modifications.

For example, if you install a turbocharger to your naturally aspirated engine, it may increase the speed. Which means higher chances of risk or accident and hence an increase in the insurance premium. Whereas, installing safety devices like parking sensors may decrease the cost of premium as it reduces the risk of collision while reversing the car.

What Are The Possible Modifications That Car Insurers Must Know?

• Engine modification: These modifications enhance power and speed, and hence increase the risk. Therefore, they can hike your car insurance premium.
• Wheel modification: Replacement of your car wheels may enhance the look and wheel upgrade may upturn the car’s value.
• Bodywork: Any modifications like bonnet bulges, bigger wings, extended spoilers, tinted windows or additional lights may increase the premium cost.
• Brakes and suspension: It is a critical safety component of the car, and are assessed by the insurance company before calculating premium.
• Car interior: Any changes to seat upholstery, steering wheels, pedals or sound systems may alter the premium depending on the quality.
• Paintwork: Specialized body paint or any stripes or designs on the car may change its appearance and hence may increase its value.

Before getting any modification done to your vehicle, make sure to inform your insurer as it will enable them to evaluate the premium cost and ensure your claim is not rejected in the event of an accident.