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Renewal of Car insurance is a mandatory process and is generally done annually. Insurance providers tend to send reminder letters, emails or messages to their clients holding insurance already – so they may have adequate time to renew the insurance before it lapses.

As a car Insurance holder – there are some important things to look at while renewing car insurance so that you can cover all the important points relating to your car insurance. These are:

  1. Review the amount and terms of Coverage & Insurer.
  2. IDV – Insured Declared Value of your car.
  3. Add on Features.
  4. Discounts on anti-theft device.
  5. No Claim Bonus
  6. Deductibles.
  7. Renew Before Expiry.


1. Review Your Requirements – Amount and Terms of Coverage & Insurer

Renewal of Policy is the time where you can think about the terms of your policy both amount and other terms of coverage. You have the freedom to try and work out the terms with your current insurer or change insurance companies in the process. Choose a well-reputed Insurer who are known for honouring the claims made in a hassle-free manner. Any insurer you choose should be certified by IRDAI (Insurance and Regulatory Development Authority of India). Important points are:

- Basic value of the car
- Additional riders opted
- Deductibles in policy
- Other benefits
- Time frame for reimbursement of claim amount


2. Know the Insured Declared Value (IDV) of your vehicle and pick the correct IDV.

Insured Declared Value or IDV is not to be confused with the vehicle’s resale value. 

IDV is the maximum amount you will receive from your insurance company in case of the total loss of your car which happens in cases of irreparable damage or car theft. IDV could be considered as the current market value of your car – and buyers of second hand cars have been known to check on this value while purchasing the car as well.  Higher IDV insures you for a greater sum but also makes the premium amount higher, whereas a lower IDV may get you a lower premium but will leave you under-insured in cases when the car has become worthless.


3. Add on Features

Insurers offer several Add on Features. The most convenient ones that one may opt for are:
Depreciation: A car insurance policy that offers zero depreciation is useful for expensive cars – which may lose a large part of their IDV year on year. 

Cashless Policy: Some top insurers have a list of affiliated garages. The trademark of this add on feature is that you would not need to pay out of pocket for getting the repairs done. This might be especially useful in times of emergencies.

Portability: Check if the policy can be made portable. It helps in cases when you are planning to sell your car and it allows the second-hand car buyer to avail the benefits of the declared IDV and available NCB on your car.


4. Possibilities of Discounts

There are certain things you can do to ensure the safety of your car –  which could lead to insurers offering a discount on the car Insurance policy. One such thing is the installation of anti-theft device certified by Automotive Research Association of India in your car.


5. Remember to claim the No Claim Bonus (NCB)

When a car insured has not made a claim an entire year – they receive no claim bonus as a deduction from their premium payable for the next period. This NCB can go up to 50% of the premium payable in case of recurring years with no claim – as it is an incremental benefit. Remember to claim this while renewing your policy. It is important to know the NCB remains – even if you switch your insurance company. 


6. Compulsory Deductibles (pros and cons)

Going for a smaller deductible may lower your premium. Look at this facet before deciding on the deductible to be agreed to. However, don’t agree to extremely high deductibles. Compare policies to know what is appropriate.


7. Renew Before Expiry

Always renew before the expiry of insurance. A lapsed Insurance is not only a punishable offence as per The Motor Vehicles Act, 1988, but you also lose your NCB if renewal is not done within 90 days of the end of the expiry period.

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Disclaimer :The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Insurance needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice for Travel/Health/Motor. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.

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