What is the concept of a car insurance policy?
You may have heard people talking about purchasing a car insurance policy, or may have bought one for yourself. Thos who do not know the concept of car insurance find it a bit difficult to digest. For others, it is like an investment. Well, we cannot call it an investment as there are no returns like those in an FD or mutual funds. On the other hand, it should be a part of your financial planning, as it prevents monetary loss when you are involved in a car accident. It is basically on the format of risk sharing – pay premium to an insurance agency, which will pay for the car wear & tear according to the coverage of the policy purchased.
Renewal of car insurance
Car insurance comes with an expiry date. Before renewing the policy, your car must be surveyed once again for damages. After a satisfactory test, you may renew your insurance. It is advisable to not drive the car until the insurance is renewed.
Before getting the policy renewed, you must have your earlier policy documents ready. This is required so that the insurance company can understand your past claims and assign a car insurance NCB (No claim bonus) towards the renewed policy.
Advantage of online car insurance renewal
Online car insurance renewal is an admirable feature which helps in saving time and avoiding burdensome paperwork. All you need to do is log on to the website of your preferred company, fill in the necessary details, upload the required documents and get it renewed! Ensure that all the details you fill online are authentic. After the submission of the renewal form online, you will receive a quote for car insurance renewal. There are various payment options via debit/credit card and other electronic payment options, differing from company to company.
How can you lower the renewal costs?
Did we catch your attention here? Let us look at some tips!
If you choose to renew your insurance through the same insurer without comparing the quotes from other companies, you may lose out on the chances of bringing down the insurance renewal expense. With the passing years, there has been a spurt in the number of comparison portals online where the customer can compare various costs versus benefits on one single click. By doing this, you can get a good deal at a lower cost.
- Do not select unnecessary features
While getting your car insurance renewal, the companies trap you by offering a web of features that come at additional costs. Do not select features which do not seem relevant to your needs. Thus you can save a good amount of money.
- Do not forget the Car Insurance No Claim Bonus
If you hold a valid insurance policy, you are eligible to qualify for a discount on the upcoming premiums during the renewal, provided you have not made any claims during the policy tenure. This is what a No Claim Bonus is, as the name justifies.