We all love our two- or four-wheelers. The feeling of the rush of adrenaline we get when we take our vehicle for a spin around town on various kinds of terrains is simply unparalleled. To ensure that we keep feeling like that for several years to come, we consider buying motor vehicle insurance, which needs to be renewed from time to time. The good news is that the insurance market is evolving with time, thanks to the general insurance companies offering a vast variety in the field of vehicle insurance covers. Hence, you must keep five very crucial things in mind ahead of going in for a motor insurance renewal. Read on to know more.
The Insured Declared Value
Every time you renew your vehicle insurance
policy, you must keep an eye out for a section known as the ‘Insured Declared Value’ or IDV. This is the most crucial part of a motor insurance policy, as it signifies the insurer’s maximum liability towards the insured’s vehicle.
The maximum IDV depends on factors such as the market price of the vehicle at the time you apply for the policy and its overall condition if the vehicle is old. Many insurers will try to lure you in with lower premium amounts at the time of your motor insurance renewal
, which is something that you must be wary of. Low insurance premiums mean a lower sum IDV. This means that when you make a claim as a motor insurance policyholder with low coverage, you still may bear a sizable portion of the expenses. *
Type of insurance
When it comes to vehicle insurance policies, two types of the same exist, namely third-party and comprehensive insurance. Third-party insurance covers are cheaper and mandated by the government. But the downside of the same is that it only will come in handy while bearing the expenses incurred by the third party whose property or vehicle you have damaged with your vehicle.
Comprehensive insurance covers the damage incurred by you, as well as the third party, at the time of a mishap. We recommend you should always opt for a comprehensive motor insurance policy. It may be priced a little higher than the standard third-party insurance cover, but a comprehensive vehicle insurance cover has a wider scope, and you can even customise it by padding add-on riders that suit your case best. *
There is a good chance that during the insurance period, you will find an insurer that will give you similar coverage at a lower premium and can provide service of better quality. In such a scenario, you may want to switch your insurer. Hence, before going ahead with renewing your insurance coverage, make sure that your insurer gives you that option. Your wallet will thank you for being prudent like that in the future. *
If you do not make a claim during your policy tenure, insurers grant you what is known as a No Claim Bonus (NCB). This NCB is passed on to you in the form of a concession in your renewal premium. You must remember that the NCB can be as high as 50% of the Own Damage (OD) cover, which is one of the two parts of a comprehensive vehicle insurance plan, with the other part being a third-party cover.
For instance, if you are paying ₹2000 per year towards your vehicle insurance policy and your OD cover makes up for 80% of it, the maximum NCB you will be eligible for is ₹800. *
You can customise your vehicle insurance as per your needs by padding it with appropriate add-on riders. Some of the add-on riders you can attach to your vehicle insurance policy are an engine protection cover, theft insurance cover, natural calamity cover, and zero-depreciation cover. You must keep in mind that the set of add-ons offered can differ from insurer to insurer. Hence, you must renew your insurance policy with the insurance company that will provide the add-on riders that suit your case best. *
* Standard T&C Apply
There are many things that you have to be mindful of before going ahead with your motor insurance renewal. If you are planning to port out to a better vehicle insurance provider or planning to get a new one, why not look at what Bajaj Allianz has on offer? You can also use our vehicle insurance calculator
and find out which vehicle insurance cover can fit your needs and pockets best.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.