Renewing a car insurance policy seems like a no-brainer. You just need to keep the expiry date in mind and make sure you get the payment done before that, right? Well, sure that’s one way to go about things but it’s surely not the ideal route to take.
For the most efficient renewal experience, there are a number of things that need to be looked at and this article will provide you a 5-point checklist of the more important ones, to ensure you get the most of your renewal process.
1. Are you receiving no claim bonuses?
If you’ve gone through the policy tenure without making a claim against your insurance, you are entitled to a ‘no claim bonus’. This is a discount on your premium amount that keeps on increasing for every year you go on without making a claim. It starts at 10% and goes all the way up to 50%. So if you have a claimless history, inquire if you’re receiving the NCB or not.
2. Reassess your cover.
You could go on just renewing the same plan, or you could add more protection to your plan, especially if you think you need it. You could protect your NCBs, or opt for roadside assistance or take the zero depreciation add-on.
3. Long-term car insurance is an option.
If you’ve been renewing a single year plan and you find the process cumbersome, you could simply upgrade to a long-term plan. Not only will this save you a good amount of money but it will also cut out that yearly hassle of renewing your plan.
If you want to lower the impact of car insurance premium on your financial state, you can reduce the deductible to bring down the premiums. This will mean you end up paying more from your pocket in case of a claim but let’s face it – the occurrence of a claim is rare. You’d rather save on the many years you go without making a claim rather than paying more for lower deductible.
5. Switching insurers is also an option.
Remember that it’s not compulsory for you to stick to a certain lender throughout. You can move to a new lender too. In fact, doing so will unlock numerous benefits. These days, numerous insurers have online plans that are extremely cost effective and sometimes up to 40% more affordable than offline plans. Some insurers also have better coverage at lower rates, but if you never look, you’ll never know. So if your renewal date is approaching, it makes sense to check your options before going ahead and renewing with your existing insurer.
Keep this 5-point checklist in mind when renewing a car insurance policy and you should unlock an efficient and financial viable renewal process. If you want to know more or are confused about the points mentioned above, feel free to consult your insurer. Good luck and all the best, drive safe!