Five things to keep in mind while renewing vehicle insurance; expert Jitendra Solanki shows the way forward

Vehicle insurance is one of the most important responsibilities of a car or bike owners. However, while buying a car or a bike, the owner gets the best suitable insurance for one's vehicle as the insurance is given by the automaker itself. But, at the time of insurance policy renewal, there are some important tips that one must keep in mind.

Speaking on the insurance policy renewal tips SEBI registered tax and investment expert Jitendra Solanki said, "One should never allow one's vehicle insurance to lapse. In fact, one should try renewing one's vehicle insurance before expiry and avail the incentives given by the insurer." Solanki said that in the case of vehicle insurance policy lapse, one will have to lose the available incentives even though the vehicle owner renews its policy post-lapse.

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To renew any of one's existing vehicle insurance policy Solanki listed out the insights to go about the process.

1) Never allow your renewal date to get lapsed. Timely renewals ensure that you get your no claim bonus (NCB) which brings down the premium that you would pay otherwise. Though you get a 90-day window to renew it from the date of expiry. Insurance companies give a policyholder an incentive in the form of lower premium up to 50% of the amount if the owner has not applied for a claim during the term of the insurance.
 
2) As a thumb rule never renew your insurance policies without analysing what other service providers are offering you. Go to the websites of any preferred insurance aggregator/s to check and compare what different service providers are offering. Shortlist the plans you find best and then look for an ideal plan that offers you adequate insurance at a competitive price.

3) Small premium may not always be the best option as the Insured Declared Value or IDV for your vehicle may come down. IDV is the maximum sum assured of your motor insurance policy. Calculation of IDV is a complex task and you may not be able to know the right price being offered to you by the service providers. On renewals, the IDVs usually come down significantly. You are the best judge of the condition of your vehicle. While there is no clear cut way, it is good if you make some efforts to determine what the market price of your vehicle is. This could give you some idea of what your IDV should be.

4) Opting for a higher limit of voluntary deductible in a policy is a good way to reduce premium. If you have not done that previously, you should do it in the renewal policy. If a policyholder files a claim, he has to pay the limit of the voluntary deductible and the insurer will pay for the remaining amount. The voluntary deductible offers you a discount on your premium.
 
5) While you take a policy, it is advisable to install anti-theft devices in vehicles. This can reduce premiums of your policy. You can also become a member of the Automobiles Association of India or Western India Automobile Association to get discounts on insurance premium.