Under the Motor Vehicles Act, driving a car without insurance is illegal. Auto insurance provides consumers with a financial cushion in the event of an accident, theft, or vehicle damage caused by a natural disaster or any other cause.
Over the past two years, people have limited their travel due to the Covid lockdown and travel restrictions later on. As a result, many consumers have not renewed their auto insurance policies.
“As life has returned to normal in the past few months and people are fleeing their homes, it is imperative for vehicle owners (both two-wheelers and four-wheelers) to keep an eye on their auto insurance policies. It is critical to make sure their auto insurance policies are up to date,” says Indranil Chatterjee, co-founder of RenewBuy.
In many cases, people have been observed not renewing their auto insurance policies during the two-year Covid restrictions.
First of all, Chatterjee points out, “consumers should check to see if their auto insurance policy has been renewed; if not, you should check his grace period and renew the policy.”
He further adds: “In the event that a consumer is thinking about buying a new auto insurance policy, it is more beneficial to choose comprehensive insurance coverage.” Not only does it cover third party liability and offers cover for your own damages, but it also provides financial assistance for damages resulting from a collision. It also covers losses due to theft, natural disasters, repairs and replacements, and even the loss of a car. While this coverage requires a higher premium, note that the benefits are numerous.
Industry experts say people should also be aware of the no-claims bonus. There are chances that many insurers did not make a claim last year, mainly due to the low utility of the vehicle. In this case, as an insurer, you will be entitled to a certain discount at the time of renewal of the policy.
For example, you can get a 20% discount after one year without claims, 25% after the second year in a row, 35% after the third, 45% after the fourth, and 50% after the fifth year in a row.
Chatterjee explains: “The insured should be aware that there is an NCB reservation provision whereby the insured can transfer their NCB to their new vehicle and can benefit from lower premiums. It is also recommended to purchase insurance with an adequate IDV (Declared Value Insured) so that the consumer can obtain adequate coverage in the event of damage to the vehicle.”
Similarly, please note that you must choose add-on skins wisely according to your location and use of the specific add-on. For example, according to experts, only choose coverages like Geo Extension if you are taking your vehicle outside of Indian geography.
Chatterjee explains: “Sometimes it can be difficult to understand all the terms of a policy and therefore take the help of digital insurance consultants, especially from InsurTech distribution companies. This can help consumers buy insurance impartially and then guide them on how to properly take advantage of insurance claims as part of their insurance services.”