Motor insurance is mandatory and every person owning a car has to have it. As a result, a lot of insurance companies have a lot of products on offer and the customers are often left confused as to which policy to buy. The same dilemma is also present at the time of policy renewal. Many a times the policyholder wonders whether to stick to the same policy from the same insurer or to opt for a new policy. There are a lot of factors that you, as a policyholder, must consider before you renew your motor insurance policy. If you make the right choices, not only will you have a comprehensive insurance coverage, you will also end up saving a lot of money.
Tips to save money while renewing motor insurance
1. Compare the various policies – A big mistake that most policyholders commit is that they think they have the best possible policy and so renew it. While renewing your policy, go online and compare the various policies and see what features you can add. Comparing policies can prove to be very useful and help you save money.
2. Check what’s on offer – Before you renew your insurance policy, make sure you review the features of the policy. See what you need and what you don’t need. For example, if there is a special clause for which you are being charged extra, see whether you really require it. Say you have a 10 lac personal accident cover. If you already have a personal accident insurance plan in place, you can leave this clause out and pay less for the policy.
3. Renew well in advance – Do not wait for your existing policy to expire before you decide to renew. It is always advisable to renew it at least 45 days in advance. This way, if a price hike happens in that period, your price is locked in and you don’t have to pay the extra (hiked) amount.
4. No claims bonus – No claims bonus is a kind of bonus that is paid to the policyholder if he has not made any claims in the preceding year. So check and see if you can avail of this benefit. If yes, then the discount will be deducted from your premium and you have to pay less for the current year.
5. Cross check the details – Remember that a lot of incorrect data is floating everywhere. As a result, don’t forget to cross check all the information you find. If you are renewing your policy online, then compare the policies on more than one website and also check on the website of the insurance company. If you are doing it offline, hire a good and reliable broker for the job.
If you follow these simple tips, you will surely end up saving a lot of money when renewing your motor insurance policy. Renewing your motor insurance policy is a simple and quick process, but you should spend a little bit of time weighing the available options since that always helps you make a profit.
Written By: Deepak Yohannan
The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal
For more articles by Deepak Yohannan, please visit MyInsuranceClub.com
You may contact him directly on Twitter: @dyohannan