Hello friends, today we are going to talk about car insurance renewal. Nowadays everyone has their own car and getting it insured is a legal requirement. But when it comes to renewing the car insurance, many people get confused. So to remove this confusion, I am going to tell you step-by-step what things should be kept in mind in car insurance renewal and how you can save money.
What is car insurance?
First of all, it is important to understand what car insurance is. Car insurance is a policy that provides financial protection to you and others if your car is involved in an accident or is damaged. Car insurance is mandatory in India, especially third-party insurance.
Types of Car Insurance
There are mainly two types of car insurance:
Third-Party Insurance
Third-Party Insurance only covers damages to the other person. It is compulsory in India and without it you cannot drive your car on the road.
Comprehensive Insurance
This insurance covers third-party damages as well as damages to your car. It is a little expensive but is more beneficial.
Also Check: How to Choose the Right Car Insurance Policy? Complete Guide (2025)
Important Things in Car Insurance Renewal
When you go to renew your car insurance, you should keep some important things in mind:
1. Premium Comparison
First of all, you should compare the premiums of different insurance companies. For this, you can use platforms like PolicyBazaar where you get plans of all companies at one place.
2. IDV (Insured Declared Value)
IDV means Insured Declared Value. This is the current market value of your car which decreases with depreciation. If you keep the IDV low, the premium is low but the claim amount is also low.
3. Add-On Covers
At the time of insurance renewal, you also get the option of add-on covers like zero depreciation cover, roadside assistance and engine protection. These covers increase the premium a little but are very useful during emergencies.
4. No Claim Bonus (NCB)
If you have not taken any claim last year, you get No Claim Bonus (NCB), due to which your premium is reduced. NCB starts from 20% and can go up to 50%.
How to save money in car insurance renewal?
This is the most important point that everybody wants to know. I am giving you some simple tips by which you can save money at the time of your insurance renewal:
- Compare premium: Never renew the policy with the first company. Always compare the premiums of different companies.
- Choose IDV properly: Keep the IDV neither too low nor too high. Set the IDV according to the actual market value of your car.
- Buy add-on covers only as per your need: It is not necessary to buy all the add-on covers. Buy only those covers which you feel you really need.
- Take advantage of NCB: If you have not taken any claim last year, then take full advantage of your NCB and reduce the premium.
- Take online policy: By taking online policy, you do not have to pay the fees of offline agents and you also get discounts.
Must Check Out: How to Save Money on Car Insurance Premiums: Top Tips to Cut Costs! (2025)
Conclusion
So friends, car insurance renewal is not rocket science. You just have to understand a little and compare your options well. If you keep all these tips in mind, then you can renew your car insurance easily and cheaply. Always remember, a car is a liability, so the more money you can save on its maintenance and insurance, the better it is.
I hope you liked this guide and got all the information about car insurance renewal. If you found this article helpful, don’t forget to share it with your friends!
