To safeguard your vehicle against any kind of unexpected damages, a car insurance policy is recommended. Not only is a car insurance plan a legal mandate but also it offers financial cushioning for tackling the costs of accidental repairs your vehicle sustains.
Every year or two-year, car owners are required to renew the motor insurance policy. However, renewing a car insurance plan is as tedious as buying a new plan, since numerous products are available in the market.
Following are a few tips that will help you save money during the renewal of policy while availing the best protection.
1.Compare the different plans
A major mistake that several car owners often commit is that they renew the existing car insurance policy without looking for other products. When it comes to renewing a policy, it is recommended to go online and compare the different policies provided by various insurers. Comparing the different plans will help you save on premium as well as avail better protection for your vehicle.
2.Look For Offers
Before you decide to renew the policy, make sure you look for different offers provided by the insurer. Several insurers are known to provide offers to existing car insurance policyholders who wish to see move from their current insurer to another. Look out for such offers as this will help you save on the premium paid.
3.Assess the IDV
IDV or Indemnity Value is the maximum amount of money an insurer will pay for your car after filing a claim. IDV varies from insurer to insurer, thus it is recommended to get a quote that includes vehicle IDV before shortlisting the plan.
4.Look for No-Claim Bonus
If you have not filed a claim in the current year for your car insurance plan, then the insurer will provide with No-Claim Bonus, which is a discount on the amount of premium you pay while renewing the policy. No-Claim Bonus is transferable and can range from 5% to 50%, depending on the model of car, locality, and insurer.
5.Install Safety Features
By installing safety devices, the risk for car theft decreases significantly. Car insurers understand this fact and accordingly offer discounts on the premium to be paid while renewing a car insurance plan.