Every car owner is required to hold active car insurance coverage as per Indian Motor Vehicles Act. The frequency of road accidents has increased along with the volume of vehicles on the road. When you get into an accident, both your car and the other person's car are damaged. The cost of repairing your car and covering the third party's losses will be considerable, all thanks to car insurance. Therefore, having a suitable car insurance policy with sufficient coverage is crucial.
It is compulsory in India to have at least third-party insurance, which only comes with third-party liabilities. However, you can go for a comprehensive car insurance policy that not only protects you against third-party liabilities but also extends its coverage for you and your car against a wide range of potential losses and damages. Just like Cholamandalam MS comprehensive policy. It not only comes with complete protection but also provides a variety of customizations and add-ons for comprehensive auto insurance, like depreciative waiver, return-to invoice cover, etc., that enable you to tailor your insurance package to meet your needs.
Keep reading to learn the common mistakes to avoid when renewing your car insurance with Cholamandalam MS General Insurance.
Top Mistakes to Avoid When Renewing Your Car Insurance
Your car insurance has a specific term during which it is valid, just like any other insurance policy. The benefits of the car insurance policy end when the term finishes. Regularly renewing your insurance will enable you to keep your coverage and use the services.
Even though Cholamandalam MS General Insurance makes renewing your car insurance relatively straightforward, mistakes are common. You should avoid the following blunders when renewing your Cholamandalam MS car insurance:
Not Checking the No-Claim Bonus (NCB) Component
Using the NCB properly is a great way to lower the premium you have to pay. This is an extra discount given to the policyholder at the time of renewal. It is given to people who haven't made any claims while the policy has been in effect. This is a reward from the insurance company to the policyholder for not filing a claim during the policy.
Failure to Select the Appropriate Policy
Just as you must select the best phone for you, you must also select the best type of insurance policy.
If you want complete protection for you and your car, you may choose a comprehensive or own damage coverage that will cover your car and the people in it! Plus, it allows you to include add-ons to your base policy to make it further comprehensive. This is the reason this policy is a bit expensive to afford as compared to a third-party car insurance policy.
Third-party car insurance covers third-party people and property but not your car. This policy is affordable to many due to its limited coverage. But maybe sufficient if you don't drive frequently or are confident in your ability to drive safely. It would be less expensive and still offers the necessary legal protection.
Once you understand each coverage, you can determine which policy is best for you.
Analyze Your Policy Premium
One of the most important factors considered while renewing car insurance is the cost of the premium. You may want to pick an all-inclusive coverage option that satisfies your needs. However, ensure that the plan is financially feasible; otherwise, none of the benefits will be realized.
Not Disclosing the Presence of Anti-Theft Devices to Your Insurer
A car insurance policy protects you from things you can't control, but the insurance company also likes it when you take care of your car. Installing an anti-theft device is one factor that gives the insurance company a reason to think that the car is less likely to be stolen after the device is put in place. This, in turn, makes claims less likely, and the fewer claims there are, the better it is for the company and you as it results in lower premiums.
Read more - The Impact of Installing Anti-theft Device on Car Insurance Premium
Choosing the Incorrect Add-ons
Add-on covers are an additional level of protection for your vehicle that you may select when you purchase your own damage or comprehensive car insurance.
While these add-ons may increase your price slightly, they also turn your insurance into something tailored specifically to you.
If your insurance policy is up for renewal, now is the time to think about adding or deleting any of these coverages, as you can have as many or as few as you wish. Because add-ons might raise your premium, you must select only those that are appropriate for you and your vehicle.
Some good alternatives car insurance add-ons are:
- No Claim Bonus Protection Cover - No claim bonus protection in car insurance protects your NCB even if you have to make a claim.
- Zero-Dep Cover - If you have zero depreciation car insurance add-on coverage, your insurance provider will not consider the depreciation of your car and its parts while processing a claim for repair or reimbursement.
- Roadside Assistance Coverage - Roadside assistance cover in car insurance protects you if you become stranded on the road due to a breakdown or flat tires.
- Passenger Coverage - Passenger car insurance coverage provides financial protection for anyone in the car with you in the event of an accident.
Conclusion
You must regularly renew your coverage to keep receiving Cholamandalam MS General Insurance benefits. Your claim will be rejected if your car insurance has expired. Make sure to regularly renew your car insurance coverage if you want to remain protected.
Nowadays, renewing your car insurance online is a simple process. Just remember to renew your policy long before it expires to avoid gaps in coverage, which can have disastrous implications. Follow the terms and conditions of the policy when filing a claim for your car insurance to prevent having your claim rejected. And as long as you avoid making these blunders while renewing your Cholamandalam MS car insurance, you should be well on your way to driving stress-free.
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