Top Mistakes to Avoid When Renewing Your Car Insurance

Keeping a car insured is essential for financial protection and legal compliance. However, many people make avoidable mistakes when they renew car insurance, leading to inadequate coverage, unnecessary expenses, or even policy lapses. 

Some rush through the renewal process, while others overlook important details that could save money or provide better protection. 

Check out this detailed breakdown of the most common mistakes people make when renewing their 4 wheeler insurance and how to avoid them.

Mistakes to Avoid When Renewing Your Car Insurance

Check out this detailed breakdown of the most common mistakes people make when renewing their 4 wheeler insurance and how to avoid them.

1. Delaying the Renewal Process

Many vehicle owners forget their renewal date and end up with a lapsed policy.

Why It’s a Mistake?

If a policy expires, the car remains uninsured. This can lead to legal penalties and financial risks in case of an accident. Some insurers may even require a fresh vehicle inspection before reissuing coverage.

How to Avoid It?

Setting calendar reminders or opting for auto-renewal ensures that the policy remains active. Checking renewal dates in advance prevents last-minute issues and allows time for comparisons if needed.

2. Renewing Without Reviewing Policy Details

Renewing a policy without checking the terms can lead to unnecessary expenses or inadequate coverage.

Why It’s a Mistake?

Insurance needs to change over time. A policy that was suitable last year may not be the best fit today. Failing to review policy details could mean paying for coverage that is no longer needed or missing essential add-ons.

How to Avoid It?

Before renewing, review the policy details including coverage limits and exclusions. It helps to make sure that the plan aligns with your current needs.

3. Ignoring the Insured Declared Value (IDV)

IDV represents the current market value of the vehicle and directly impacts the insurance premium and claim settlement.

Why It’s a Mistake?

If the IDV is set too low, the payout during a claim will also be low. If it's too high, the premium becomes unnecessarily expensive.

How to Avoid It?

Setting the correct IDV ensures fair compensation in case of damage or theft. Comparing the IDV with the current market value of the vehicle helps in making the right choice.

4. Missing Out on No Claim Bonus (NCB)

The NCB is a benefit given for claim-free years, reducing the renewal premium.

Why It’s a Mistake?

Many policyholders forget to apply their NCB or lose it when switching insurers. This results in paying a higher premium.

How to Avoid It?

Checking the NCB eligibility before renewal is crucial. When changing insurers, ensuring the NCB is transferred prevents unnecessary costs.

5. Overlooking Add-On Covers

Standard policies may not provide full protection. Add-ons enhance coverage for specific risks.

Why It’s a Mistake?

Not considering add-ons can leave policyholders with out-of-pocket expenses. For example, without a zero depreciation cover, they might have to bear part of the repair costs.

How to Avoid It?

Understanding available add-ons like roadside assistance or engine protection ensures better financial security in unexpected situations.

6. Not Comparing Policies Before Renewal

Sticking to the same insurer without exploring other options might not always be the best financial decision.

Why It’s a Mistake?

Different insurers offer different benefits. Without comparison, policyholders may miss out on better coverage or lower premiums.

How to Avoid It?

Comparing different policies before renewal ensures the best coverage at a reasonable cost. Checking policy features, claim settlement process, checking the claim settlement ratio and customer reviews helps in making an informed decision.

7. Ignoring Available Savings

Most insurers offer savings on 4 wheeler insurance for factors like safe driving, installing anti-theft devices, or buying policies online.

Why It’s a Mistake?

Not inquiring about savings options results in higher renewal premiums.

How to Avoid It?

Checking with the insurer about available savings and providing proof of eligibility ensures the best possible premium rate.

8. Failing to Update Personal and Vehicle Information

Renewing insurance without updating personal or vehicle details can cause complications during a claim.

Why It’s a Mistake?

If the insurer has outdated details, claim approvals may be delayed or rejected.

How to Avoid It?

Updating the insurer about changes such as address, contact details, or modifications in the vehicle helps avoid issues later.

9. Not Reading the Policy’s Terms and Conditions

Many people renew their 4 wheeler insurance without checking the fine print.

Why It’s a Mistake?

Important exclusions or conditions might be overlooked, leading to unexpected claim denials.

How to Avoid It?

Reading the policy document thoroughly before car insurance renew ensures that all terms and conditions are understood. Clarifying any doubts with the insurer prevents confusion during claims.

10. Choosing Monthly Premium Payments Without Checking Extra Costs

Paying premiums in installments might seem convenient, but it can increase the overall cost.

Why It’s a Mistake?

Some insurers charge additional fees for monthly payments, making the total premium amount higher than a one-time payment.

How to Avoid It?

If financially feasible, paying the annual premium in one go helps avoid extra costs. Checking the total payable amount before choosing a payment method ensures transparency.

Conclusion

Avoiding these common mistakes can help policyholders renew their 4 wheeler insurance smoothly while ensuring the best protection for their vehicle. Taking a few extra minutes to review policy details, check coverage, and compare options can prevent unnecessary expenses and provide peace of mind. Making informed decisions while renewing insurance ensures financial security in case of unexpected events.

*Standard T&C Apply

*Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

*Claims are subject to terms and conditions set forth under the motor insurance policy.