Avoid these 6 major mistakes during car insurance renewal

For many car owners, car insurance renewal is like an annual chore. Some people simply stay with their current insurance company, while others search for the cheapest premium. According to an NDTV report, both these approaches risk overlooking critical details that can make a significant difference when filing a claim.

A quick review of the policy before insurance renewal can reduce unnecessary expenses and ensure adequate protection for the vehicle. Pooja Yadav, Chief Product Officer at Zhuno General Insurance, has provided information regarding six common mistakes motorists should avoid while renewing insurance.

Firstly, many people choose a policy simply because a low premium seems attractive, but this does not mean it is more valuable. Car owners should check what is covered in the policy, what exclusions are kept, and how much amount they will have to pay themselves during a claim. The primary objective should be to find a policy that maintains a balance between affordable cost and adequate protection.

Secondly, standard insurance does not cover all repair expenses. Depending on the policy, add-ons such as Zero Depreciation, Roadside Assistance, and Engine Protection can provide additional coverage. For example, engine protection may include specific damage to the engine and gearbox as well as damage caused by waterlogging. Electric Vehicle (EV) owners should specifically check whether their policy has appropriate protection for battery systems and charging-related risks. Pooja Yadav told NDTV, "Car owners should evaluate add-ons based on their car, driving conditions, and usage, rather than choosing them blindly."

The third mistake is ignoring the No Claim Bonus (NCB). NCB is a reward given to policyholders for not making any claims during the policy period, which can significantly reduce the own-damage premium. One should check whether the applicable NCB is included in the renewal quote. Those who are changing insurance companies should ensure that their eligible bonus has been correctly transferred.

The fourth mistake is waiting until the last date for renewal. Renewing at the last minute leaves very little time to compare policies, review coverage, or correct errors. Renewing before the insurance expires gives motorists the opportunity to evaluate their options without rushing.

Thus, instead of merely choosing the cheapest option, conducting an in-depth check of the coverage and selecting the right add-ons can prevent financial loss in the future. By keeping these points in mind during the insurance renewal process, vehicle owners can make their cars more secure.