Buying a car can already be a considerable investment for new owners. For example, while car companies like to showcase the factory price of the vehicle in advertisements, the customer has to bear instead an on-road price, which includes the ex-showroom price (consisting of GST, the ex-factory cost, and the profit margin of the vehicle dealer) plus registration fees, insurance, road tax, and other charges.
These charges are then compounded with the charges required to accessorise your car, pay off the cumulative loan interest, yearly maintenance and service changes, repainting and touch-ups, tyre changes, battery changes, and potentially even more expenses.
Consider this example from teamBHP.com illustrating the total cost of ownership:
Total expected usage tenure= eight years
- On-road Cost of car: ₹8,00,000
- Cumulative loan interest: ₹1,50,000
- Average service charge per year: ₹6,000
- Repainting & touch-up: ₹15,000
- Tire change: ₹12,000
- Battery change: ₹6,000
Total cost of ownership = 8,00,000+1,50,000+(6000*8)+15000+12000+6000= ₹10,31,000
Now, you can also add monthly fuel costs depending on the average fuel consumption of ₹2,000-5,000, insurance costs depending on the plan from ₹20,000 to ₹50,000 per year and monthly cleaning charges of around ₹500 per month per car.
These expenses can add up and make it an expensive affair for car owners if they ever face an accident or have their car damaged enough to require an insurance claim. Not only is insurance mandatory for all vehicles, but a comprehensive policy from a reliable insurer is recommended, at least for expensive cars. In addition to this, as cars are an asset with depreciating value, car owners can also ensure that the value of their car doesn’t deteriorate with a zero-depreciation cover.
Or if they want coverage for key replacement, compensation for transportation fees to reach their destination through a taxi, etc.
Keep reading to learn all you need to know about renewing your car insurance in a few simple steps.
How do you renew your car insurance online in 5 easy steps?
Renewing your car insurance online in 2024 is straightforward, as most insurers offer a simple, user-friendly experience. Follow these steps for a hassle-free renewal:
1. Review your existing policy
Before proceeding with the renewal, reviewing your existing policy is essential. This includes:
- Coverage Details: Ensure the current coverage meets your needs, and consider adding or removing any features, such as third-party coverage, zero-depreciation, or roadside assistance.
- Claim History: Check if you’ve accumulated any No Claim Bonus (NCB), which can significantly reduce your premium. You are eligible for a discount if you haven’t made any claims during the policy period.
After reviewing your policy, decide whether to continue with the same insurer or explore better options.
2. Visit Your Insurer’s Website or Use an Aggregator
Once you decide to renew your car insurance online, head to your insurance provider’s official website. Most insurance companies in India provide an online renewal option directly on their websites. Consider checking out policies from leading insurers like Bajaj Allianz for reliable and beneficial insurance coverage, especially with their thousands of network garages and excellent comprehensive policies.
Alternatively, you can use a car insurance aggregator website. Aggregators allow you to compare direct insurance renewal offers from multiple companies, helping you choose the most suitable plan. Enter your car details, previous policy information, and desired coverage to get comparative quotes.
3. Enter Policy and Vehicle Details
When renewing your car insurance online, you will need to provide some basic information:
- Policy Number: You will be asked to enter your previous policy number to retrieve the existing details.
- Vehicle Information: This includes your car’s registration number, make and model, engine capacity, and the year of manufacture.
- Personal Details: Ensure that your details, such as name, address, and contact information, are correct and up-to-date.
If you are switching insurance providers, you may also be required to enter additional details, such as your claim history.
4. Customise Your Plan and Choose Add-ons
Once your vehicle and policy details are verified, you can review or modify the coverage based on your current needs. Common modifications include:
- Third-Party vs Comprehensive Insurance: Ensure you’re selecting the correct type of insurance. A third-party policy covers only damages caused to others, while comprehensive insurance covers third-party liabilities and damages to your car.
- Add-on Covers: Many insurance companies offer optional add-ons to enhance your coverage, such as:
- Zero Depreciation: This ensures you get the functionality of parts replaced without factoring in depreciation.
- Engine Protection Cover: Ideal for those living in areas prone to floods or waterlogging.
- Roadside Assistance: Provides help in case of vehicle breakdowns or emergencies.
- Personal Accident Cover: Offers financial protection in case of accidental injuries or death.
Customise your policy based on your requirements and budget, ensuring optimal protection for your car.
5. Make the Payment and Get Confirmation
After selecting the appropriate coverage, proceed to make the payment. Most insurers offer multiple payment options for your convenience, such as:
- Credit/Debit Cards
- Net Banking
- UPI
- Mobile Wallets
Once the payment is successful, you will receive an instant confirmation via email or SMS. Your renewed car insurance policy will be sent to you in a soft copy format, which you can download and store digitally.
Bonus Tip: Download and Save Your Policy
Always download a copy of your car insurance renewal policy and store it safely. A readily available digital copy ensures you can access your insurance details at any time, especially during emergencies or traffic checks.