Can the insurance premium on my vehicle be reduced?
December 22, 2008
A large part of your insurance premium cost is based on the IDV of your vehicle. If you maintain a claims-free record, you accumulate a bonus, which translates into discounts on policy renewal. Insurers reward policyholders for not making claims by providing a discount on the premium.
Moreover, you could avail of discounts if you are a member of a recognised automobile association. A discount of up to Rs 500 could be availed if you have installed an anti-theft device in your car that is approved by the Automotive Research Association of India.



What if I forget to renew my auto insurance on time?
A car insurance policy has to be renewed before the expiry of the ongoing term of insurance. Delay in renewing a policy and thereby driving a vehicle without valid motor insurance is illegal and there are substantial penalties.



Here are some scenarios where you will lose out:





In case the uninsured vehicle has an accident, the insurance company is not liable and you would have to bear the liabilities alone, if any
If the policy is not renewed within 90 days of the expiry date of the previous policy, the no claim bonus cannot be claimed
If the policy expires and is not renewed on time, the insurance company will insist on a physical inspection of the vehicle before granting renewal