Should You Consider Upgrading Your Car Insurance Policy During Renewal?

The first thing to do after purchasing a car must be getting it insured. In India, it is mandatory for every vehicle plying on Indian roads to get their car insured, according to the Motor Vehicles Act, 1988. Most people opt for the basic thirdparty car insurance policy, as it does not cost much and offers protection against any legal liabilities caused as a result of an accident that damaged or injured the third party. Whereas, a comprehensive policy is an extensive one and offers protection for own damage along with third-party liability. Do not worry if you have the basic policy and feel like you are underinsured, as you can always upgrade to a comprehensive one during renewal.

The process of upgrading the policy is not that difficult. You will need to provide your insurer with the additional details regarding the upgraded features that you want on the renewal form. By doing this, you will get the estimated premium amount of the upgraded policy. Today, you can purchase or renew car insurance online, and so this entire process can also be done on the web, sitting at home. You need not get in contact with any agent whatsoever for the process to take place. You will only have to visit your preferred insurance company’s website and renew your policy by following the necessary steps:

An individual would want to upgrade their car insurance policy, for the following reasons:

1. You bought a new car, and want to transfer the car insurance policy from your old vehicle to the new one. It is possible to do this and upgrade the amount of sum assured based on your new car’s Insured Declared Value (IDV).
2. Earlier, while purchasing the policy for the first time, you purchased a third party car insurance policy, but later realize that it isn’t sufficient enough for you. Hence, you now want a comprehensive car insurance policy.
3. Someone from your family, i.e. your child, or spouse, has begun driving your car and so you want to add them to the insurance policy.
4. You got a transfer to a different city and so you’ve changed your location.

If you plan to upgrade your car insurance policy, you must know that the price difference between the policy that you have now, and the upgraded one will depend on what kind of coverage you select. For instance, if you have a third-party liability policy and wish to upgrade it to a comprehensive one, there will be a rise in the premium amount, as own damage will be added based on Insured Declared Value of your car.

If you wish to enhance your existing comprehensive car insurance policy by purchasing add-ons, there will be a slight increase in premium, not much. Before you come down to any decision and decide on an upgrade, make sure to first compare the prices online using the car insurance premium calculator, so you get a rough idea and remain prepared to pay the premium amount.

Is it possible to downgrade the car insurance policy?

If you can upgrade your policy, it is also possible to downgrade it during insurance renewal. If you feel that you don’t need a particular add-on cover anymore, you can remove it during renewal. However, many people don’t shift from a comprehensive policy to a third-party one, but it is possible to do so.

Always analyze your requirements and make the necessary changes at the time of renewal. To avail of good deals, you can look for premium amounts for different policies available online, before taking the final call.