Avoid These Mistakes When Renewing Car Insurance Online

Car insurance renewal is a routine task, but it’s also a critical one. With the growing ease of renewing car insurance online, many vehicle owners complete the process quickly, often without reviewing key details. However, small mistakes at this stage can lead to gaps in coverage, loss of important add-ons, or even policy rejection in case of a claim.

Understanding what to avoid during online car insurance renewal can help you make informed decisions and ensure your vehicle remains properly protected. In this guide, we will highlight common mistakes and guide you on how to prevent them for a smoother, error-free renewal experience.

1. Skipping Basic Research

Many people jump straight into renewal without checking the insurer’s background or comparing prices. Before you renew, check if the insurer is registered with the Insurance Regulatory and Development Authority of India (IRDAI). Always verify policy details, user reviews, and the customer service record of the insurer.

2. Not Comparing Policies

While renewing, don’t just click ‘renew’ without exploring options. Sometimes, another insurer might offer better coverage at a more affordable premium. Whether you’re choosing a  3rd-party car insurance or a comprehensive plan, comparing features and prices ensures that you’re not paying more than necessary.

3. Choosing Minimum Coverage Just to Save Money

A third-party car insurance policy is mandatory under the Motor Vehicles Act. It protects you against liabilities if your car causes damage to another person or property. But it doesn't cover damages to your car.

If you’re driving a newer or high-value car, a comprehensive policy might be more suitable. It will protect you from theft, accidents, fire, and natural disasters, too.

4. Not Installing Anti-Theft Devices

Cars equipped with certified anti-theft devices are considered lower-risk by insurers. Devices approved by the Automotive Research Association of India (ARAI) may qualify you for savings on your premium. Installing one before renewal could reduce your cost, especially with comprehensive coverage.

5. Mismanaging Add-Ons

Add-ons like Zero Depreciation Cover, Roadside Assistance, and Engine Protection can be valuable. But choosing too many unnecessary add-ons can inflate your premium. Pick only those that match your usage and needs. For example, Zero Depreciation is beneficial for cars up to 5 years old, but may not be suitable for older vehicles.

Many insurers, including Tata AIG General Insurance Company Limited, simplify this decision by offering easy online tools that let you select add-ons based on your car’s profile. Plus, you can renew in just 2 minutes, with no paperwork, and receive SMS alerts to ensure you never miss a renewal deadline.

6. Selecting the Wrong IDV

Insured Declared Value (IDV) is the current market value of your car. It affects both your premium and the claim amount in case of total loss or theft. A higher IDV means better protection, but it also comes with a higher premium. Don’t choose the lowest just to save money. It might hurt your payout later.

7. Ignoring the No Claim Bonus (NCB)

If you didn’t make any claims last year, you may be eligible for a No Claim Bonus, ranging from 20% up to 50% for five consecutive claim-free years. Make sure your NCB is transferred correctly at the time of car insurance renewal. This benefit reduces your premium and can be easily lost if not handled properly.

8. Not Considering Voluntary Deductibles

Choosing a high voluntary deductible can reduce your premium, but it also increases your out-of-pocket expenses during a claim. Pick a deductible amount that balances cost savings with affordability in case of an accident.

9. Giving Wrong Information

Always provide accurate details about your car, driving history, and previous insurance. Providing incorrect information, such as hiding past claims or modifying vehicle specifications without declaration, can lead to claim rejection. Insurers rely on the truth you provide to calculate premiums and approve claims.

10. Delaying Renewal

If you miss your renewal date, your policy lapses, and your car becomes uninsured. Driving without valid insurance is a punishable offense. Even worse, you’ll lose your NCB if the policy is not renewed within 90 days after expiry. Always renew on or before the due date. Many insurers, including Tata AIG General Insurance Company Limited, offer timely SMS reminders so you don’t miss important deadlines.

11. Having a Long Gap Between Expiry and Renewal

If your policy has already expired and you delay renewal, insurers may require an inspection before issuing a new policy. This can increase your premium and cause inconvenience. A long gap can also affect savings and may even leave you without coverage when you need it.

12. Cancelling Before Buying a New Policy

Changing insurers is completely acceptable. However, do not cancel your existing policy before securing a new one because you could have a lapse of coverage on your vehicle. You should be sure to complete the newly purchased policy first and then consider whether to cancel the existing policy.

13. Neglecting to Check the Policy Document

After a renewal, don't save the policy PDF and forget about it. Always check it out once. Be sure to review the document carefully to verify that your name, whether registered or unregistered, as well as all details of the car, IDV, policy commencement and expiration dates, and add-ons, are accurate. If there are mistakes here, you have a higher chance of claims issues.

14. Ignoring Terms and Conditions

Each policy has inclusions and exclusions. For example:

Covered under a comprehensive policy:

• Accidents
• Fire, theft, or natural disasters
• Third-party liability
• Damage while in transit
• Personal accident cover

Not covered:

• Normal wear and tear
• Driving without a valid licence
• Influence of alcohol
• Racing or illegal use
• Travel outside the geographical limit of the policy

Reading the terms helps avoid surprises when making a claim.

15. Forgetting About Legal Compliance

As previously mentioned, a third-party car insurance policy is, at a minimum, a legal requirement in India. You can get fined or even imprisoned without taking out at least a 3rd party insurance policy. Therefore, regardless of whether you opt for a comprehensive plan, it is essential to ensure that your third-party policy remains valid and active at all times.

Final Thoughts

Renewing your car insurance online saves time and effort, but only if done correctly. Mistakes such as choosing insufficient coverage, missing renewal deadlines, or failing to compare plans can result in higher costs or denied claims. Avoid these errors and make informed choices during car insurance renewal to ensure you’re always legally compliant and financially protected. Remember, your insurance is not just a legal formality; it’s your safety net on the road.