Don’t Renew Your Car Insurance on Autopilot: Check These 7 Things

We all know that owning a car comes with a tiny but never-ending to-do list. 

Tyre pressure, challan checking, insurance renewal, there’s always something that needs your attention.

You might use the MyMotor challan check app to check & clear your pending challan. 

But when an insurance renewal pops up on MyMotor, it’s very easy to just look at the price, make the payment and get back to your day.

Before you pay, just make sure to take a quick look at what’s covered and what’s not.

Whether your discounts are included and if the policy details are correct, these few minutes now can help you avoid unexpected messes later.

Need to renew your car or bike insurance?

MyMotor can help you compare and choose car insurance and bike insurance online, making it easier to manage your vehicle cover alongside other essentials like challan checking and RC details.

Whether youare renewing an existing policy or looking to get a new one, getting the coverage, IDV, add-ons and premium before making a decision can help you pick a policy that suits your needs.

Here are seven things to review before you renew.

1. What Does Your Policy Cover?

You might think, “My car is insured, so I’m covered.” 

But it really helps a lot to know what kind of cover you have, like:

Third-party insurance:

It covers your legal liability for injuries to others or damage to their property. 

It is a must on public roads in India, but it doesn’t cover repairs to your car.

Own-damage cover:

This one helps protect your car against covered risks like accidents, theft and fire. 

A comprehensive policy usually has both, subject to the policy’s terms.

Before renewing, make sure to check both expiry dates. 

And in case, if you bought a bundled policy with your new car, your third-party cover might still be active while your own-damage cover needs renewal.

2. Is the Insured Value Reasonable?

You’ll see Insured Declared Value, or IDV, somewhere in your renewal quote. 

The name sounds a little complicated, but the basic idea is very simple.

It’s the insured value used when your car is stolen or qualifies as a total loss, subject to your policy terms. 

It isn’t exactly the amount paid for every repair. As your car gets older, its IDV usually reduces to account for depreciation. 

Now here, choosing a lower IDV might lower your premium, but it can also mean a lower payout for theft or total loss.

So, if a quote looks unusually cheap, check this figure. Ask the insurer how it was calculated before deciding that you’ve found a good deal.

3. Have You Received Your Claim-Free Discount?

One important thing, if you haven’t made an own-damage claim during the past policy year, you might be eligible for a No Claim Bonus (NCB) when you renew. 

So, basically NCB is a discount on the own-damaged part of your premium, not your whole insurance bill.

The discount usually starts at 20% after one claim-free year and can increase to 50% over consecutive claim-free years. 

So, before paying, make sure to check that your renewal quote has the percentage you’re eligible for.

And in case you are switching insurers? 

You can usually carry your eligible NCB with you by submitting the needed proof. 

Just make sure that you share your claim history properly, including any claim that’s still being processed, so the insurer can apply the right discount.

4. Do Your Add-Ons Still Make Sense?

Well, it’s quite easy to carry forward last year’s add-ons without thinking about them.

But your driving habits might have changed. 

Perhaps you now take more highway trips or your manufacturer already provides roadside support.

Zero-depreciation cover can lessen depreciation deductions on covered replacement parts. 

Engine protection might cover certain damage excluded from standard cover. 

And roadside support can help with breakdowns and towing. Each has its own eligibility rules, limits and exclusions.

So, before keeping or removing an add-on, make sure to ask yourself: 

“When would I use this, and what would it actually cover?”

That's more useful than choosing every option or removing everything to make your premium cheaper.

5. How Much Would You Pay During a Claim?

A lower premium feels great today. But check what it actually means for your contribution during a claim.

Here, a deductible is the amount you pay towards a covered claim. 

Your policy may have a compulsory deductible, plus an optional voluntary deductible.

So, choosing a higher voluntary deductible can reduce your premium, but it also means paying more yourself when you claim.

For example, an additional ₹5,000 voluntary deductible means taking on that extra amount, along with other applicable deductions.

So, make sure to check depreciation, exclusions and add-on limits too. You might want a clear picture of what could come out of your own pocket.

6. Can You Get Repairs Where You Prefer?

Now, imagine needing repairs and finding out that your usual service centre isn’t in the insurer’s cashless network.

Before renewing it’s crucial to check whether your preferred workshop or authorised service centre is included. 

Also find out how to report a claim and get repairs approved.

Just remember that cashless doesn’t mean you pay nothing. Deductibles and expenses outside your cover may still be payable by you.

If you’ve claimed before, think about your experience. Was help easy to reach? Were the instructions clear?

When comparing insurers, keep the IDV, add-ons and deductibles kind of similar so you’re comparing an equal cover.

7. Are the Details and Dates Correct?

Last but not least, give your basic details one final look: your name, registration number, car variant, fuel type, contact details and financier information, where applicable.

Tell your insurer about relevant modifications, such as an added CNG kit. Renew before expiry. 

Since, a gap can leave you without the cover that has expired, and restarting own-damage cover may need a proper inspection. 

Also, check exactly when the new policy begins.

Once you’ve paid, download the issued policy and make sure that it matches what you selected.

To be honest you don’t need to overthink every small detail. 

Just give your renewal a few minutes of your time, ask about anything unclear, and choose cover you actually understand and find suitable.

It’s much easier to sort out questions now than when your car is already at the workshop.