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Understanding how upgradation works with Car Insurance renewal

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If you own an automobile, you need to back it with Insurance cover. This is mandatory according to the Motor Vehicles Act. Based on the regulations, you need to have a Third-Party cover at least. This helps fulfil liabilities when there is third-party damage. Hence, you stay out of trouble when your vehicle restricts others. This cover is sufficient to let you ply on Indian roads.

But if you want to protect your vehicle, you need to get a Comprehensive Car Insurance Policy. It provides you with extensive coverage. Here, you get compensated for your damage along with third-party liability. This is a more practical choice to protect yourself from unnecessary expenses. But if you missed out on opting for the same, fret not. You have the option to upgrade to it during renewal. But before that, read on to understand how it works.

Benefits

As aware, you get a wide coverage with Comprehensive Auto Insurance Plan. It protects both your vehicle and the third-party. Both the coverage gets merged into a single plan. Hence, you need not face the financial burden in any aspect. Moreover, choosing to upgrade to it gives you access to additional facilities. These include helpful riders and a cashless garage facility. You also get a reward called No Claim Bonus for completing a claim-free period.

Suitability

Renewal is the right time to make a change to your insurance plan. It enables you to correct any errors in the information provided. You also get to switch insurers if you find better deals. Similarly, it is ideal for changing your coverage. So, if you initially opted for a Third-Party Cover, you have the choice to switch to a Comprehensive Plan. This is how upgradation works in Car Insurance renewal. Your changing needs act as aggregators for the decision.

Add-on covers

If you are a savvy driver, you would have additional needs. Therefore, the basic coverage is not enough. In such instances, you get to opt for riders. These are extended covers that provide extra protection. They include covers for Depreciation, Consumables, Gap Value, Roadside Assistance, Passenger Assistance, Key Loss, Engine Safe, etc.

These meet our specific needs beyond the basic plan. They get easily added when you have a Comprehensive Policy. However, they add up to the premium cost. Hence, choose them carefully, considering your needs.

Inclusions & exclusions

Insurance plans come with some rules. It is essential to understand them not to get surprises during claim settlement. Even if you know the coverage, it is easy to get confused with them. Precisely why policy providers have a different section that explicitly mentions the inclusions and exclusions. Ensure to refer to it for making an informed decision. This is a crucial step when you upgrade to a Comprehensive Policy during online Car Insurance renewal.

Premium

When you do a Motor Insurance renewal, the premium cost changes. This happens every year as the Insurance Regulatory and Development Authority (IRDA) reviews the premium rates. Meanwhile, switching to a Comprehensive Plan attracts additional costs. Both these facts need to get considered during upgradation. You get the intimation about this when you do the Car Insurance renewal online.

To upgrade, you must switch to a Comprehensive Plan during renewal. If you already have it, make changes to the terms by reviewing it. This allows you to remove or add components based on changing needs.

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