Looking for Online Car Insurance Renewal? Check Out 5 Tips to Get the Best Deal

Renewing a car insurance policy online is now easier than ever. But while the renewal process is simple and quick, there are a few smart ways that can help you get the best insurance at the best price. Five smart tips are discussed in this post.

Gone are the days when you had to visit your insurance provider or get in touch with the insurance agent to renew car insurance. The whole process is now online and can be completed within minutes.

But while the actual process of renewing the insurance and paying its premium is now quick and simple, there are a few things that you should be aware of to get the best deal. If you are planning to renew your car insurance online, here are a few tips that are sure to help-

  1. Comparing Policies is the Key

Even if your current car insurance is from a particular company, you can switch to a different company when renewing your insurance. If you are not satisfied with the service or benefits of an insurance provider or policy, you can look for a different company with better service/benefits.

To pick the best, you should compare the policies of the top insurers with your current policy. 3rd party insurance portals make the comparison easier by allowing you to customise your search and pick one that best suits your requirements.

  1. Choose the Right IDV

When buying a policy online, you must select the IDV of your car. This is advantageous as you no longer have to depend on insurance agents to tell you the IDV of your car which may or may not be correct. On the other hand, it can get confusing especially for people who know little about this. However, knowing the IDV of your car is rather simple. Just refer to the table below to get to the right IDV. Anything higher and you are unnecessarily paying a higher premium. And anything lower than this and you may be depreciating your car’s value more than needed, which may hurt you in the future when you may sell the car.

Vehicle’s Age Depreciation percentage for Calculating IDV
0-6 months 5%
6months-1 year 15%
1-2 years 20%
2-3 Years 30%
3-4 Years 40%
4-5 Years 50%
Above 5 Years As Mutually decided between the Insurer and the policy buyer
  1. Make Use of Your NCB

For every year that you do not file a claim, you receive NCB or No Claim Bonus. This bonus can be used to get a discount on the premium of the following year. The NCB if you do not file a claim in the first year of the car insurance is 20% and it increases up to 50% over a period of 5 years.

  1. Go for Higher Voluntary Deductible

The voluntary deductible is a fixed amount or percentage that you will be required to pay from your pocket for the repairs in case if your car is involved in an accident. The insurance provider funds the remaining amount.

Every car insurance allows you to set your own voluntary deductible. You can go for a higher deductible to reduce the insurance premium. However, make sure that you only increase the voluntary deductible by 5%-10% as in case of an accident you will be required to pay this amount from your pocket.

  1. Renew Before Expiry

Car insurance renewal should be done before the expiry of your existing policy. In many cases, if your car insurance is expired and you want to renew it, the insurance provider might want to inspect your vehicle. This might require you to pay a higher premium. Moreover, if your car insurance has been expired for more than 90 days, you will also lose the NCB as it resets after 90 days of non-renewal.

Saving Money on Car Insurance Online Renewal

If you want to get the best online insurance renewal deal, keep the tips mentioned above in mind, and you are sure to save a considerable amount of money.

Try to know more about how car insurance and renewal works as it will allow you to select car insurance that is not only affordable but full of great benefits and features too.

Author Image
Reed Hamilton

Mason Reed Hamilton: Mason, a political analyst, provides insights on U.S. politics, election coverage, and policy analysis.