How Often Should You Review Your Car Insurance Policy?
Reviewing your car insurance isn’t just a yearly formality—it’s a smart way to keep your coverage in sync with how you drive your four-wheeler. Whether you’ve moved cities, upgraded your car, changed your commute, or bought a second-hand vehicle, your policy should reflect those changes.
How Often Should You Review Your Car Insurance Policy? | File Photo
New Delhi [India], June 5: Reviewing your car insurance isn’t just a yearly formality—it’s a smart way to keep your coverage in sync with how you drive your four-wheeler. Whether you’ve moved cities, upgraded your car, changed your commute, or bought a second-hand vehicle, your policy should reflect those changes.
A regular review ensures your premiums, add-ons, and IDV still make sense and that you’re not missing out on better deals. Thanks to online platforms, reviewing and updating your policy is now quick, easy, and hassle-free.
Introduction
When it comes to protecting your vehicle, buying car insurance online is a great first step. But your job doesn't end there. Just like your lifestyle and driving habits evolve, your policy needs regular attention to stay relevant. Insurance is a safety net—but it’s the right fit only if it meets your requirements.
When Should You Renew Your Car Insurance Policy?
Let’s break this down based on real-life situations that are common in India. Most of us don’t drive the same way or live the same life year after year. Reviewing your policy ensures your coverage grows with you.
Here is when you should go for policy renewal:
1. At Least Once Every Year
Set a reminder—once every 12 months, sit down and go through your car insurance policy. Check if:
● Your premium still fits your budget
● Coverage types still make sense for your car usage
● You’ve added any accessories or upgrades worth covering
● Any previous claims affected your No Claim Bonus (NCB)
Even if nothing big has changed, an annual review ensures you're not missing out on better rates or relevant add-ons. And with insurers frequently updating their offerings, there could be a better deal waiting for you.
2. Before Your Policy Expires
This essential. Don't wait for your renewal SMS or call from your insurer. Start reviewing your policy 15 to 30 days before the expiry date. Driving without mandatory third-party insurance can lead to hefty fines or even legal issues.
Here’s what you should do during this window:
● Reassess your existing coverage
● Compare rates from other insurers
● Check if your insurer offers loyalty benefits
● Ensure the IDV (Insured Declared Value) is correctly updated
You must avoid making last-minute decisions and maintain continuous coverage. Break-in policies (renewals after expiration) may result in vehicle inspections, delays, or policy rejection.
3. After Major Life Events
Your lifestyle affects your risk profile. That means life changes often signal it’s time to review your policy. For instance:
● You moved cities: New areas may have higher accident or theft rates, which may change your premium.
● Your daily commute changed: Driving more increases your exposure to risks.
● You got married: You might want to include your spouse in the policy or change ownership.
● You bought a new or used car: Policy coverage should match your vehicle’s value and condition.
Each of these scenarios deserves a fresh look at your car coverage.
4. After Any Vehicle Upgrade or Modification
Car owners often modify their vehicles—adding CNG kits, new alloys, or infotainment systems. But did you update your policy after making these changes?
Not doing so can mean:
● These parts won't be covered during claims
● Your car’s new value isn’t reflected in the IDV
● Some insurers might even reject claims related to unreported modifications Whenever you invest in your car, take some time to review your policy.
5. If You Switch to a Second-hand Vehicle
Buying a used car is a common practice, but many people overlook the importance of proper insurance during this process. If you're buying a used car, reviewing the second-hand car insurance is crucial.
Here’s what you need to ensure:
● Ownership is transferred along with the policy
● You check the policy type and coverage limits
● The policy hasn't expired or lapsed
● It includes benefits like personal accident cover, if required
Skipping this step may leave you without protection, even if you assume the previous owner’s policy is valid.
Why Policy Reviews aren’t Just a Formality
Many people renew their car insurance only because it’s legally required. While that’s important, what really matters is whether your policy still meets your current needs. Life doesn’t stay the same, and neither should your insurance.
Ignoring timely reviews can lead to:
● Insufficient coverage during emergencies
● Missed discounts or benefits
● Penalties for expired policies
● Unwanted out-of-pocket expenses after an accident
Key Things to Look for During Car Insurance Renewal
When you sit down to review your policy, here’s what you should be checking:
A. Coverage Type
Do you have third-party or comprehensive insurance? Does your lifestyle or car usage demand something more?
For example, if your car is mostly parked and rarely driven, you might want to lower your IDV to save on premiums. If you take long trips or own an expensive car, a comprehensive plan with additional add-ons may be a better fit.
B. Policy Exclusions
Know what’s not covered. Every policy has exclusions. Common ones include:
● Driving without a valid licence
● Drunk driving
● Damages from war, nuclear risks, or intentional acts
C. Add-On Requirements
Does your current plan include zero depreciation? Engine protection? Roadside assistance? You may want to consider these add-ons as they can save you big money during claims.
D. Premiums and Discounts
You might be eligible for discounts you didn’t know about. These could include:
● No Claim Bonus (NCB)
● Membership discounts
● Installing anti-theft devices
● Bundling policies with the same insurer These can help reduce your costs.
Is It Easy to Review Policies?
Thanks to digital platforms, policy reviews no longer require agent appointments or huge documentation. With just your policy number and vehicle details, you can:
● Compare plans
● View your current IDV
● Modify add-ons
● Renew instantly
Many platforms offering car insurance online also allow you to schedule reminders, view claim history, and calculate updated premiums. This makes annual or situation-based reviews much easier.
Conclusion
Your car insurance policy isn’t just paperwork—it’s your safety net. Review it yearly, update it after changes, and stay informed. Timely reviews provide you with peace of mind, enhanced protection, and long-term savings. Don't wait—put your policy review date on your calendar today.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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