7 tips for car insurance policy renewal

Today, motor insurance is a compulsory legal requirement. Choosing a suitable auto insurance policy has become a part of car buying process. With the variety of products offered by insurance companies, picking up the appropriate one has become quite difficult for car owners. Buying car insurance is a continuous process as you need to renew the policy year on year. That means, you need to face this tricky situation every year.

Read more about Motor vehicle insurance law in India

Here are some tips that can help you make the right choice as well as save money while renewing your car insurance:

  • Compare Various Policies: Increasing use of internet is creating a strong consumer base across the entire sector. Almost all the insurers have their own website and are providing a platform to go through their products in detail. With the help of their online premium calculators, you can easily calculate the premium by providing some basic information. Process of visiting each and every insurer’s website for policy details is a time consuming process and inconvenient at times. There are various policy comparison websites available today which helps you compare the policies of different insurer’s side by side easily basis your need. Insurance comparison portals are the convenient platform to compare and choose the best plan as per your requirement. Comparing policies will help you get a better rate and thereby saves your money.

Read more about Benefits of choosing your car insurance online

  • Additional Benefits/ Riders: It’s very important to consider the additional features of the policy while buying. There are many add-ons like zero depreciation cover and engine protector cover which makes your policy more efficient and economical. These two are generally recommended as must have riders for the luxury cars whose values tend to depreciate more over the years.

Read more about What to look for in a car insurance

  • Know your Car’s Value: In case your car gets stolen or suffers a total loss, insurance companies will compensate to the extent of current market value of your car which is called as insured declared value (IDV) in insurance term. Hence it’s important to know the present value/depreciated value of your car so that you can ensure to get the highest possible IDV.
  • No Claim Bonus: No claim bonus is reward from insurer to policyholder in the way of discount on premium for each claim-free policy year. Discount ranges from 20% after completion of first policy year to 50 % on completing 5 years of policy without any claim. Hence ensure to make use of your no claim bonus benefit at the time of renewal as it can reduce your cost of renewal by up to 50% over the years.

Read more about Anatomy of car insurance plan

  • Read all the Clauses Carefully: You should read the terms and conditions, clauses carefully before buying or renewing your car insurance policy to be familiar with the type of plan and the benefits offered by your insurer. It’s essential to know the portability clause as you can switch your policy from one insurer to another at the time of renewal. It’s better to ensure all your benefits from existing insurer like no claim bonus and valid IDV are continued even after porting to avoid any problems in future.
  • Cashless Facility at the Network Garages: Running behind insurance companies for reimbursement is sometimes very inconvenient. Check with insurance provider on the list of cashless network garages. Exclusive list of network garages are normally available in their website. You can also inquire with your preferred/ regular garages on the list of insurance companies they are tied up with to ensure hassle-free cashless claims.
  • Go for higher deductibles: Deductibles are the portion of claim which is borne by you as a policy holder. There are basically two types of deductibles-compulsory and voluntary. Compulsory deductibles are the mandatory deductions made by insurer on each claim and are unavoidable. Voluntary deductibles are optional. If you are voluntarily willing to pay more out of your pocket, your premium will be reduced. Hence, it makes sense to opt for higher deductibles if you have a good driving profile.


On a closing note, it’s essential to make a right and comparative choice considering the factors like features of the plan, riders offered, convenience and affordability of rates etc. Tips given above will make renewing process quick and easy. Investing some of your valuable time on research and comparing different policies available will surely help you save considerable amount of money when renewing your car insurance policy.

Read more about All you need to know about car insurance in India

Read more about Car insurance terminologies you need to know

No claim bonus in car insurance

Reward makes people happier. In case of car insurance, your reward comes in the form of no claim bonus. The no claim bonus is an appreciable way to reduce the premium on your comprehensive car insurance policy. A little discount offered is also a feel good factor for every policyholder due to constant rise in prices.

What is No Claim Bonus?

Basically, no claim bonus is a reward from your insurer in the way of discounted renewal premium for not making any claim in the preceding year of your insurance policy. No claim bonus benefit starts from the first year renewal of your policy and the rate of discount ranges from 20% to 50% on ‘own damage’ premium portion. Damages to your car and yourself is covered under own damage premium portion of comprehensive insurance policy. Generally, more than 80% of your comprehensive policy premium is towards own damage. That means, you have significant benefit of no claim bonus on the insurance cost. No claim bonus benefit is not applicable if you have opted for only third party insurance policy.

NCB discounts increase gradually with every claim free year starting at 20% from first year policy renewal to the maximum of 50% at the fifth year renewal. However, if you file any claim, NCB benefit will be cancelled for the next renewal of insurance. NCB benefit also stands terminated in case of not renewing the policy within 90days of expiry of the existing policy.

Why is it essential to transfer No Claim Bonus? How to get it transferred?

No claim bonus is linked to you as a policy holder and not to the vehicle. NCB benefit stays with you even after selling your used car. For example, you have recently bought a new car Maruti Ciaz after selling your Maruti Swift, which was bought in 2012. You would have accumulated 45% of no claim bonus if you have not filed any claims during these years. Let’s say, you have to pay a premium of Rs.22000 for insuring your new car. Now, you could save around 10000 by transferring the NCB benefit that you have accumulated on your old car. The same way, NCB can also be transferred from one insurer to another while switching.

You just need to produce the renewal letter from your existing insurer which will have the NCB details mentioned in it. While switching, you need to produce the no claim bonus certificate along with the written request for transfer. In case of online insurance, NCB can be transferred just with the declaration. However, you cannot make any false declaration as your insurer can cross verify with your previous insurer and recover the amount later for any false declaration on your part.

Does it make sense to file small claims? What is the impact on NCB?

In case your car gets damaged, claiming from insurer is the first thought that you get in your mind. Though you have all the rights to file a claim, it’s important to think about its future impact on your insurance rates and NCB discounts. Even if you make a small claim it will straight away affect your NCB discount by bringing it down to zero. Your insurer might even hike your insurance rate for the next year.

For example, you have a 5-year-old Ford Fiesta with no claim till date. Thus, your NCB = 50%, i.e. maximum. So, for a small claim it makes sense NOT to claim.


no claim bonus

Hence, if the repair cost is less than the no claim bonus benefit, it does not make any financial sense to file a small claim.

It makes sense to give a calculation here simplifying the above example.

How does no claim bonus work on multiple cars/policies?

No claim bonus can be applied to single car at a time. Although you can transfer no claim bonus from existing car to the new car, it cannot be applied to both during the same time. That means, your no claim bonus cannot be applied to an additional car. NCB builds up on you and not on the car. If you are running your cars on two different policies, then no claim bonuses gets accumulated on each car insured under different policies separately.


In a simpler way, no claim bonuses are aimed at rewarding a car owner for safe driving in a way of discount on each year’s insurance rate. A discount offered makes a lot of difference. Hence, make only logical claims and enjoy the benefit of reward!

Read more about All you need to know about car insurance

Read more about Benefits of buying car insurance online

Read more about Anatomy of car insurance plan

Also, check out our video to understand what is No-Claim bonus

Is it worth buying a third party car insurance policy?

Third party motor insurance is a mandatory requirement in India under the provision of the Motor Vehicle Act, 1988. As the name implies the main beneficiary of the policy is the ‘third party’. Third party here means someone who is other than the insurance company and the policy holder- be it a pedestrian or person travelling in another vehicle. Third party insurance policy basically covers your legal liability for the damages caused to the third party by you while using your car. It covers death or bodily injury to third party and damages to third party belongings. There is no upper limit on the liability cover for bodily injury and death. However, cover for third party property damage is limited to the maximum amount of Rs.7.5 lac. Any amount over and above the upper limit has to be borne by the policyholder.

Also check out our video below to know the basics of Third party car insurance


Value of the car plays a major role when deciding which type of insurance is suitable. People with expensive car normally buy a comprehensive insurance policy as it covers wide range of damages. Damages to your car, personal accident and legal liability to third party are part of the cover. It provides end-to-end coverage. In comprehensive policy, premium is relatively more as more than 80% of the total premium is towards covering ‘own damage’. Own damage includes personal accident cover for insured and damages to his car. People with expensive and new cars would normally opt for this policy. On the other hand, people who are using older cars, inexpensive models will normally prefer standalone third party insurance policy. In such cases, cost of repair and replacement of parts are cheaper. Hence, it does not make much sense to pay more and go for comprehensive plans. Premiums for standalone third party insurance policy are cheaper. Policy comes with a standard premium rates based on the engine capacity of car. These premium rates are not decided by insurance companies. Third party insurance premiums are decided and revised by IRDAI yearly based on claim census and cost inflation.

Current rates of premium for third party insurance are as below:

third party car insurance


Moving on, let’s understand why it is essential to have a third party insurance policy.

Benefits of third party car insurance policy

  • It reduces your financial burden of repairing the vehicle or compensating the bills of other party in case of an accident caused by your car.
  • It saves you from shelling out huge amount of medical bills in case the driver or the passengers of other vehicle suffer any serious injuries as a result of an accident. Third party insurance policy provides the coverage for any injuries/ death of the driver or any passenger in the other vehicle in an accident wherein you are held responsible for the loss.
  • Third party insurance policy saves you from financial stress at a nominal cost.


Claim Process

Making a third party car insurance claim is complex process. Process flows in a below way:

  • Lodging a complaint and filing FIR with the Police
  • Approaching a lawyer with charge sheet
  • Case gets registered in the Motor Accident Claims Tribunal which comes under the jurisdiction of the area where the accident took place or over the area where the claimant or policyholder resides.
  • Court hearing to scrutinize the evidence
  • Liability will be fixed basis court’s decision
  • Your insurer will compensate the loss if the decision comes in claimant/third party’s favour.



To sum it up, it’s compulsory to have a third party car insurance policy in India as it is a statutory requirement. Standalone third party insurance policy will be more relevant if your car is an older and low-priced model. You can get it repaired easily at a cheaper rate instead of paying more premiums on comprehensive plan year on year. Third party insurance Policy comes at a minimal premium and very much cost effective. On the other hand, comprehensive policy may make more sense if the value of your car is more or if it was purchased in recent years. With the heavy traffic, chances of getting into unexpected accidents are quite common these days. It’s better to be safe by having insurance in place. You can buy standalone third party insurance policy or the comprehensive insurance plan based on your requirement.

Read more about All you need to know about car insurance

Read more about Benefits of buying car insurance online

Read more about Anatomy of car insurance plan

When will car insurance not cover you?

For every car owner, his car is a living entity with soul. Everyone is protective about their valued asset. Even with all the safety gadgets installed, your cars safety on the road is unpredictable and any damage to your vehicle can put you under a lot of financial pressure. This is where the role of car insurance comes in.  Scope of coverage, exclusions and add-ons are the key points to be considered along with affordable premium rates while buying insurance for your car.

To understand when not to claim car insurance let us understand the scenarios when your car insurance claim can get rejected.

When can your car insurance claim get rejected?

Below are some of the most common situations when your claim gets rejected:

  • You were driving the car with expired driving license. Your claim in such situation will be rejected by Insurance companies as they do not cover damages caused due to driving without a valid driving license.
  • There is a heavy rainfall in your area. You are driving on waterlogged road. Due to water-logging your car engine gets damaged. You register a claim for repair cost. In this case, your claim gets rejected as consequential losses and electrical breakdowns are not covered in the main policy.
  • You have been using your Honda city for 5 years now. Due to more usage engine has weakened and you are getting a scuffing noise from break. In this case, claim would be denied by the insurer as gradual wear and tear is excluded in the policy.
  • Insurance companies will not tolerate your claims if an allegation on driver for driving under the influence of alcohol or drugs is proved.
  • Your claim for engine damage due to leakage of lubricating oil will be denied by insurer as mechanical failures are excluded from the basic cover.

However, some of the reasons can easily be fixed by opting for some additional riders at an added cost. For example, Zero depreciation rider will give a benefit of cover for wear and tear; engine protector rider will cover mechanical failures and electrical breakdowns.

When doesn’t it make sense to file a car insurance claim?

It’s quite obvious that you think of approaching your insurer for a claim as soon as your car is damaged. But, it’s important to assess the amount of loss as your claim may affect your no claim bonus benefit and future premiums. Get a quick estimate of repair and then decide whether or not to file a claim. Adverse claim history will directly impact your no claim bonus and you will end up paying higher renewal premium. If your car is not damaged badly and getting it repaired would not cost you much then it’s better to forgo the claim.

For an instance, your 4 year old Swift is damaged in a minor accident. The garage people have given an estimation of Rs.4000 for rectifying the damage. Without making a second thought, you register for a claim with your insurer. Suppose, you haven’t made any claims in last four years of the policy, then you would have definitely accumulated good amount of no claim bonus. Let’s say, your no claim bonus is Rs. 6000. In this case, by filing a claim you will lose out Rs. 6000 no claim bonus benefit on the next renewal premium and premium rates would also go up because of the adverse claim history.

There are more frequent chances of tiny accidents in metro cities. Hence it’s advisable to consider the impact of claim on future premiums and compare the quantum of loss with benefits that you have. If the benefit is considerably higher than the estimated cost of repair, then it’s not worth filing a claim. You could save much more by just paying out of your pocket.

When should you go for third party claims?

When your car is damaged in a traffic accident with another vehicle, you will have two options for claim (a) with your own insurer (b) third party claim. You will lose out on NCB benefit (especially if you are in 5th or 6th year of car insurance) by filing a claim from your own insurance company.But, many people do not prefer to go for third party claims, probably because it’s a clumsy and time consuming process. Isn’t it better to file the claim as ‘third party’ instead of loosing on ‘no claim bonus’ benefits?Yes. It’s definitely better to opt for third party insurance claim when you are not at fault in an accident.

Read more Is it worth buying third party car insurance policy?


To sum it up, it’s important to understand the terms of car insurance policy in detail before buying.You should keep in mind that the basic objective of car insurance is to provide financial protection and it does not make any sense to file the small claims which can adversely impact your insurance rates.

Read more about All you need to know about car insurance

Read more about Benefits of buying car insurance online

Read more about Anatomy of car insurance plan

How cashless insurance can save you the day money ends?

8th November 2016 was a historic day in the Indian economy with the Government banning the use of Rs.500 and Rs.1000 currency notes with immediate effect. For people hoarding black money, it was a Black Tuesday while for the common masses it was chaos. Lack of understanding of the effects of the changed regulation resulted in chaos and anarchy everywhere. Closer home I saw panic grip my family when my grandfather’s health worsened and we had to hospitalize him. Though we had enough cash resources at our disposal we didn’t know whether our now useless cash (since it was in denominations of Rs.500 and Rs.1000) would come to any use. Panicking and restless, we rushed to the hospital which declined our mode of payment (cash). Fresh out of options, we went to a Government hospital which was accepting cash payments and got our grandfather treated.

In this entire episode you might be wondering what happened to our health insurance policy?
Well, we had a policy but the claim payable was on a reimbursement basis. It meant that we had to bear the cost ourselves and later get the same reimbursed from the insurer after submitting the hospital bills. All this time, this clause never hurt our family because we always had spare cash for such emergency situations. But, yesterday’s unique circumstances made it unusable!

Was there an alternate solution to this emergency my family faced?
Yes, there was and it is called ‘CASHLESS HOSPITALIZATION’.

What is cashless hospitalization?

A common feature of most health insurance plans, cashless hospitalization enables policyholders to seek medical treatments at hospitals which are tied-up with the insurer. The medical bills are directly settled by the insurance company and the policyholder is spared the burden of shouldering the medical bills himself.

Why is it important?

Let us start with what happened right now when my family temporarily lost access to cash, and a medical emergency came up. There are many other reasons as well when you may not have immediate access to large amounts cash when it’s most needed. Simply, banks may be closed that day or you may be traveling out of town at the time of hospitalization. You may have just used up your saving for something else or god forbid you may have hit the hard times in your job or business. At such times, the cashless benefit can take care of your major health expenditures, and spare you the stress of arranging for large sums of money in a short time.
You should ensure that the health insurance plan you choose has cashless benefit for another important reason. Without the cashless benefit, you will first have to pay the bills yourself and then reimburse the amount by filing a claim with the insurer. As such, our finances are depleted and are restored only when the claim is admitted (which takes some time). Cashless hospitalization, on the other hand, does not involve our finances at all. The bills are settled directly and we don’t have to drain our savings for meeting them. Thus, they are convenient and hassle-free.

The final word

The recent demonetization action by the government is reminder to us that life is full of uncertainties and its best to be prepared. Having a health insurance plan with cashless benefit is an essential part of this preparation. Nowadays there lots of options for health insurance at price points starting as low as Rs. 2,000 per year. Just make sure that you choose a health insurance plan from these options it offers the cashless benefit at hospitals that you would like to go to. Turtlemint can help you figure that out. So let’s go cashless now, and fear not the day when money ends!

Read more about What is Health Insurance

Read more about  An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms