Insurance Renewal · Pan India
5 Common Mistakes
People Make at Insurance
Renewal — And How to
Avoid Them
Renewing car insurance looks simple. But one small mistake can cost you thousands — or worse, get your claim rejected. Here are the 5 most common mistakes Indian car owners make, and exactly how to avoid each one.
Renewing your car insurance may look simple, but one small mistake can cost you more money — or trouble during claim time. Many car owners across India renew policies quickly without checking important details, and later face issues during accident claims. Here are the most common mistakes and how to avoid them.
In this article
- Ignoring IDV (Insured Declared Value)
- Missing No Claim Bonus (NCB)
- Wrong Vehicle Details
- Not Adding Helpful Add-Ons
- Renewing Without Comparing
1 Ignoring IDV — Insured Declared Value
Many policies renew with a very low IDV just to make the premium cheaper. But IDV is the maximum amount your insurer pays if your car is stolen or totally damaged. A low IDV means a low payout when you need it most.
❌ Low IDV
Low IDV
= Low premium
= Low claim payout
✓ Fair IDV
Fair IDV
= Slightly higher premium
= Better claim settlement
✓ Always choose a fair IDV — not too low, not artificially high. We help you set the right IDV based on your vehicle's actual market value.
2 Missing No Claim Bonus (NCB)
If you did not make a claim last year, you are eligible for NCB benefits up to 50% on your Own Damage premium. Many people forget to apply NCB — or lose it because the policy lapsed for even a few days..
WITHOUT NCB
Full OD premium
No discount applied
WITH 5-YEAR NCB
Up to 50% off OD
Earned for claim-free years
✗ Some people forget to apply NCB at all — and overpay
✗ Some lose NCB because the policy lapsed even briefly
✗ Some don't know their NCB percentage and accept whatever is offered
✓ Always check if your renewal includes your correct NCB percentage. We verify NCB before every renewal we assist with.
Learn about NCB protection add-on
3 Wrong Vehicle Details in Policy
Sometimes insurers or portals enter incorrect details during renewal. Small errors can become big problems when you file a claim — the insurer may dispute coverage based on a mismatch.
✗ Wrong engine or chassis number
✗ Wrong variant (e.g. VXI entered instead of ZXI)
✗ Incorrect fuel type (petrol vs CNG vs diesel)
✗ Wrong seating capacity
✓ Always verify your RC details match your insurance policy exactly. During a claim, these errors can create delays or outright rejection. Check engine number, chassis number, and variant carefully before accepting the renewed policy document.
4 Not Adding Helpful Add-Ons
Add-ons may cost a little extra — but they save thousands at claim time. Most Indian car owners skip add-ons thinking they are unnecessary. Here are the most important ones:
| Add-On | Why It Matters |
|---|---|
Zero Depreciation | Higher payout during claims — no depreciation deducted |
Engine Protection | Essential for waterlogging & flood-prone cities |
NCB Protection | Protects your NCB even if you make one small claim |
Roadside Assistance | 24×7 emergency help across India |
Consumables Cover | Covers oil, nuts, bolts, AC gas during repairs |
✓ We explain which add-ons are genuinely useful for your vehicle and usage — and which ones you don't need. No unnecessary upselling.
5 Renewing Without Comparing Insurers
Most people renew with the same insurer every year out of habit. But every insurer offers:
→ Different IDV values for the same vehicle
→ Different add-on availability and pricing
→ Different claim settlement ratios — some settle faster, some dispute more
AUTO RENEW SAME INSURER
May overpay
Miss better coverage options
COMPARE + CHOOSE RIGHT
Best value
Right IDV, add-ons & claim support
✓ Taking quotes from multiple companies ensures the best value — not just the cheapest price. We compare insurers for you and recommend based on your vehicle, usage, and claim settlement history.
Your Renewal Checklist
Before renewing your insurance policy, check each item below. Click to mark as done.
IDV is set correctly — fair market value, not minimum
Prevents underpayment at claim time
NCB percentage is correctly applied
Up to 50% discount on OD premium
Vehicle details match RC exactly
Engine, chassis, variant, fuel type
Right add-ons selected for my vehicle
Zero Dep, Engine Protection, NCB Protection
Policy compared with at least 2–3 insurers
For best IDV, add-ons & claim settlement ratio
Frequently Asked Questions
The most common mistake is ignoring IDV (Insured Declared Value). Many people choose a very low IDV to reduce premium, but this directly reduces the claim payout in case of total loss or theft. Always choose a fair IDV — not the minimum offered.
If you don't apply your No Claim Bonus (NCB) during renewal, you lose a discount of up to 50% on your Own Damage premium. NCB is earned for every claim-free year and must be actively applied at renewal. If the policy lapses, you may lose the NCB entirely.
The most important add-ons are Zero Depreciation (for vehicles under 5 years — gives full payout without depreciation deduction), Engine Protection (essential for flood-prone cities), NCB Protection (protects your bonus even after a small claim), and Roadside Assistance. Consumables Cover is also useful for comprehensive policies.
Every insurer offers different IDV, add-ons, and claim settlement ratios. Renewing with the same insurer without comparing can mean overpaying or missing better coverage. Comparing ensures you get the right value — not just the cheapest price. A good claim settlement ratio is more important than saving ₹200 on premium.
Wrong details — such as incorrect engine number, chassis number, or variant — can give the insurer grounds to dispute or delay your claim. Always verify that your policy document matches your RC (Registration Certificate) exactly before accepting the renewed policy.
Want us to check your renewal?
At Anuja Solutions, we review your current policy, verify IDV and NCB, check vehicle details, and recommend the right add-ons — before you renew. Across India.
✓ Better claim experience ✓ Right IDV & NCB ✓ Honest add-on guidance ✓ POSP certified advisors