Most drivers renew their motor insurance every year without a second thought. But does your policy still meet your needs? Insurance requirements change over time—your car ages, your driving habits evolve, and new coverage options emerge.
To ensure you’re not overpaying or underinsured, run your policy through these 5 essential tests. If it fails even one, it might be time for an upgrade.
Test #1: Does Your Coverage Match Your Car’s Current Value?
Why It Matters
A common mistake is sticking with the same coverage level as when your car was new. Over time, your vehicle depreciates, and comprehensive insurance might no longer be cost-effective.
What to Check
If your car’s resale value has dropped significantly, adjust your IDV to avoid overpaying.
Zero Depreciation Cover – Worth it for cars under 5 years old, but may not be necessary for older vehicles.
Third-Party vs. Comprehensive – If your car is over 7-10 years old, third-party insurance might be more economical.
Fail? Recalculate your car’s current worth and adjust coverage accordingly.
Test #2: Are You Missing Key Add-Ons That Could Save You Money?
Why It Matters
Basic insurance may not cover all risks. Strategic add-ons can enhance protection while lowering long-term costs.
Must-Have Add-Ons to Consider
🔹No-Claim Bonus (NCB) Protection – Safeguards your discount even after a claim.
🔹 Engine Protection – Crucial for flood-prone areas.
🔹 Roadside Assistance – 24/7 help for breakdowns, towing, and fuel delivery.
🔹 Return to Invoice (RTI) – Pays the original invoice value (not depreciated value) if your car is totaled.
Fail? Review your policy documents or ask your insurer about missing add-ons.
Test #3: Is Your Insurer’s Claim Settlement Process Hassle-Free?
Why It Matters
A cheap policy is worthless if claims are delayed or denied.
Key Indicators of a Good Insurer
✔ High Claim Settlement Ratio (CSR) – Look for insurers with 90%+ CSR.
✔ Cashless Garage Network – Check if your preferred repair shops are covered.
✔ Digital Claim Process – Faster approvals via apps/online portals.
✔ Customer Reviews – Search for feedback on claim experiences.
Fail? Consider switching to an insurer with better claim support.
Test #4: Are You Getting All Eligible Discounts?
Why It Matters
Many drivers overpay simply because they don’t ask for discounts.
Common Discounts to Claim
No-Claim Bonus (NCB) – Up to 50% off for claim-free years.
Anti-Theft Devices – Discounts for GPS trackers or alarms.
Voluntary Deductibles – Agreeing to pay a higher excess can reduce premiums.
Membership Discounts – Some insurers offer deals for auto club members or corporate employees.
Fail? Contact your insurer and ask for a discount review.
Test #5: Have You Compared Quotes in the Last Year?
Why It Matters
Loyalty doesn’t always pay—new customers often get better deals.
How to Compare Smartly
🔎 Use Online Aggregators – Websites like Policybazaar, Compare.com, or Insurify show multiple quotes at once.
🔎 Check for New Offers – Insurers frequently launch promotions (free add-ons, lower premiums).
🔎 Negotiate with Your Current Insurer – Sometimes they’ll match a competitor’s price to retain you.
Fail? Get fresh quotes before your next renewal.
Final Verdict: Does Your Policy Pass?
If your insurance failed2 or more tests, it’s time to:
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Reassess your coverage needs (Test #1)
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Add missing protections (Test #2)
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Switch insurers if claims are problematic (Test #3)
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Claim overlooked discounts (Test #4)
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Compare and renegotiate (Test #5)