Introduction
Renewing insurance may seem simple, but many drivers make small mistakes that ultimately affect coverage and their No Claim Discount (NCD). Recognizing these errors helps drivers avoid future problems. This article explains the common insurance renewal mistakes and how to prevent them.
Common Insurance Renewal Mistakes
Not Checking Vehicle or Owner Information:
- Misstating license plate, vehicle model, or owner’s date of birth.
- Incorrect information can cause claims to be rejected, making this one of the most frequent insurance renewal mistakes.
Not Adjusting Policy to Current Risks:
- Using an old policy for new activities like e-hailing or hire-purchase vehicles.
Missing the Renewal Date:
- Insurance gaps can affect NCD.
- Claims may be rejected if an accident occurs during the gap period.
Not Reviewing Required Add-Ons:
- Forgetting important additional coverage such as LLOP, PA, or Key Care.
Not Comparing Policies:
- Many drivers renew automatically without checking for cheaper or better coverage options.
Tips to Avoid Renewal Mistakes
- Verify all vehicle and owner information before renewing.
- Ensure your policy matches the vehicle’s current usage, including e-hailing or hire-purchase.
- Renew on time to prevent insurance gaps.
- Check and select only relevant add-ons.
- Use platforms like BJAK to compare prices and review policies easily, helping you avoid common insurance renewal mistakes.
Conclusion
Avoiding insurance renewal mistakes through careful review and proper policy selection helps maintain your NCD, ensures adequate coverage, and prevents issues when making claims.
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