Why Is It Essential To Go For Timely Car Insurance Renewals?
Every car in India should have a car insurance policy. Whether you own a hatchback or an SUV, the vehicle must be insured if it is in good working condition. Every car insurance policy has a period of validity. While insurance for new cars is valid for three years at first, it must be renewed annually after that.
The Internet has now made it easy to identify these specifications and bring ease of policy renewal to the customer at a single click. While renewing your policy, it’s a wise option to use a car insurance calculator and understand the premium prices, add-ons and deductions better.
Why is it so important to renew your car insurance policy before the current policy expires?
Here are six reasons why you should renew your car insurance policy as soon as possible:
- Ensures ongoing coverage:
Insurance for car is required to provide financial protection for your vehicle. It also offers other benefits to the insured vehicle, such as a no claim bonus, cashless repair facility, zero depreciation cover, etc.
However, your vehicle will be covered by car insurance only if your policy is active.
- Obey traffic regulations:
According to Indian motor laws, every car must be covered by a valid car insurance policy that provides at least third-party coverage. This means your vehicle should always be insured if it is driven on public roads. If you do not renew your policy on time, your car insurance coverage may end. Hence, it is essential to know how to check car insurance and its benefits/deductions better, prior to finalising a policy.
- Eliminates financial liability:
Your motor insurer covers any loss or damage caused by your car if you have a car insurance policy. Whether your vehicle has been damaged or has caused damage/injuries to a third party, your insurer will cover the resulting financial liability.
- The no claim bonus is still in effect:
No Claim Bonus is an added reward provided to car owners by motor insurance companies for not filing any car insurance claims during the previous policy year. If you do not file a single claim during the policy year, your insurance company will give you a reward on your renewal of car insurance, also known as a No Claim Bonus (NCB).
However, if you do not renew your car insurance policy within 90 days of its expiration, you may lose your accumulated NCB. Your NCB is valid for up to 90 days after the expiry of your previous policy. However, if you do not renew your policy during this period, you will forfeit your accumulated NCB.
- Ensures simple renewal procedure:
Renewing your car insurance on time helps you escape from your car being inspected again. Although, if you forget about the renewal of car insurance on time and attempt to renew your car insurance policy after a gap, the insurer may feel compelled to inspect your vehicle.
An inspection of your vehicle may cause you undue stress. Furthermore, it may result in the discovery of certain damage or regular wear and tear on your car. This may result in a decrease in your vehicle’s Insured Declared Value (IDV) or an increase in the premium amount.
- Prevents premium increases:
As you know, a lapse in the policy of insurance for car may increase your insurance premium. This occurs because you will have to purchase car insurance from scratch, which may result in costly policies. Furthermore, the insurance company will raise your premium as soon as they learn of your expired policy. Not only that, but you will lose your accumulated NCB, which could have reduced your car insurance premiums if you had renewed your policy on time.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.