Importance of renewing car insurance on time
Purchasing a car is definitely a very important milestone in someone’s life. But with joy and happiness comes the responsibility of taking care of its needs too. Whether it’s getting timely service or regular repairs, a car needs to be given attention too regularly. Amongst these needs, the most important one is buying a car insurance policy and keeping it active. A car insurance policy does not have lifetime validity. All the policies come with a date of expiry and mostly last for a year.
To make sure the benefits last and serve your needs, as and when needed, it is important to keep a track of the details related to car insurance renewal. If a policy expires, it means the contract ends and you can no longer count on the benefits of insurance. A timely car insurance renewal is vital and comes with a myriad of additional benefits.
Why you should ensure timely car insurance renewal?
Buying a car insurance policy is as vital as purchasing a car. A lot of factors make it important to keep regular track of your car insurance status. With more and more digitalisation, it is now much easier to check the status of car insurance online and find out the car insurance renewal details like the due date, the premium amount to be paid, and likewise. The insurance is often valid for a period of one year unless you have purchased a multi-year insurance policy.
Listed below are some reasons highlighting the importance of timely car insurance renewal –
Legal reasons: To be able to drive or ride on Indian roads, it is mandatory for all vehicles to at least have valid third-party insurance. Driving without a valid car insurance policy makes you a legal offender which can lead to high penalties and even imprisonment. As per the Indian Motor Vehicle Act, an expired car insurance policy is treated as not having car insurance. Hence, if you are involved in an accident, any cost arising from legal battles has to be borne out of your own pocket. This makes it even more important to keep a tab on car insurance renewal status.
You risk losing protection: Having an active car insurance policy is very beneficial as it offers coverage against financial burdens arising out of an accident. Any injuries to a third-party person or damage to third-party property are borne by the insurance provider if you have active third-party insurance. But with an expired car insurance policy, the coverage is also expired, leaving you financially vulnerable during these critical moments.
It requires a re-inspection of the vehicle: In case the car insurance renewal date is missed, the policy can get expired. This may need a re-inspection of the car before a new policy can be issued. For the inspection, the insurance provider sends their employee to visit and inspect your vehicle and the report submitted by him is scrutinized. A fresh policy quote is provided after verifying the details. This may also lead to an increased premium or a reduced Insured Declared Value of your car. In order to avoid these hassles, a timely car insurance renewal is advisable. Keeping a tab on the renewal dates and getting the renewal online is much easier and quicker.
You risk losing the No Claim Bonus: A No Claim Bonus is offered as an incentive for being a safe driver. It is given by the insurance company for not filing a claim for the entire tenure of the policy. This bonus amount is reflected through a percentage of discount on the premium amount at the time of car insurance renewal. This no-claim bonus, when accumulated for consecutive years can go as high as 50% of the total premium amount. But, in the event of a failure in car insurance renewal on time. This accumulated no-claim bonus is lost. Hence, getting a car insurance renewal on time is a must for every policyholder.
You risk paying a higher premium: When you purchase a new car insurance policy, you are not offered many discounts and hence the premium amount can be significantly high. Additionally, the premium can also increase due to depreciation and general wear and tear of your car. When the car insurance policy expires, you may have to follow the entire process of policy purchase which is cumbersome, more time-consuming and can be expensive. After missing the car insurance renewal date, the application is scrutinised more deeply.
It is a hassle: Whether it is handling third-party liabilities or risking a penalty for driving without an insurance policy or managing the car repair cost yourself, these are all hassles and cause unrequired stress. These take time as well as mental and physical effort. Getting a car insurance renewal on time can save you from all these hassles as well as financial burdens.
Stay insured by getting a car insurance renewal before the expiry
A car insurance policy is meant to protect the hard-earned car that you love dearly. It is hence important that it is well taken care of and taking measures to keep it secured when on the road. It is also vital to have active third party insurance at all times.
Car insurance renewal done on time ensures a safety net for the car as well as the finances. Now that you know about the various benefits of a timely car insurance policy renewal, ensure that you do not let it expire. Renewal before the due date allows you to easily compare the policies and plans from different insurers and check the coverages and other benefits to make an informed decision.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.