Your car is more than a way to get around; it is an asset worth money. Like all big assets, your car merits the best protection. Car insurance renewal is crucial for this reason. Driving a car without a valid insurance policy in India will get you into trouble. Driving a car without car insurance can result in the imposition of a fine of ₹2000 or even lead to imprisonment for up to three months. Car insurance can be renewed very easily over the internet. Renewing car insurance on a yearly basis will keep you covered. Here’s a comprehensive guide to car insurance renewal.
WHAT IS CAR INSURANCE RENEWAL?
Car renewal is simply taking what you have under your car insurance and continuing it for one more term, which is usually a year. Renewal would simply entail looking at the coverage you already have, changes you might have to make to your policy, or even add-ons you might be interested in. If you like what you have now, you can renew directly. If not, you can also choose to switch to another insurer that fits your requirements better.
Most insurance companies will remind you of an upcoming renewal date so that you won’t forget yours.
WHY YOU SHOULD RENEW VEHICLE INSURANCE?
There are some compelling reasons to renew your car insurance every year:
Maintains Continuous Coverage
Renewing on time ensures that you continue to maintain continuous coverage. Any lapses in insurance mean that liabilities you incur while driving might go unpaid while leaving you facing possible out-of-pocket costs for damages.
Compliance with Motor Laws
Being up-and-running with motor laws means driving safer and more lawfully.
Indian law mandates a minimum third-party cover for all vehicles plying in public roads.
Avoid Liability for Tolls
A lapsed policy leaves you liable for all collections of tolls due to accidents, theft, or natural disasters.
Safeguard Your No Claim Bonus (NCB)
If you have not filed a claim in any policy term, your insurer provides you with a No Claim Bonus: a discount on your premium at renewal. Missing a renewal can make you ineligible for this discount.
Avoid Vehicle Inspection and Premium Increase
Making timely renewals helps you avoid the need for a vehicle inspection and a possible hike in premiums that can creep in as insurers consider your car an unloved asset when the renewals are missed.
STEPS TO RENEW YOUR CAR INSURANCE POLICY
Renewing a car insurance policy online is quicker and more hassle-free than renewing over the counter. Here’s how you could do it.
Select Your Insurer
There are numerous options presented to people in terms of selecting the right insurer. Most of them exhibit excellent customer service and provide relatively reasonable terms. It is highly advised to go on and compare policies if one is either continuing with their current insurance or switching to the new one.
Log In at the Insurer’s Website
After finalizing which insurer you want to use, log into their official website and choose to renew your car insurance policy from them.
Provide Information Regarding Your Policy
Fill in your details and include the kind of policy you want to renew. Most insurance companies have an online form that can either update or confirm your preferred coverage options.
Add-on Covers
For full cover, you can get add-ons for zero depreciation, roadside assistance, or NCB cover as well for added comfort.
Pay
Lastly, you pay for the chosen policy and add on any add-on covers. The insurer should be able to send you an email with the renewed policy once the payment has been confirmed.
ADVANTAGES OF CAR INSURANCE POLICY RENEWAL
The above renewed policy will give you various advantages as you continue to be protected besides being on good terms with the law:
Third Party Accident
If there is an accident in which third parties suffer damages, your renewed insurance will pay out for their losses, thus fulfilling your obligations under law.
Comprehensive Cover
Beneficial in case of damages caused by both man-made and natural events like floods, earthquakes, riots, and theft, thus giving you peace of mind.
No Claim Bonus (NCB)
Just in case you do not raise claims, you can obtain an NCB on your premium. NCB goes up to 50 percent after some years of having no claims.
Add-on Options
Additional features come at the time of renewal, and they will upgrade your covers like engine protection, accessory covers, and zero depreciation.
ONLINE RENEWAL
Renewing online is a faster and cost-effective proposition as compared to offline renewal. One can get a quote, compare policies and make the purchase within minutes.
If you find a policy that better meets your needs, renewal time is the best time to find another provider. In most cases, there are many who end up buying their first policy through the car dealership without doing the due scrutiny, but switching is easy and gives you access to competitive rates and options.
RENEWAL FOR USED CARS
Whether your car is new or pre-owned, valid insurance is required to hit the roads. With used cars, renewal is an opportunity to upgrade coverage and bring in any new protection you may need.
CONCLUSION
Renewing car insurance keeps you afloat legally and financially when on the wheels. Receiving it in time keeps you eligible for bonuses like NCB, saves you from premium hikes, and lets you add new protections. Your policy, either existing or new, keeps you protected.
Stay protected, follow the above steps, and keep your policy renewed for a worry-free driving experience.
