Why Is It Important to Renew Car Insurance on Time?

 

Importance of Renewing Car Insurance on Time 

The following are the reasons why it is important to renew Car Insurance on time.

 

1. Legal Requirement

As per the Motor Vehicles Act of 1988, Car Insurance is a legal requirement to drive in India. Failing to carry valid Insurance can result in fines or even imprisonment. Essentially, driving without Insurance and driving with expired Insurance will attract the same legal penalties. Moreover, repeated offences will incur heavier fines and other penalties. Therefore, it is critical to renew your Car Insurance on time.

 

2. Financial Liability

Third-Party Car Insurance offers financial protection against third-party liabilities. Meaning if a third party suffers injury, death or property damage as a result of an accident with your car, this insurance policy will financially compensate the third party. You will, therefore, be responsible for covering third-party liabilities out of your own pocket if you have not renewed this insurance policy.

 

3. Financial Protection

Own Damage Car Insurance provides coverage against collisions, fires, theft and natural and manmade calamities. Thus, if your Car Insurance is expired and your car winds up damaged, you will be left digging in your pockets to pay for the repair work. In addition, you will bear the whole monetary loss in the event that your car is stolen or lost.

 

4. Vehicle Inspection

If your Car Insurance is not renewed within a certain time, your vehicle will need to be inspected before insurance coverage is granted. This is to ensure that there are no pre-existing damages going into the new policy term. Apart from the hassle of the inspection itself, it is likely that your insurance renewal will get further delayed due to scheduling the inspection and receiving the results.

 

5. Higher Premium

Your Car Insurance premium will increase if your Car Policy is not renewed on time. At the time of buying a policy, you will be generally asked if your previous policy is active. If you are found to be in possession of an expired Car Insurance Policy, you will usually be charged more than if your policy is active.

 

6. Loss of NCB

No Claim Bonus (NCB) is a discount in the policy premium provided to customers who have not raised any claims during the policy period. You can gather a maximum discount of 50% of the Own Damage premium by avoiding making claims for five consecutive years. Please note that you can preserve your NCB for only around 90 days after your policy expires, beyond which you will lose your accumulated bonus altogether.

 

Benefits of Car Insurance Timely Renewal

Here are some benefits of timely Car Insurance renewal.

 

1. Legal Compliance: Under the Motor Vehicles Act of 1988, having at least third-party car insurance is mandatory in India. Timely renewal ensures compliance with the law.

 

2.Continuous Coverage: Renewing your Car Insurance on time ensures that you receive continuous coverage against accidents, theft, or natural disasters.

 

3. Avoiding Penalties: Driving with an expired insurance policy can result in penalties or fines if caught during routine traffic police checks.

 

4. Preserve No Claim Bonus (NCB): Timely renewal helps you retain your No Claim Bonus, which provides a discount on the premium for the next policy period if no claims are made.

 

5. Peace of Mind: Knowing that your vehicle is insured provides peace of mind while driving, as you are protected against unexpected financial liabilities.

 

Tips to Renew Your Car Insurance

Here are some useful tips to help you renew your car insurance smoothly and on time.

 

1. Set Reminders: Mark your calendar or set reminders on your phone a month before your insurance is due for renewal.

 

2. Review Your Current Policy: Check the policy coverage details in the policy wordings and ensure that it meets all your Car Insurance needs.

 

3. Check for No Claim Bonus: If you haven’t made any claims during the previous policy period, you should be eligible for NCB. Check if it is accounted for in the renewal premium.

 

4. Consider Add-Ons: Consider additional covers like Zero Depreciation, Engine Protection, or Roadside Assistance that may be beneficial to your specific needs.

 

5. Update Personal Information: Check and update personal details, like your contact information and address, that may have changed since the previous policy purchase/renewal.

 

6. Inspect Your Car: Ensure your vehicle is in good condition and free of any pre-existing damages that could affect your renewal premium or claims process.

 

7.Evaluate Deductibles: A deductible is what you pay during a claim. Choosing a voluntary deductible can lower your premium, but ensure it's a reasonable amount.

 

8. Opt for Online Renewal: Online Car Insurance renewal is quicker, hassle-free. Platforms like Shriram General Insurance website/app offer value-for-money policies.

 

9. Plan Finances: Ensure you have sufficient funds set aside for the renewal premium to avoid any delays due to financial constraints.

 

10. Read the Fine Print: Carefully read the terms and conditions of the renewed policy to understand exclusions, coverage details, and any other important information.

 

11. Renew Before Expiry: Aim to renew your policy well before the expiry date to avoid lapses in coverage and potential penalties.

 

Summing Up

While buying Car Insurance is important, it is equally important to renew your policy on time. Apart from continuity of coverage, on-time renewal offers other benefits such as legal compliance, NCB protection and peace of mind. Furthermore, take steps to avoid missing insurance renewal by setting a reminder on your phone and attending to reminder SMS, emails and WhatsApp messages from your insurance provider. Last but not least, at the time of renewal, make sure that your policy has all the necessary coverages.

 

FAQs

1. When is the optimal time to renew your Car Insurance?

The ideal time to renew your Car Insurance is before it expires. It is advisable to renew it well in advance to avoid the risk of forgetting or dealing with the hassle of a last-minute rush.

 

2. How much does a Car Insurance renewal cost?

The cost of Car Insurance will differ based on the coverages you choose and the NCB you are eligible for. To get a free quote, you can visit our website/mobile app.

 

3. What will happen if I miss my Car Insurance renewal?

If you miss your Car Insurance renewal, you won't have coverage and driving without Third-Party Insurance in India is illegal, leading to legal consequences. Also, if you delay beyond 90 days, you lose your No Claim Bonus and will be required to pay the full premium.

 

4. Can I renew my Car Insurance online?

Yes, you can renew Car Insurance online if your insurance provider has an online presence. Insurance providers like Shriram General Insurance have both website and app platforms where you can renew your Car Insurance in a hassle-free manner.

 

5. What is the maximum NCB I can accumulate?

You can accumulate a maximum NCB of 50% of the Own Damage premium after completing five consecutive claim-free terms.