Why should you do timely renewal of car insurance?

The four-wheeler insurance is not valid for a lifetime. It comes with an expiry date. Most policies are valid for a year. The Insurance Regulatory and Development Body of India keep introducing new rules regarding the policies, which might have a shorter or longer policy period than a year. However, even they have a defined expiry date. Expiry date means the end of the contract, i.e., your car insurance is invalid and does not help while you drive on the Indian roads.

If you want to continue riding on the Indian roads carefree, you must do a car insurance renewal. Why is it important to do timely renewal?

It is essential

The compulsory aspect of car insurance has been emphasised on several occasions. First-time car buyers are told that buying the policy is good from a legal perspective. But along with buying, renewing them timely is essential too. Considering insurance policies are limited period plans, they require renewals for undisrupted coverage. Keep renewing the policy and keep ensuring the insurance coverage.

Non-renewal leads to legalities

Driving with expired insurance is not good, especially from the legal implications’ perspective. When the policy officer stops you, they will not check if you had the policy. They want to know if the vehicle is still insured. Hence, validity is crucial.

Renew instantly and avoid hassles

It is better to do car policy renewal weeks before the expiry date. If your insurance expires and you get to know about it only once the official catches hold of you, you pay the fine. For avoiding this, renew the policy as soon as possible. This is because repeated offences like such lead to higher penalty and more cash outflow from your account.

Non-renewal leads to financial liabilities

If you do not renew the third-party liability, it could be troublesome if your car gets involved in an accident and causes harm to the third parties. Here, the insurer will not be liable to pay for the damages as you have not renewed the policy, and you will need to manage the third party by yourself.

Can lead to a financial outflow

Not renewing the own damage component, which is a part of the comprehensive policy, leads to financial outflow, especially if the vehicle needs repair work. As the cover expires, you need to settle the garage bills without the insurance company’s intervention.

No cover during the grace period

Insurance companies offer some grace period after the expiry of the policy. This is when you need to take immediate action and do car insurance policy renewal. This is the window within which you renew the plan for avoiding higher premiums at a later point. If your car gets damaged during the waiting period and you raise a claim for it, the insurer rejects them on the grounds of an invalid policy.

Non-renewal means resetting NCB

When there is a No Claim Bonus reset, it is terrible news. It means the accumulated NCB that results owing to not making claim during the year becomes zero. The NCB, which could have been 50% for making no claims for consecutive years, gets reset if you do not renew the plan before 90 days of the policy expiration.

Irrespective with whomever you do the renewal, like insurance companies or agents, the car insurance renewal online offers plenty of benefits and saves you from the mentioned hassles. Renew before expiry and stay insured always.