Owning a car comes with significant responsibilities, like renewing your car insurance on time. Although renewing your car insurance is a legal requirement, it protects you and your vehicle. In this article, we will discuss the points of timely renewing your car insurance plan and how you can do it online.
Importance of Timely Car Insurance Renewal
Renewing your car insurance is more than a routine task as it is a significant measure you can take to stay financially and legally protected when driving your car in India. The following are some crucial reasons why you must renew your car insurance on time:
1. Legal Hassles
When you do not have a valid car insurance policy, driving your car can pose serious legal issues. You must have third-party car insurance to drive your vehicle legally. Nevertheless, buying third-party insurance does not imply lifetime coverage, as it usually expires within a year. In addition, if your vehicle causes damage to a third party or property, you may find yourself entangled in a lengthy legal dispute and facing significant financial hardship. Hence, you must renew it on time to avoid legal issues and pay hefty fines.
2. High Premium
When you fail to renew your car insurance policy in time, it can increase your premium amount. Upon renewing your insurance plan, the insurer will ask you whether the plan has expired or not, as it helps them determine the premium amount. Hence, if you timely renew your existing car insurance policy, enabling you to get insurance coverage by paying a lower premium amount. If you have lapsed the insurance renewal timeframe, you may have to pay a higher premium.
3. Zero Protection
A car insurance policy offers financial coverage for you and your car in case of a mishap. You can file a claim to receive financial coverage in case of an unfortunate accident. However, when your plan expires, the insurance company will not offer you financial coverage during an unprecedented accident. Hence, you must renew your car insurance on time to avoid financial obligations during an unfortunate car accident.
4. Inspection Prospect
When you try to renew the car insurance policy after a certain period, the insurance company will inspect your car before issuing you a new policy. In such a scenario, the insurance company will send a surveyor to inspect your vehicle and submit a report to the officials on the basis of inspection. The insurance will scrutinise the report and issue you a new policy if they are satisfied with the report, making the process time-consuming and inconvenient.
5. Loss of No Claim Bonus
Insurance companies, like ACKO Insurance, offer you a No Claim Bonus (NCB) reward as an incentive when you do not file a claim during the policy tenure. You can utilise the NCB discount when renewing your existing car insurance plan, as it provides a maximum of 50% discount if you have not filed any claim for 5 consecutive years. Nevertheless, if you do not renew your plan within 90 days of expiry, the insurance company will nullify the entire accumulated NCB discount.
How to Renew a Car Insurance Plan Online?
You can easily renew your car insurance plan on time by following these two modes:
● Online Mode
One of the easiest and most convenient ways of on-time car insurance renewal is through online mode. You can follow this simple guide to renew the plan in a few seconds:
Step 1: Visit the official website of your insurance provider and log in to your account
Step 2: Select the ‘Renewal’ option and choose the plan that aligns with your insurance requirements.
Step 3: Check the Insured Declared Value of the vehicle and make changes accordingly.
Step 4: After selecting the plan, you can make the payment via online mode.
Step 5: Once the payment is done, you will receive the policy details in your registered email address.
Please check the policy details to verify the information. If you notice any discrepancies, you can contact the insurance company and make changes accordingly.
● Offline Mode
In the offline mode of renewing your car insurance on time, you must visit the nearest branch of your insurance provider. In addition, you must carry the vehicle and the policy documents along with you during the visit. After that, you must request the executive to renew your policy, and they will initiate the process.
Final Words
Therefore, on-time car insurance renewal is mandatory to drive your vehicle legally in India and stay financially and legally protected. If your car insurance has expired and you have missed its renewal date, the insurance company offers you a 90-day grace period to renew the plan. Hence, you must not skip the renewal timeframe as it leads to financial and legal issues.
https://www.insurancedekho.com/car-insurance/news/importance-of-timely-renewal-of-car-insurance-policy.htm
https://www.iffcotokio.co.in/motor-insurance/car-insurance/importance-of-on-time-renewal-of-car-insurance#:~:text=This%20is%20basically%20to%20determine,be%20charged%20a%20higher%20premium.&text=Insurance%20companies%20give%20you%20a,an%20incentive%20for%20safe%20driving.
https://www.acko.com/two-wheeler-insurance/renew-expired-bike-insurance-online/#steps-to-renew-expired-bike-insurance-online
