Seven Significant Advantages Of Renewing Your Car Insurance
Buying a motor car insurance policy is important for two reasons. First, the Motor Vehicles Act has made it mandatory for all vehicles to have insurance in India. Failure to do so can attract fines and also include imprisonment of the owner-driver. However, the mandate is about third-party liability insurance for cars only. While these plans cover all third-party liabilities arising from an accident involving your car, it does not cover damages to your car. Hence, many people opt for a comprehensive car insurance policy.
The second reason why you should buy a car insurance policy (comprehensive) is that it helps you easily manage the costs of repair and any third-party liabilities.
Car insurance policies have a fixed validity term. The insurer charges a premium to offer coverage for the said term. Policyholders are required to renew car insurance policies on or before the last date of the said term. Failure to do so can result in a lapsed or expired policy.
This article will look at seven significant advantages of ensuring car insurance renewal.
1. Third-party liability protection
Failing to renew your car insurance policy can result in a lapsed policy. Hence, it is no longer active, and the insurer will not offer any coverage. During this period, if your car causes an accident that damages third-party property, you will have to bear the expenses out of your pocket. To keep the policy active and the coverage valid, it is essential to ensure timely car policy renewal.
2. Own damage protection
If you have purchased a comprehensive car insurance plan, you get coverage for damage to your car due to an accident/mishap, theft, fire, natural calamities, or man-made disasters. However, this coverage is no longer valid if you don’t renew it on time. Hence, your vehicle is exposed to a range of risks. To avoid them, make sure you don’t miss the date for the insurance policy renewal for your car.
3. Changing the policy and/or insurer
If you are unhappy with your existing insurer, you can look for a new one while renewing your policy. You can also change the scope and extent of the coverage based on your evolving needs during this period.
4. NCB discount
If you have not filed a claim during the policy term, you are eligible for a discount on the premium when you renew your policy. This is a progressive discount that increases with every consecutive year that you don’t file any claim.
5. Changing add-on covers
If there has been a change in how you use your car, your add-on cover requirements will also change. Renewal is the best time to reassess the coverage of the policy and take a detailed look at the add-on covers purchased. You can add/remove add-ons based on your changing needs.
6. Peace of mind
When you renew your comprehensive car insurance policy, you are assured of financial protection due to an accident/collision, regardless of who was at fault. This helps you enjoy driving without worrying about managing emergencies.
7. Online car insurance renewal
Most insurers offer four-wheeler insurance renewal online to help policyholders renew their policies from the comfort of their homes or offices. It is also easy to compare insurers and plans. You can use the free online car insurance calculator to determine the premium amount before paying the premium.
Remember, driving your car in India without an active car insurance policy is illegal. Therefore, ensure you renew your policy on or before the expiry date. Many insurers offer a grace period to help car owners keep their NCB benefits and renew their policies. Ensure that you complete the renewal process within this period. Good Luck!