Insurance is critical in ensuring adequate financial support in the time of need. Depending on the type of your policy, car insurance covers you against third-party liabilities and own damage. This financial assistance and related services offer great relief during desperate times. A renewing car insurance policy is valid only for a specific period, usually one year. To continue enjoying coverage and benefits, you must renew car insurance on time. In case you forget to do that and your policy expires, renew expired car insurance at the earliest to save yourself from losses—big and small.
There are mainly two types of car insurance—third-party and comprehensive. Third-party insurance covers third-party liabilities only. Meanwhile, comprehensive insurance covers third-party liabilities and own damage as well.
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Benefits of Car Insurance
Comprehensive car insurance covers damage due to accidents, natural and manmade calamities, fire accidents, and theft. The coverage is based on the terms and conditions mentioned in the policy document. If you do not renew expired car insurance on time, you will lose coverage and become vulnerable to several monetary losses. Here are some major benefits of having car insurance.
Covers damage to the insured car
A robust car insurance plan covers the repair costs in case the insured vehicle is damaged in a mishap. It could be damaged due to an accident, fire, or self-ignition. Car insurance also covers damage caused when the car was in transit by rail, air or road.
Comprehensive car insurance includes personal accident cover, death cover, and protection against permanent disability cover with a predetermined amount, fixed as per the company’s policy. Renew car insurance on time to enjoy uninterrupted benefits.
This is the mandatory feature of any car insurance. Both third-party and comprehensive insurance cover third-party liabilities. If a third-party person is injured or their property is damaged due to an accident involving your insured car, the expenses will be borne by your insurer. Renew car insurance to keep it valid and it will protect you against legal liabilities such as in case of the death of a third party.
No Claim Bonus
The most important advantage of the renewing car insurance policy is the No Claim Bonus. The insurer rewards you with an NCB discount when you renew car insurance on time. To be eligible for this discount, avoid making an unnecessary or small claim during the policy period. This is a major advantage when you renew car insurance on time.
Factors to Consider When Choosing Car Insurance
Either buy or renew car insurance, but do not do either without considering the following factors:
1. Hassle-free process
The entire process of buying and renewing car insurance should be hassle-free and quick. Amongst the various policies available, choose a policy with a quick and easy purchase policy.
2. Customer support
Customer support is the next vital step when choosing a car insurance policy and company. A good, soft-spoken, reliable staff helps navigate the hassle of buying an insurance policy.
Types of Car Insurance Coverage
There are three types of car insurance coverage:
It covers the vehicle in the case of accidents only. It includes repair expenses.
Personal Injury Coverage
It covers the owner’s medical bills and hospitalization charges in case of an accident.
Uninsured Motorist Protection
If the insured vehicle is hit by an uninsured car or third- party driver refuses to pay for the expense of the damage caused to your vehicle, then this type of policy comes in handy.
H2- Why You Should Renew Car Insurance on Time
An expired policy is as good as not having a policy. You must renew expired car insurance when you can or you will have to buy a new policy altogether. Also, to enjoy continuous coverage benefits, renew car insurance before it expires. Here are some benefits of timely car insurance renewal:
Dodge legal liabilities
Renew car insurance to protect yourself against legal penalties. In India, third-party insurance is mandatory for all vehicle owners. If you are caught driving your car without one, you will have to pay a hefty fine and/or face imprisonment depending on the situation. Failure to renew car insurance leads to the policy’s expiry, which necessitates you to buy a new one. Purchasing a policy takes more time and your car remains unprotected for the period. Hence, renew expired car insurance at the earliest to stay safe.
To avoid penalties
Sometimes, you may forget to pay your bills such as utility and credit card bills. The delay leads to additional charges called a penalty. In the same way, if you do not renew car insurance on time, you will have to pay extra to renew the policy. Remember, not all insurance companies offer a grace period to renew expired car insurance. Also, once your policy expires, insurance companies may ask you for an inspection of your vehicle before issuing a new policy.
To continue with the insurance provider
There are so many fishes in the ocean. Likewise, there are several car insurance providers in the Indian market. Some policyholders may not be satisfied with the services of their current insurance provider and may want to make a switch. On the contrary, if you have had a good experience with your insurance provider and want to stick with them, then you must renew car insurance on time to continue enjoying the benefits.
Renewal is better than buying a new policy
If your existing plan offers satisfying coverage and the insurance company has a smooth claiming process, then it is better to renew car insurance. Buying a new policy is time-consuming and involves more procedures than the renewal process. Besides, your car remains unprotected for the period between the old policy expiry and the new policy purchase. It also makes you vulnerable to fines and penalties.
To restore the No Claim Bonus
No Claim Bonus is a reward given to you by your insurance provider for not raising a single claim during the policy period. It is given as a discount on the premium amount of the own damage component of your policy when you renew car insurance. The reward starts with 20% for the first claim-free term. The discount percent grows every consecutive claim-free year by 10% and can accumulate up to 50% over five years. You are eligible for NCB only when you renew car insurance within the grace period or before the expiry. If the policy expires, you cannot ask for an NCB discount when you renew expired car insurance even if with the same insurance provider.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
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