According to IRDAI (Insurance Regulatory Development Authority of India), more than 50% of vehicles run without or invalid insurance on the road. As it is mandatory by law to have car insurance, if you are among them, it is better to get your car insurance renewed on time. As per law, when you buy a new car, you are bound to buy the insurance immediately.
However, the issue arises when the time comes to renew it. Most of the car owners consider it just a formality which is wrong. First of all, you cannot drive your car legally without car insurance on Indian roads, and secondly, if you do not have car insurance, you may get in deep financial loss because of an accident or theft. Here are a few reasons you should Renew Your Car Insurance before it gets expired.
You will lose your NCB: NCB or No Claim Bonus is the discount that insurance companies offer on the premium amount when you do not file insurance claims during a given year. It increases every year, and you can avail up to 50 percent off on the premium amount. If your insurance policy expires and you do not renew it even after 90 days or expiration date, your NCB will no longer be valid. That means you will have to pay a higher premium at the time when you repurchase the car insurance.
Mandatory pre-examination: Generally, the insurance companies do not inspect the vehicle if you renew the policy on time and use an average Insured Declared Value of your car based on the model and make. However, if you do not renew the policy on time and let it lapse, the insurance company will not provide car insurance before inspecting the condition of the vehicle. Based on your car’s condition, the IDV or the current market value of your car may be much lesser than the average, which will result in lower sum assured.
Third-party liability: Without car insurance, there will be no coverage for third-party liability. That means if an accident is caused because of your fault, you will be liable to pay the losses to the other party. The damages may also include medical care charges in case of injuries.
No cover for damage or theft of your car: If you do not renew your car insurance on time, in case of an accident, you have to pay for the damages to your vehicle. In case of theft, the losses will be even more.
A common myth about policy renewal
There is a misconception about the car insurance policy that you can only renew it on or after the date of expiration. It is not true at all, and as per the regulations, you can renew the car insurance policy with your previous provider or a new one as early as 60 days before the renewal date. It is better to check for the offers, discounts, and other benefits from all the service providers and compare them before you renew it. You can only compare and renew with a stress-free mind if the policy has not already expired.
How to renew your car insurance?
Nowadays, you can renew your car insurance policy online, as well. There are many benefits of renewing car insurance online. Such as, you will pay a lower premium as there will no middleman or agent. The decision will be yours, and you can choose the type of comprehensive insurance policy with or without add-ons as per your requirement. Also, you can compare and renew the car insurance policy with the insurance company that you feel will be the best.
What to do if car insurance expires?
You should not wait in case your car insurance has already expired. You should immediately apply for the car insurance policy. A representative will contact you for pre-inspection. Some insurance companies also offer self-inspection of the car via a mobile app, which is a very user-friendly process. All you need to do is upload a set of photographs as suggested by the app, and the insurance company will process the application. Once the insurance policy is issued, you will get it in your email account.
Car insurance policy is mandatory by law. In case you do not renew it on time, you may lose some benefits like NCB. Also, you will be vulnerable to financial losses. Thus, it is important to renew your car insurance policy on time.