Renewing car insurance on time will ensure that you are protected against any sudden financial losses that may involve your car. Let’s look at why it is important to renew car insurance on time:
Irrespective of the types of insurance policy you buy, you will be covered against third-party liabilities. Buying a Third-party Liability Car Insurance is mandatory by law. Thus, driving without at least this type of car insurance will mean violating traffic rules and regulations.
A third-party car insurance policy will help you compensate the damages or injuries suffered by the third party due to an accident with your car. Compensation is calculated depending upon the damage suffered by the third party. If you opt for renewal of car insurance in time, your insurer will bear compensation else you will have to compensate the third party from your pocket.
Own damage i.e. the damage suffered by your car will be borne by your insurer if you have a comprehensive car insurance policy. Own damage is not covered under the third-party liability policy. In case your car is damaged in an accident while your policy is inactive, you will have to bear the entire cost of repairing it from your pocket. This will put a sudden stress on your finances.
Renewal of car insurance in time will ensure that the own damage component is looked after by your insurance company. The easiest way is online car insurance renewal as it the fastest method of renewing the policy.
The theft coverage is available with a comprehensive car insurance policy. It is most useful if your insured car is stolen and the police are not able to find it. Car theft is fairly common in our country and some areas are more susceptible to it.
If you do not renew your comprehensive car insurance policy in time, you will not have a theft cover. In such a situation, you will have to bear the entire loss of losing your car. But if you renew your policy, you will at least receive an amount equal to the IDV (Insured declared value). This is much better than losing the entire cost.
Plus, if you have a zero depreciation add-on, you will receive maximum amount without depreciation being taken into account.
Natural calamities like floods have started occurring frequently in India. If your car suffers damage due to a natural calamity, you can claim the compensation for this damage from your insurer. A comprehensive car insurance policy extends coverage against natural calamities.
If your car insurance policy is not renewed in time, you need to suffer the financial loss occurring due to the natural calamity. Going for online car insurance renewal will be the convenient choice.
Consider you did not renew your car insurance policy in time. During this time, political unrest erupted in your area. The activists took to violence and started destroying private property like cars or parked two-wheelers.
An active car insurance policy of the comprehensive type will extend a coverage in this situation under the coverage for man-made calamity. Thus, it is not only important that you renew your car insurance policy but also buy a comprehensive coverage.
According to the law enforced by the IRDAI (Insurance Regulatory and Development Authority of India), an insurer is supposed to give a discount on the premium if no claim is raised against the policy. The No Claim Bonus (NCB) is cumulative in nature and increases with every claim-free year. NCB can reach up to 50% discount on your car insurance premium. Thus, reducing the car insurance renewal cost to a great extent. Make sure to calculate car insurance premium.
There are two ways in which you could lose your NCB and the car insurance renewal cost will increase. One is when you raise a claim and other is when you do not do the renewal of car insurance policy on time. If there is a gap for around 90 days, you are likely to lose the NCB. The number of days depends on the rules and regulations of the insurer.