Having a car insurance policy has become a necessity rather than an option to financially protect the car, the driver and third parties. According to Indian law, it is mandatory to have a valid insurance policy for every vehicle. Major insurance companies in India provide a yearly car insurance policy.
Whether it is a comprehensive or third-party insurance policy, it is important to renew the policy. If the policyholder fails to renew the policy on time, then the policyholder does not get any compensation for damage to the car or a third party. Continue reading the guide below to learn more about car insurance policy renewal.
Why Is It Important to Renew Car Insurance?
Car Insurance renewal ensures that the car is financially protected against theft, accidents and third-party liabilities. Below are the benefits of car insurance:
- Offers Coverage for Damages
Car insurance acts as a shield by providing financial coverage for losses caused by accidents, theft, or natural disasters. Moreover, it also provides protection against damage done to a third party.
- Provides Cashless Garage Options
Some insurance companies, such as Bajaj General Insurance, have a network of cashless garages to ensure your car receives cashless service at the time of need. For example, if your car gets damaged in an accident, the network garages fix it without requiring any direct payment.
- Prevents the Rise of Premium
Failing to renew your car insurance may lead to a rise in premium since you may have to buy a new insurance policy. Renewing the policy on time may help reduce the increasing cost of the insurance premium.
- No Claim Bonus Remains the Same
Several insurance companies provide a No Claim Bonus (NCB) as a reward for not making claims over the years. Non-renewal of the policy may lead to the risk of losing this bonus. Timely renewal of the policy maintains the NCB benefits.
Step-By-Step Process for Car Insurance Renewal
Car insurance renewal is a simple and hassle-free process. You can follow the following steps to renew your car insurance online:
Step 1: Log in to your insurer’s website.
Step 2: Provide the necessary details, such as your car’s registration number and the policy details.
Step 3: Select your preferred coverage, such as comprehensive or third-party and add the additional riders if needed.
Step 4: Check the final premium and make the payment using your preferred payment method, such as UPI, credit/ debit card, to complete the renewal process.
Step 5: After the renewal is successful, you will receive your renewed policy via mail.
You can also renew your car insurance offline by visiting the branch or contacting the agent of your insurance provider.
What Are Some Mistakes to Avoid While Renewing Car Insurance?
Car owners may sometimes make some mistakes that can lead to financial losses or claim rejections. Below are some mistakes that car owners can avoid for a hassle-free car insurance renewal:
- Waiting Till Expiry Date
Renewing your car insurance before the expiry date can save your car from being re-inspected by the insurance provider. Moreover, failing to renew your insurance may lead to the loss of the accumulated No-Claim-Bonus (NCB).
- Choosing the Incorrect Insured Declared Value (IDV)
It is important to choose the correct amount of IDV for your car. This is because a lower insured declared value may not provide enough coverage if the car is more damaged. Similarly, choosing a too-high IDV may lead to an unnecessary rise in the premium amount.
- Not Claiming NCB
NCB is the bonus provided by the insurance company after every claim-free year. By claiming the NCB, car insurers can get a good amount of discount on the calculated premium, which they can pay during the time of the policy renewal.
Final Thoughts
Renewing your car insurance policy offers a simple and efficient way to protect your vehicle from high risks. By maintaining your policy, whether third-party or comprehensive, you ensure legal compliance and enjoy peace of mind. Additionally, you can also customise your coverage with add-ons to meet your specific needs.