A car is not just an asset, but a prized possession for its owner. You might have made every effort to protect it from mishaps, and secured yourself with a car insurance policy. However, it is vital to note that renewing your policy every year ensures that you remain protected. Non-renewal of motor insurance can attract a fine of Rs. 2000 or imprisonment of up to 3 months. Nowadays, the entire process has become quite seamless and can be done online as well. In this article, we take a look at the steps you should follow to renew your car insurance policy.
What Is Car Insurance Renewal?
Car insurance renewal is the process of extending or renewing your existing car insurance policy for another term, typically for another year. The process involves reviewing your current policy, assessing any changes in your circumstances or coverage needs, and then choosing to either continue with the same insurance provider or switching to a different one.
Usually, when your car insurance policy is due for renewal, your current insurance provider will notify you in advance, informing you of the upcoming renewal date and any changes in premium or coverage. If you are satisfied with the existing terms, you can simply pay the renewal premium to continue the coverage for another term.
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Why Is Car Insurance Renewal Required?
In short, car insurance renewal is essential for maintaining legal compliance, continuous coverage, and ensuring that your insurance policy remains up-to-date. Here are some reasons why you should renew your licence on time:
- Ensures Continued Coverage
The only way to ensure continued coverage for your car is by renewing your car insurance policy on time. If you forget to renew, then your insurance coverage will break and your motor insurance company will not be legally liable to cover any financial liabilities arising out of your car.
- To Abide by the Motor Laws
As per the Motor Laws of India, every vehicle must be covered under a valid car insurance policy with a minimum of third party cover. This means your car should remain covered under insurance at all times as long as it is used on public roads.
- Prevents Financial Liability
If you fail to renew your car insurance policy, leading to its expiry, your motor insurer will have no legal compulsion to pay for any financial liabilities arising out of your car. As a result, you will be forced to pay for the damages caused or sustained by your car out of your own pockets. The situation can get extremely distressing, especially in monetary terms, if your car’s accident causes injuries to a third party, or results in his/her death.
- No Claim Bonus Remains Intact
No Claim Bonus is a reward granted by motor insurance companies to car owners for not raising any car insurance claim in the policy year. If a single claim is not raised during a policy year, your insurance company will grant you a discount on renewal premium or a No Claim Bonus (NCB).
- Ensures Hassle-Free Renewal
When you renew your car insurance policy on time, your vehicle is not subject to inspection and the entire process is hassle-free. However, if you fail to renew the policy on time, you are considered a careless car owner by the insurance company. So, when you try to renew your car insurance policy after a gap, the insurer might inspect your car.
- Prevents Increase in Premium
A break in your car insurance policy may lead to a hike in your insurance premium. This happens because you will have to buy insurance for your car from scratch and it may lead to quite expensive policies. Moreover, the insurance company will hike your premium as soon as they come to know of your expired policy, as you will be considered a careless car owner.
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How to Renew the Car Insurance Policy?
Your car insurance can be renewed following these simple steps:
- Research about car insurance policies and choose your insurance company. Choose a company that offers excellent pre-sale as well as post-sale services.
- Once you choose the company, log onto their website and research and find the relevant car insurance product.
- Now enter the details on the desired type of policy for your online car insurance renewal. You will come across a simple form where you need to feed the details for car insurance renewal.
- Select add-ons or covers to extend the scope of your car insurance policy, in case you have opted for a comprehensive car insurance policy. You can claim add-ons such as zero depreciation, roadside assistance, return to invoice, engine protection and NCB protection, the details to which would be provided in the company’s website.
- Once you are set with the policy and add-ons, you can proceed with the payment. Once you make the payment, the insurer will send you your renewed policy through email.
Benefits of Car Insurance Renewal
Since car insurance policies are valid for a limited period, they need to be renewed before their expiry date. Here are some of the major benefits associated with car insurance renewal.
- Third Party Coverage
In the event of an unfortunate accident that involves other individuals or properties, your renewed insurance will come in handy. It will take care of any expenses arising out of the accident and handle the legal obligations as well. This includes damages to properties or buildings, and injuries leading to disability or the death of an individual. In case of death, the ownership of the car of the deceased person is transferred to his/her heir, as well as the car insurance policy.
- Comprehensive Coverage
With car insurance renewal of your comprehensive cover, you can continue with your car’s coverage against calamities such as landslide, earthquake, flood, cyclone etc. On the other hand, man-made tragedies like theft, vandalism, burglary, riots etc. will also be covered.
- No Claim Bonus (NCB)
If you do not raise a single claim across the policy period, you will be eligible for a NCB. It is a discount on insurance premium which can be availed during policy renewal. The discount starts from 20% and goes up all the way to 50% for the fifth consecutive no claim year.
- Add-ons
In case you are not thoroughly happy with your current policy and want something more, you can opt for riders to enhance your policy coverage,uring your policy renewal. Depending on the insurer you choose, you get access to riders/ add-ons such as zero-depreciation cover, engine cover, cover for accessories and so on.
- Car Insurance Online
During renewal, you can opt for car insurance online, which is much quicker and an affordable option. Visit the website of a digital insurer and get a quote by entering some essential details. If you are happy with the policy, you can purchase the policy within minutes.
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Can Car Insurance Provider Be Changed During Car Insurance Renewal?
Yes, you have the option to opt for a different insurer while you renew your car insurance online. Usually, your first car insurance policy is purchased from the car dealer itself. That time, you would not give much thought to the insurer or the coverage.
The current insurer can be changed by looking for a new car insurance company and buying or renewing a car insurance policy from the new insurer. You must go through a basic research while selecting the new insurer and then buy a new policy to avoid a bad experience.
Is A Car Insurance Renewal Required While Buying A Used Car?
Yes, car insurance renewal is required for a used car, just as it is required for a new car. Whether the car is used or new, having a valid renewed car insurance is typically a legal requirement for driving on public roads in India.
Additionally, renewing your car insurance policy for a used car provides you with the opportunity to review your coverage, assess any changes in your circumstances, and make adjustments to your policy if needed. It’s important to keep your policy up-to-date to ensure that you are adequately protected against unforeseen events such as accidents, theft or damage to your vehicle.
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Summary
Car Insurance Renewal is vital and keeps you free of worries while driving on Indian roads. It’s essential for maintaining legal compliance, continuous coverage, and ensuring that your insurance policy remains suitable for your needs as a driver. If you’re caught driving with expired car insurance, you will land yourself in financial and legal trouble.
To renew your car insurance policy, review your current coverage, assess any changes in your circumstances or insurance needs, and decide to either continue with your existing insurer or switch to a different one if desired. By renewing your car insurance policy, you are adequately protected against unforeseen events in the future, and you abide by the legal requirements of driving on public roads.
FAQs About Car Insurance Renewal
Q: Can I renew my car insurance policy online?
A: Yes, you can easily renew your car insurance policy online. Also, you can get a no claim bonus or NCB in case you have had a claim free year when you renew your policy on time.
Q: Why do I need to renew my car insurance?
A: Renewing your car insurance policy is essential for maintaining legal compliance, continuous coverage, and ensuring that you are adequately protected against unforeseen events while driving.
Q: Can car insurance providers be changed upon renewal?
A: Yes, you can look at new insurance providers to buy or renew your current policy. You have the freedom to review, look at different policies to make sure you are choosing the right option.
Q: Is car insurance renewal needed for a used car?
A: Whether it is a new or a used car, you need to renew your car insurance to ensure you are within the legal requirements to drive your vehicle on Indian roads. Failure to do so results in hefty payments or imprisonment for a stated period of time.
