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July 2021

Insurance

Topic: How to Claim Insurance in Case of Car Is Damage Due to Floods

on by Hazel Calvin

Natural calamities such as cyclones, earthquakes, floods and hailstorms do not come with prior notice. Such situations are unpredictable and there is nothing you can do to control or avoid them. In the past few years, different parts of India witnessed major floods that caused serious damage to life and property. Talking specifically about car damage due to floods, having a comprehensive insurance policy for your car can help you manage the situation without any stress and save you a lot of time and money in getting the vehicle repaired. Comprehensive car insurance also covers theft and other natural calamities.

Claiming insurance for your flooded vehicle:

If your car was partially or fully submerged in water, it will mean major damages and a high cost for repairs. To claim insurance, you must:

Avoid starting the car right away

While knowing about the importance of car insurance is a must, you also need to be aware of the first thing to do if your vehicle gets damaged by a flood. You may be tempted to start your submerged car but do not make the mistake of doing so. It will cause more damage to the engine which may not be covered in the policy. So, it is best to let the car be and click photos of it. If you notice any other damage, take photos of that too.

Inform the insurer at the earliest

Floods can cause huge damages which mean the insurance company could be juggling many claims from all quarters. Hence, inform the company as soon as you can and send your car to the service centre immediately. You can contact the insurer by email or call them on the customer care numbers. You need to fill the claim form for car insurance online and you can attach photos if you want. You can also use their mobile app and do the needful. Do not delay the process because the longer you take, the likelihood of water damaging the car will increase and it could lead to long-term damage. Plus, anticipate the extra time the insurer might take to process the claim.

Steps to register an insurance claim:

  1. Call on the landline or toll-free number of the car insurance company.
  2. Share details to the insurer about your policy and where the car was parked at the time of floods.
  3. Now the company will provide a Claim Registration Number and you can use it as a reference number.
  4. You will be provided with a scheduled time to pick up the car.
  5. The insurance company will assign a surveyor who will assess the damages to the car. Once it is done, the service team at the garage will be consulted and you will be informed about the claim amount payable for the repair of the car. Additionally, you will also be informed about the money you will have to pay for the repairs if any.
  6. Once all the issues are cleared, sign on the claim approval form and keep a copy for the future.
  7. You will get to know when the car will be repaired and delivered to you.
  8. In a cashless claim, the insurance company will directly pay the garage service team. In case of reimbursement, you will have to make the payment and the insurance company will compensate you for the same.

Insurance companies have made it easier to file and settle claims. If you avail Reliance car insurance especially, you can expect a completely hassle-free process. Being aware of these steps can come in handy and will allow you to file the claim at the earliest. And, remember, never start the car if it is submerged in the water and renew your four-wheeler insurance on time to continue enjoying the extensive coverage.

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Loan

How to Get a Personal Loan When You Have Bad Credit

on by Hazel Calvin

A bad credit score should not hinder you from getting that personal loan to take care of an emergency or consolidate your debts.

 However, you have to put in a lot of work to qualify for these loans, especially if you don’t have a credit history.

Here are a few steps you should consider to get a personal loan with bad credit.

Improve Your Financial Health

If you’re not taking a loan to respond to an emergency, then begin by improving your credit score. This will enable you to afford the loan that you want.

Improve your creditworthiness by paying your bills on time. Ensure the balance on your credit cards is less than 30 percent.

After that, don’t apply for any new credit. The combination of these factors, ranging from on-time payment, no new credit to low credit utilization, will account for 75 percent of your credit score. You’ll not be at 100 percent yet, so you need to move to the next step.

Check Your Credit Score

Lenders have a minimum credit score requirement, so they can reject your application if you have a lower score than their minimum. Also, you’ll find lenders who see it as a business opportunity to offer you a bad credit loan. These bad credit loans come with a higher origination fee and interest rate.

You’re entitled to access one free credit report. So take advantage of that and check your credit report from AnnualCreditReport.com.

Although the report won’t include your credit score, you can still purchase it from the credit bureau or get it free from some financial institutions. If you find any error in your report, get it fixed to improve your creditworthiness.

Get Loan Pre-Qualification

Many personal loan lenders would want you to submit a prequalification before contacting a personal loan Montreal lender.

Prequalification allows the lenders to find out if you can qualify for a loan. They’ll also see if they can offer you a loan without hurting your credit. So take this as an advantage before you apply for a loan.

With prequalification, you can determine whether you qualify for a loan or not, so you know what to do. You can also compare different loan offers that are available online and from some banks.

Add a Co-Signer to Your Application

With a co-signer, you can easily qualify for a loan and get a lower interest rate loan. This is possible because a co-signer’s credit and income information are added to your application.

A co-signer must agree to pay the loan on your behalf if you default.

It’s important to discuss all your loan details and agreement with your co-signer. A co-signer should be able to understand their involvement in your loan terms before agreeing to co-sign.

Research the Available Lenders

As you do your research, try to compare lenders since not all lenders have the same borrowing requirements. Their rates and charges are also different. Compare many options available.

A bad credit lender will offer you an affordable rate. They also offer other important features such as credit-building tools, fat funding, and a mobile app to help you manage your loan payments.

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Credit

How to Contact Credit Card Customer Care

on by Hazel Calvin

Credit cards allow cardholders to avail of purchases with ease and efficiency. They operate by virtue of providing cardholders with an agreed-upon amount of money that can be spent at the card holder’s discretion. These funds are advanced and are then spent by the cardholder and are required to be repaid with an agreed-upon interest applicable on the same. Moreover, cardholders are required to pay certain fees associated with the maintenance of their card.

Contacting Credit Card Customer Care

While being a credit card holder can provide you with a greater degree of flexibility in your spending patterns, you might find yourself needing to contact your credit card customer care for a number of reasons. These could range from having issues remembering the PIN associated with your card to have lost your card and needing a replacement. Read on to understand how to contact SBI and RBL’s credit card customer care services.

Contacting RBL Credit Card Customer Care

The following RBL credit card customer care numbers can be used to reach out to RBL from your registered phone number.

  • Customer Care Number – +91 22 6232 7777
  • Customer Care Number – 1800 121 9050

Else, you can reach out via email to have your queries or issues addressed.

Email address – [email protected]

SuperCard holders are entitled to call on a number or email an account that’s been made available just for them.

For general queries pertaining to RBL Bank, you can reach out to the customer care number which is active on a 24*7 basis.

  • +91 22 6115 6300

Should you have any inquiries pertaining to your credit card, you can reach out via the following means.

Contacting SBI Credit Card Customer Care Number

The State Bank of India (or SBI) has grown significantly over the past decade and presently serves as a prominent multinational public sector bank.

In order to make a complaint or ask a question pertaining to your SBI credit card, you can reach out to any of the SBI Credit Card Customer Care numbers mentioned below.

  • TOLL-FREE – 1800 180 1290 – This is the toll-free number.
  • TOLL APPLICABLE – 1860 180 1290 – This number has a toll applicable.
  • CITYWIDE- 39 02 02 02 – You must add your local STD as the prefix.

When calling SBI’s 24×7 credit card customer care number specific to a city, having easy access to the facts mentioned below would be wise.

  • Credit card number
  • The date of expiry
  • Date of birth
  • Phone number registered with your credit card for an OTP
  • PIN associated with the card (4 digits)

Conclusion

Credit card customer care services are extremely helpful and should be taken advantage of. Queries, complaints, and general grievances can be appropriately dealt with. Head on over to Finserv MARKETS in order to enjoy the flexibility your credit card affords you.

References

https://www.bankbazaar.com/credit-card-customer-care-number.html

https://www.bankbazaar.com/sbi-credit-card-customer-care-number.html

https://www.bankbazaar.com/rbl-bank-credit-card-customer-care-number.html

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Investment

DEBT MUTUAL FUNDS VS FIXED DEPOSITS- WHAT MAKES FOR A BETTER CHOICE?

on by Hazel Calvin

Though Fixed deposits (FDs) are considered as traditional investment options, they still find a place in most Indian households. As per the reports of Reserve Bank of India (RBI) released on June 2020, around 53% of average Indian household’s financial assets are dedicated towards fixed deposits as on March 2020. Though mutual funds are also seemingly popular among retail investors, these investment options raise to popularity in the recent decades. As per the date released by AMFI (Association of Mutual Funds in India), the AUM (asset under management) of mutual funds in India have grown at CAGR (compounded annual growth returns) of around 17% in the last twenty years. So, which of the above two investment options make for a better choice? Let’s understand and explore in this article.

What is a mutual fund?

Mutual funds are financial vehicles that are professionally managed by mutual fund experts known as fund managers. A fund house or an AMC (asset management company) pools the funds of several investors and invest in different securities basis the investment objective of the fund. Examples of such securities include cash and cash equivalents, stocks, money market instruments, bonds, etc. These fund managers have in-depth knowledge and understanding of the markets. You can invest in mutual funds either via a systematic and regular mode of investment – SIP (systematic investment plan) or lumpsum mode of investment.

What is a fixed deposit?

Fixed deposits are financial instruments provided by financial intermediaries such as NBFCs (Non-Banking Financial Company) or banks that offers investors with a fixed rate of interests for a fixed duration. The government of India predetermines this interest rate every year. Hence, these are relatively safer investment options than mutual fund investments. In return, investors are not allowed to redeem the schemes before the maturity of the term. Unlike mutual fund investments, you cannot make an SIP investment in fixed deposits. You need to make a lumpsum investment to invest in fixed deposit schemes.

Mutual funds vs fixed deposit

Let’s understand the differences between fixed deposits and mutual funds by referring to the following table:

Parameter Fixed deposits Mutual funds
Interest rates Fixed Vary as they are market-linked
Investment objective To preserve wealth To generate wealth
Market conditions Returns are not dependent on market conditions Market conditions play a significant role to calculate mutual funds returns
Risk Relatively lower risk as returns are predetermined and fixed Relatively higher risk
Expenses FDs do not levy any additional costs to investors Mutual funds levy certain charges and fees
Tax Dependent of the investor’s income tax slab Tax on mutual funds are dependent on the type of mutual funds invested in and the holding period of the investment
Lock-in period 5 years Except ELSS funds that have a lock-in period of 3 years, mutual funds do not have lock-in period
Mode of investment Only lumpsum investment Either SIP (systematic investment plan) or lumpsum investment

Where should I invest?

The decision to invest in mutual funds or fixed deposit lies with an investor. You must check your financial objectives, investment duration, and risk profile before deciding the right investment option for you. That being said, if you’re looking to generate wealth, you are better off with mutual funds as they have the potential to generate significant returns when invested for a prolonged duration. Happy investing!

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Finance

Understanding Sharpe ratio and its importance while taking investment decisions

on by Hazel Calvin

Developed by Nobel laureate William Sharpe, the Sharpe ratio is used to understand the returns earned on an investment compared to its risk. Risks and returns have a direct relation – the higher the potential return, the greater the risk. Calculating Sharpe ratio is one of the easiest methods to measure the investment returns given the level of risk taken.

What is Sharpe ratio and why is it important?

Sharpe ratio in mutual funds helps investors to know about returns on their investments as against the risks taken to earn those returns. The ratio is useful to compare the risk-adjusted returns of different investments such as mutual funds, stock market, deposits, bonds, and other investment avenues. This ratio comprises three variables – expected return, standard deviation, and the risk-free rate of return.

Sharpe ratio is calculated with the below formula:

Sharpe ratio = (Rate of return on investment – Risk-free return) / Standard deviation of returns

For example, a fund named ABC gave a return of 15%, risk-free return was 5% and the risk factor (standard deviation) was 30%. Based on the formula above,

= (15%-5%) / 30%

= 10%/ 30%

= 0.33

Fund ABC generated 0.33 units of return for the risk undertaken.

Benefits of Sharpe ratio in the investment sector

Investors can use this equation to evaluate risks against returns and make smart investment choices. When it comes to mutual funds investment, a fund without any risk has a 0 Sharpe ratio. Similarly, if the ratio is higher, the returns will also be greater.

What is a good Sharpe ratio for a mutual fund?

Any Sharpe ratio of 3.0 or more is considered excellent by investors. A ratio above 2.0 is termed good, and a ratio greater than 1.0 is near to acceptable. A Sharpe ratio of less than 1 is said to be poor. 

Sharpe ratio and its importance for investors 

Along with any other ways to evaluate if the investment instrument of choice is good for your investment or not, you should also look at Sharpe ratio for the chosen instruments. Sharpe ratio is a popular risk measuring method that you could use to make smarter investment choices. If calculating Sharpe ratio, assessing the performance of securities seem a bit too complicated or time-consuming for you, you could also explore your investment options with a financial advisor to create a diverse portfolio based on your risk appetite and financial goals.

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Finance

What are the different types of debt funds?

on by Hazel Calvin

Mutual funds are broadly categorized as equity and debt funds. Equity funds are those mutual fund schemes which predominantly invest in equity and equity related instruments to generate wealth. They invest majority of their investible corpus in stocks of publicly listed companies and try to generate capital appreciation through active risk management.

A lot of people do not wish to invest in equity funds because of their high volatile nature. It is natural that people do not want to face losses by investing in a mutual fund scheme that carries a very high risk profile. In India, a majority of people depend on conventional investment avenues for their income goals. A sharp fall in interest rates over the years has left investors complaining about how these investment avenues no longer tend to their income needs. Such investors may consider shifting to debt mutual funds.

What is a debt mutual funds?

While equity schemes invest majority of their investible corpus in company stocks and other equity related instruments, a debt fund aims to generate capital appreciation by investing in debt securities and money market instruments. A debt fund may invest in bonds, corporate securities, debentures, derivatives, commercial papers, treasury bills, certificate of deposits and other debt securities.

Types of debt funds?

Market regulator SEBI (Securities and Exchange Board of India) has further categorized debt funds to allow retail investors to be able to take an informed investment decision. If you are planning on investing in debt funds to add diversification to your investment portfolio, you should know the different types of debt funds available.

Here are all the debt schemes currently offered to Indian investors –

Liquid funds – Liquid funds are open ended debt schemes which invest in debt securities that mature within 3 months.

Dynamic bond – A dynamic bond fund manager can switch between long-term to mid-term to short-term securities depending on the fund’s market performance.

Corporate bond fund – A corporate bond scheme predominantly invests in highest rated corporate bonds.

Ultra short duration fund – Ultra low duration funds invests in securities having the Macaulay duration between 3 months and 6 months.

Low duration fund – Low duration fund invests in debt securities such that the average maturity duration of the portfolio is between 6 months to 12 months.

Overnight fund – An overnight debt fund invests in debt securities that mature in just 24 hours.

Money market fund – A money market fund is an open ended debt scheme that invests in money market instruments such as high credit rating debt-based securities, commercial paper, treasury bills, etc.

Short duration fund – Short duration fund is an open ended short term debt scheme which invests in marketable securities with Macaulay duration between 1 year and 3 years.

Medium duration fund – Medium duration funds invests in debt and debt related instruments such that the average maturity of the portfolio is between 3 years and 4 years

Medium to long duration fund – A medium duration fund is an open ended debt scheme which invests in debt securities such that their Macaulay duration between 3 years and 4 years.

Long duration fund – A long duration fund is an open ended debt scheme whose investment portfolio has an average maturity of 7 to 10 years.

Gilt fund – A gilt fund is an open ended debt scheme that invests majority of its investible corpus in government backed securities.

Floater fund – A floater debt fund must invest a minimum of 65 per cent of its investible corpus in floating rate debt instruments.

Credit risk fund – A credit risk fund is an open ended debt scheme that invests a minimum of 65 per cent in corporate bonds of the total assets.

Banking and PSU fund – Of its total assets, a banking and PSU funds at least 80 percent in debt instruments of banks, public sector undertakings, and public financial institutions.

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Finance

Which mutual funds are best for short term?

on by Hazel Calvin

Mutual funds offer active risk management by investing in a diversified portfolio of securities. Fund managers are responsible for actively trading with the underlying securities of the mutual fund to ensure that the scheme is able to achieve its investment objective. Mutual funds hold the potential to offer capital appreciation over the long term. SEBI, the regulator of commodities and securities in India has further categorized mutual funds to allow retail investors to take an informed investment decision. Depending on their risk appetite, investment horizon and investment objective retail investors can decide which mutual fund scheme to invest in.

If you have an investment horizon of 6 to 12 months, you can consider investing in a short term fund or a liquid fund.

What is a short term fund?

A short term fund is an open ended debt scheme whose average portfolio maturity is anywhere between 1 to 3 years. This means that the underlying securities of a short term fund may mature any where between 1 to 3 years making it an ideal investment option for those with a short term investment horizon. Short term funds only invest in debt instruments of those companies who have a proven track record of repaying their loans. A short term fund manager invests in debt instruments of those companies that have a regular cash flow which justifies the companies’ ability to repay the borrowed sum.

What is a liquid fund?

If you wish to park your surplus money for a very short term and earn some interest rather than letting it sit ideal you can consider investing in a liquid fund. A liquid fund is an open ended debt which invests in debt instruments that have an average maturity period of 3 months. Liquid funds may be considered for building an emergency fund or a medical fund as one can instantly redeem their liquid fund units.

Benefits of short term funds

Short term funds may not offer returns as high as equity funds, but their main aim to provide stable returns with minimum investment risk. These funds try to offer capital protection to their investors are ideal for someone who wants to park their money for 12 to 18 months. Short term funds have delivered better returns than bank fixed deposits while ensuring that the investment risk is kept to minimum.

Benefits of liquid funds

Liquid funds can be used to park your surplus cash that is sitting ideal in the savings account. Why let your money sit idle when you can earn some interest on it by parking it in a liquid fund? As mentioned earlier, a liquid fund can also be utilized to build a medical fund. Thanks to its instant redemption facility, an investor can almost immediately receive money in their savings account after selling their liquid fund units. Liquid funds do not come with a lock-in period which make them ideal for those wanting to add liquidity to their investment portfolio.

If you have decided which mutual fund scheme to invest in to address your investment goals, you can consider starting a SIP in that fund. Systematic Investment Plan (SIP) is an investment process that allows retail investors to save and invest a fixed sum at regular intervals in a mutual fund scheme of their choice. Although most investors use SIP to automate their equity fund transactions, anyone can start a SIP to inculcate the discipline of regular investing. Investors can also refer to SIP calculator, a free online tool accessible to all investors.

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Loan

Banks vs NBFCs – Different Home Loan Variables Explained!

on by Hazel Calvin

Home loans are long term financial commitments that can span up to decades. Therefore, you must do adequate research on different housing loans to find the one suitable for you. While the home loan interest rate should be a vital determinant of your choice, you must also consider the services offered by a lender and the convenience of dealing with them. To do so, you might have to make one crucial choice – bank vs NBFCs. It could get confusing to pick one of the two. Though they may seem similar on the surface, there are differences between them, which affects your overall home loan experience.

If you are planning to avail a home loan, here is a small guide on banks vs NBFCs to help you make the right decision.

Banks

Banks in India are regulated by Reserve bank of India. Here are the advantages of availing a housing loan with a bank.

  • Overdraft facility

Banks provide you with an overdraft facility on a home loan. Your home loan is linked to a bank account where you can park your surplus funds. The funds over and above the EMI amount are considered as prepayment, reducing your interest outgo and total borrowing cost.

  • Transfer of interest rate changes

RBI has made it mandatory for the banks to follow the marginal cost of funds based lending rate (MCLR) regime for home loan interest rates. With this regime, banks usually transfer the change in interest rates faster to the borrowers.

However, the stringent home loan process and documentation of banks often leads to delay in home loan approval and disbursal for borrowers. Also, if you have a low credit score, you might not be able to avail a home loan with a bank.

NBFCs

National Housing Bank (NHB) governs non-banking financial companies or housing finance companies. NBFCs have to procure certificates from NHB to lend home loans.

  • Higher loan amount

Based on your eligibility, NBFCs usually sanction a higher loan amount. In addition, they include stamp duty and registration charges of the property in the home loan amount.

  • Easier processing

With a relaxed home loan process, you can get a home loan with an NBFC quickly. You might also get a home loan with a lower credit score from an NBFC. NBFCs also have a lesser documentation process. So, if you are unable to get a loan from a bank due to its stringent process, NBFCs can be of great help.

However, keep in mind that NBFCs usually charge higher interest rates.

Summary

Amidst the plethora of options available, it is better to weigh the features of the bank and NBFC while making the decision. While with NBFCs, you might get a higher loan amount, they usually charge higher interest rates. On the other hand, banks have a complicated documentation process and require a high credit score. Therefore, it would be best to assess your needs and then make a decision. If you have a low credit score but are in search of a high loan value, you can opt for a loan from NBFCs. However, if you wish to have an overdraft facility and low interest rates, banks could be a better option for a home loan.

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Credit

Laredo Credit Repair Pros

on by Hazel Calvin

3 Reasons Why Choose Credit Repair Services

It’s been said that credit is the lifeblood of any business these days. Your financial status is something you should be proud of, and if it says anything less than pristine, then there are ways to get back on your feet! Credit repair services offer a variety of programs to help make sure your finances are in order. If you’re struggling with bad credit, you know it can be difficult to find a car loan or even a job. Fortunately, there are credit repair services that can help! Credit repair is an important step in the process of rebuilding your financial life and these professionals will work hard to ensure everything goes as smoothly as possible for you.

Credit Repair Services: Why Choose Them?

  1. Reviewing Your Credit Reports for Errors or Omission

Maintaining good credit is important for many reasons. It can make things like buying a house, getting a car loan and generally managing your finances easier. What’s more, it can help you in other areas of life including jobs with background checks, apartments and even some insurance rates. But sometimes mistakes happen on your credit report that cause inaccuracies or errors which will cost you money when trying to get a loan or find an apartment rental – not to mention the hassle involved in correcting them! That is why Laredo Credit Repair Pros are available to review your report for any errors or omissions so you know exactly what might be holding back your progress towards achieving financial freedom. Learn more about our services at creditrepairlaredotx.com, our goal is to help you get back on track by removing any inaccuracies found in your reports with accuracy!

  1. Helping Negotiate with Creditors and Collectors

Whether you are having a difficult time paying your bills or you’re looking to take care of an old debt, credit repair services can help. These companies negotiate with creditors and collectors on behalf of their clients in order to reduce the amount owed, amend accounts, and remove derogatory information from credit reports. They offer a wide range of credit related services including bankruptcy assistance, identity theft protection, foreclosure prevention assistance and more.

  1. Remove Any Inaccurate Information from the File at No Cost to You  

Credit repair services can help you remove any inaccurate information from the file at no cost to you. These are popular among people who have had their credit damaged by a bankruptcy, foreclosure, or other serious event. They usually offer an initial consultation and then work with the individual to create a plan of action that is tailored to meet their needs.

I’m a huge believer that credit repair is an important part of life. I’ve seen many people who are in the wrong place, and it’s because they don’t have their credit report fixed up properly. So what does this mean? It means that you should be taking action now for your credit repair!

Every day people are faced with the decision to do something about their credit or not. The truth is that there are many ways to repair your credit, but you need time and patience. There is no one answer for everyone because of different circumstances, but a good place to start would be to take action now and choose the best credit repair services.

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CarInsurance

9 Reasons Why Renewing Your Car Insurance on Time Is Important

on by Hazel Calvin

As a car owner, you are proud of your possession. Your car is an integral part of your life as it helps you manage your travel needs. To secure your car, you must get the right car insurance policy. Then you can be at peace about funds needed should your car meet with an unfortunate event.

Car insurance policies are valid for one year and should be renewed timely. Only then policyholders can continue to receive coverage. Many insurance companies offer online renewal of car insurance. For instance, TATA AIG four wheeler insurance renewal can be completed easily by visiting their official website and filling out a few details.

However, many policyholders do not understand the importance of timely car policy renewal and face stressful consequences later. Read on to know why renewing your car insurance on time is essential.

Why should you renew the insurance for your car on time?

  1. It is important for the continuity of insurance policy benefits.

Purchasing insurance for a car is a legal imperative. However, renewing the plan on time is also equally important. First-time insurance buyers must know that the car insurance policy is not a one-time purchase. Renewing the policy on time ensures continuity of the benefits and coverage offered by the policy.

  1. You stay within the law.

Driving on Indian roads with an expired four-wheeler insurance plan is considered similar to driving around with no policy at all. If a traffic police officer stops you and asks for the car’s insurance, an expired policy will be considered a violation and attract a heavy fine and a black mark on your driving history. Always drive with a current insurance policy onboard the car.

  1. Renewal as early as possible, even within the expiry date.

It would be optimal if you renewed your insurance policy a few weeks before the expiry date. If you realize your policy has expired after you are asked by a police officer, the consequences may be unpleasant.

  1.  Missing the renewal can cause financial strain later.

Suppose your car is involved in an accident that causes damage to any third party or your own vehicle. Your insurance company will not pay if your policy is not up-to-date. In such a scenario, you’re left to pay all expenses out of your pocket.

  1. You will not be covered during the grace period.

Car insurance companies generally offer a grace period after expiry to help customers renew their plans. If you do not renew within the grace period, then coverage is not available in case your vehicle suffers any damage during the period.

  1. Missing on the renewal can lead to a car inspection.

If you renew the policy a while after expiry, the insurance company may want to inspect your vehicle before the car insurance renewal. The inspection is used to estimate the car’s condition and note any pre-existing issues with the car. Along with no coverage during the inspection period, your car insurance price will also rise after the inspection.

  1. You may lose your accumulated NCB.

The No-Claim Bonus is one of the best ways to lower the insurance premium amount. Many policyholders drive safely and follow road rules to maintain their NCB. If you don’t file a claim on the policy for five consecutive years, you may be looking at even a 50% discount on your premiums. However, if you fail to renew your plan on time, your accumulated NCB will be entirely reset.

  1. You may be asked to pay higher premiums.

The premium on late renewal of a policy that has expired is higher compared to one that is renewed on time.

  1. The repairs become stressful.

An expired insurance plan is of no help. You will have to handle third-party liabilities, repair bills, getting the car to a garage etc by yourself. This is in addition to the financial strain as you would not receive any funds under the policy.

Thus, if you’re a car insurance policyholder, staying on time with your insurance renewal will benefit you in the long run. To save yourself from unwanted stress, you can always opt for renewing the plan before its expiry date. You can also use your plan’s expiry date to purchase a more suitable and efficient plan.

Some Frequently Asked Queries

  1. What happens if car insurance is not renewed on time?

If you fail to renew your plan on time, you will lose your No-Claim Bonus discount. Generally, insurance companies provide a grace period to renew the plan. However, it may lead to an inspection of your vehicle, leading to a rise in the premium amount.

  1.      When should I renew my car insurance?

You must renew your car insurance anytime before the expiry date. It would be better if you get the renewal done a few weeks before the expiry date. It would save you from the stress of missing the expiry date due to last-minute developments.

  1. Do you need to renew car insurance every year?

The renewal frequency of your car insurance will depend on the tenure of your car insurance policy. If you’ve purchased a policy for one year, you will have to renew it annually. However, plans are available for longer durations.

  1.  Is it compulsory to renew vehicle insurance?

Yes, it is compulsory to renew vehicle insurance. With car insurance renewal, your vehicle will continue being protected. Along with this, you will get the No-Claim Bonus if you don’t file claims.

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