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?
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
- 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.
- 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.
- 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.
- 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.