Reasons That Make It Imperative to Renew Your Car Insurance on Time

Cars are precious, be it for an automobile enthusiast, or one who seeks utility in it. Considering the utility and affection towards them, a car insurance is a necessity. But there is an attitude of indifference when it comes to car insurance India, in fact, it is a neglected far more than it should by many drivers. However, it needs to change for good. Here are some of the essential reasons that make it imperative to get your car insurance renewed on time:

  • Legal requirement

A car insurance is a legal requirement and cannot be skipped. During the registration process, your dealer recommends a policy, but it is you, who at the time of its renewal, must buy car insurance online or offline. The Motor Vehicles Act of 1988 has made it a law that needs to be complied. In addition to that, if the traffic officials inspect your vehicle documents and it is found that you do not possess a valid insurance certificate, it can attract hefty fines. The Motor Vehicles (Amendment) Act of 2019 has imposed stricter fines which even includes imprisonment for repeated offence.

  • Exposed to risks

As the old adage goes, there’s no use in crying over spilled milk, similarly, it there is no point on imagining how a car insurance policy comes handy during damages. The importance of a car insurance policy is only realised after an accident or damage to your car. Without a car insurance plan, your car is exposed to different risks. Some of those can be due to collision by another person, or some can be due to your fault too. In situations like natural disasters or man-made disasters, the damages suffered by the car are included in the policy scope if you have a comprehensive plan. The same is not included in cases where only third-party coverage is available. * Standard T&C Apply

  • Requirement of inspection

Another reason for you to not miss timely car insurance renewal is a mandatory requirement for inspection. When a fresh insurance policy is bought, the insurance company’s procedural requirements include a formal inspection of the car. This is done to identify any existing damages only after which coverage is offered. So, if you miss your renewal date, it is termed as a fresh policy purchase and hence an inspection will be required. This process is time consuming and can be tedious too. * Standard T&C Apply

  • Higher premiums & Loss of NCB benefits

The no-claim benefits of your car insurance policy are valid for a certain duration after the end of the policy coverage. Any renewal beyond such period reinstates the premium amount to its original. Thus, you do not get any benefit of no-claim bonus in your premium amount. While this duration is set at 90 days, you must keep in mind to not delay the insurance renewal beyond such period. If done, not only the premiums increase, but also benefit offered by NCB are not available. * Standard T&C Apply

Thus, keeping in mind the financial and legal implication of your delayed renewal, you must ensure a timely renewal of your car insurance policy. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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