As you are already aware, car insurance policy needs to be renewed annually. It covers the policyholder’s accidental claims, any losses to the third party involved other than the vehicle and the policyholder, medical expenses and the spouses’ cover (if purchased). Renewing an insurance before due date is important, because its termination might lead to its expiry and in that case the policyholder shall have to buy a fresh insurance policy.
Buying a new policy might not only cost more, but also eliminates the benefits of getting your cost discounted by adding your previous year’s no-claim bonus (in case of not having claimed the last insurance). The insurance lasts up to the midnight of the due day, and can be renewed in a flash, without much bothering.
In case you are struck with the due date and do not want to lose your no-claim bonus, you can renew your insurance right from your office desk or bedroom. Renewing car insurance is comparatively easier than making a cup of tea; as the latter would require a thorough eye-keeping on the process.
One can always opt to have a stroll up to the insurance office and pay the renewal amount. It's quite simple and easy. Make sure you carry your old invoice for a few details to be cross checked. Though offline renewing requires visiting the insurer’s office, hence for those who aren’t tech savvies this is, no doubt, in the best of all interests. Additionally, a representative also assists you in all your doubts.
Yet another option is to renew your insurance online, where everything is just a click away. All you need to do is log in to your insurer’s website and select your insurance renewal. Proceed with the details and make the payment through your debit/credit card or NEFT and it’s done.
Myths about renewals
Sometimes policyholders are often confused by the myths of renewal processes that are bound to hit them by their friends or neighbors. Here is a simple clarification about various myths that linger alongside the due-date:
Often people remain under the impression that an online payment might not get accepted by their insurer, and fearing this they decide to renew their insurance offline, which often gets delayed and sometimes missed too- resulting to a hefty loss.
Online renewal is unsecured
Another most common misapprehension is that an online renewal is unsecured, which also results in delaying the process and skipping the due date. However, there is no such fear associated with the online renewal of the insurance; rather it is most secure and instant.
Phobia of documentation
Some believe that perhaps a list of various documents might be needed to proceed with the renewal, and amidst their busy schedule they refrain from either searching for their documents or checking the site of their insurer for renewal options. It only disappoints them when they get to know after the expiry of their due date that all that was needed for renewal was their policy number, and seldom a copy of the insurance.
What you miss when you fail to renew
There are various things that one is bound to miss, when he skips his renewal’s due date. As the date is missed, the insurance expires and changes to a fresh insurance. This results to a higher cost of renewal and a sudden unexpected dig at the savings.
There is also no chance of claiming the no claim bonus, which is an annual bonus on the year's premium amount awarded for not claiming the previous year’s insurance claim. It is bound to expire with the passage of due date.
Thus it is in the best of interests to not fall prey to eavesdropped rumors and renew the insurance timely, the clock tick-tocks till the stroke of midnight.