Your car is unquestionably a very important factor in your life. As such, you should pay attention to the car’s needs like timely repairs and maintenance. An important part of adhering to your car’s needs includes making sure your car insurance policy renewal happens on time.
Your car is unquestionably a very important factor in your life. As such, you should pay attention to the car’s needs like timely repairs and maintenance. This includes buying a car insurance policy and making sure its benefits continue to serve your needs, as long as you have ownership of the vehicle. An important part of adhering to your car’s needs includes making sure your car insurance policy renewal happens on time.
What is a Car Insurance Policy
Car insurance policy renewal is an extremely crucial aspect of car ownership since by law, it is mandatory for all vehicle owners to have a car insurance policy. There are two types of car insurance policy available in the market - third party insurance and comprehensive car insurance.
Third party car insurance policy provides assistance through financial means in case of any damages done to a third party person or property. Comprehensive car insurance policy offers a more inclusive protection. It offers cover for any damages done to the third party and self. It also protects you from liabilities like theft, man made disasters, falling objects and more.
Car Insurance Policy Renewal
You know how important it is to have a car insurance policy. It’s just as crucial to guarantee its continued usage.
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Legal inconveniences
Since having at least a third party car insurance policy is mandatory by law in India, failure to carry out your car insurance policy renewal will make you a legal offender the minute you drive on the roads of the country. This could mean high penalties if caught by the traffic police, since an expired car insurance polic is the same as having no car insurance according to the law. Along with this, in case you get into an accident, all the expenses for the upcoming legal battle will fall entirely on you.
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Zero protection
Your car insurance policy doesn’t just protect your vehicle, it also provides coverage to you against any financial burden due to an accident i.e. your vehicle causing injury to any third party, or it ends up damaging any third-party property. So, it makes sure you get freedom from all financial obligations. But if your car insurance policy renewal hasn’t taken place, the coverage also stops, making you financially vulnerable at such times.
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Re-inspection of car
When carrying out your car insurance policy renewal, then you also have to deal with re-inspection of your vehicle before a new policy can be made in your name. For this, an inspection agent would visit you to check out your vehicle. Based on the inspection, the agent will submit a report to the insurance company. After carefully scrutinizing the report, if everything seems up to code, a fresh policy is issued.
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Loss of NCB
No Claim Bonus or NCB is an important aspect of a car insurance policy. This benefit is provided as an incentive for safe driving. Basically, NCB rewards you for not having made a claim during your policy term. This is done via discounts given on your premium amount during your car insurance policy renewal. The best part about NCB is that the discount on premium can keep growing over the years. Your No Claim Bonus can increase till 50 percent for not making any claim for 5 years. However, this benefit can only be used if your car insurance policy renewal happens on time. Failure to do so results in negation of your entire accumulated NCB.
Also Read: How to Claim NCB on New Car? -
Higher premium
As mentioned above, carrying out car insurance policy renewal regularly could help in accumulating NCB and reducing your premium account. But that is not all. When your car insurance policy lapses, you have to undergo the entire process of buying insurance all over again. But this time, your application will be looked over more severely, since you have neglected to continue on with your car insurance policy.
Also Read: Renewing Car Insurance? Grab the Best Deals!
In order to make sure you carry out your car insurance policy renewal on time, head to Coverfox - one of India’s top insurance broking portals, where a team of insurance experts are on hand to take care of this process and advise you towards better insurance decisions.
