Why Is It Important To Renew Car Insurance? Know the Process

Car insurance is a term policy that needs to be renewed after every specific term. When a policy term ends, it is up for renewal. This term can be a 6-month, 12-month period, or a longer one depending on your insurance policy. Nowadays, buying and renewing car insurance online is a matter of minutes. You compare coverages with several insurance companies and choose the best. However, the cost of insurance will be unified with most of the insurance providers, whether it's online or offline.

Renewing a Car Insurance is Important

Here is why car insurance renewal is important: 

1. Laws and Regulations

You must be aware that an insurance policy, at least third-party insurance, is mandatory in India. It is necessary to renew it to follow the motor rules and regulations in India. However, it is not the only reason to renew a policy. From the point of view of laws, third-party car insurance is enough in India. But when it comes to a maximum coverage of claims, only a comprehensive policy works well. 

2. Effective Coverage 

In reality, the policy renewal is necessary for your coverage to remain in effect also. It is essential to renew your car insurance on time, whatever policy you choose, as there is no grace period in a car insurance policy. Therefore, in most cases, a car owner opts for automatic renewals to avoid the cancellation of the car insurance policy.

3. Avoid Fine and Imprisonment 

If you are driving with an expired insurance policy, you are at the risk of imprisonment besides a monetary fine. Under the Motor Vehicles (Amendment) Act 2019, the penalty of driving without an insurance policy is Rs. 2,000 and/or imprisonment of 3 months. 

4. No Financial Burden 

Suppose you met with an accident and another party has filed a claim against all the damages you made to his/her vehicle, property, or bodily injuries. In the absence of an insurance policy, you have to bear all losses and claims on your own. There may be a big hole in your pocket. Whereas with a car insurance policy, your service provider will pay all claims. They can cover the claims of up to 7.5 lakhs for you, which is a considerable amount. Thus, an insurance policy is a safeguard for your pocket. Do not forget to renew it. Check out the best motor insurance plan on Bajaj Finserv.

5. NCB (No Claim Bonus) Reset

Insurance companies credit no claim bonuses to your account. It is the bonus for not raising claims continuously for years. Once your insurance expires, they can stack up all your NCBs. These bonuses can offer you a discount as high as 50% on premium. 

   

Thus, keep renewing the policy for undisrupted coverage. It is your choice to stick to your existing insurance provider or switch to a new one.

The Car Insurance Renewal Process

Following are the steps to renew a car insurance policy:

1. You can choose a few insurance companies and get a quote. Compare car insurance policies and services with them if you are renewing the policy online. You can compare the pre-sale and post-sale services and coverage at reasonable prices. If you want to continue with the same insurance company, you can get a quote from it only.  

2. Select a policy from Third-party car insurance and a Comprehensive policy.

3. Fill the online form with your correct details.

4. You can select Add-ons for your insurance policy like Zero depreciation,  Roadside assistance, NCB protection, Engine protection, etc. 

5. Finally, make payment. 

The vehicle insurance renewal process is highly convenient on Bajaj Finserv website. Check it out.

The Bottom Line 

You need to renew your car policy, even if it is parked in the garage. Yes, legal compliance is a reason. The other reason is that an insurance policy can protect you from possible unforeseen natural calamities like earthquakes, floods, storms, etc. Thus, treat your policy as an asset, not a liability.