According to the Motor Vehicles Act of 1968, a vehicle owner must have their car insured to get coverage and compensation for any unexpected loss or damages. You can choose the car insurance type that caters to your interests and financial goals and enjoy the benefits without any hassle; however, purchasing car insurance is not enough.
You have to renew your car insurance periodically to avoid the expiry of the benefits and coverage. Car insurance renewal ensures that you are interested in continuing the insurance plan. It is generally advisable to renew your car insurance plan before the policy expires, however here are a few things that you must keep in mind about car insurance renewal –
- According to the Insurance Regulatory and Development Authority of India, long-term or multi-year insurance policies offered by insurance companies have a maximum period of 3 years.
- It is generally advisable to purchase long-term car insurance policies to avoid the hassles of annual renewal.
- For short-term car insurance policies, you must renew your insurance policy 15-25 days before it expires.
- Insurance companies offer a grace period in case you fail to renew your car insurance on time. The grace period secures the perks and NCB points you earn; however, you cannot make any insurance claim during the grace period.
- Car insurance renewal after the grace period might result in the loss of NCB points you earn apart from the hike in the insurance premium.
Options Available During Car Insurance Renewal Period
The car insurance renewal period is the time when you have the option to make changes to the car insurance policy. One can opt for any of the below-mentioned options during the renewal period –
- Renew the Existing Plan – If you are completely satisfied with your insurance company and current car insurance plan, you can renew your existing insurance policy with your current insurance provider and enjoy hassle-free services.
- Customise New Plan – Acko car insurance renewal procedure offers a customisation facility to you as per your needs and financial goals. For example, you can add or remove add-on perks, change the policy tenure, etc., applicable with the commencement of the new policy tenure.
- Switch Insurance Company – The renewal period allows you to explore the market and find an insurance company that offers maximum benefits at an affordable cost. You can renew your car insurance by switching the insurance company as well, however, you must complete the renewal procedure before the grace period expires to avoid hassles.
Importance of Car Insurance Renewal
Car insurance renewal offers security and coverage for the loss or damages caused to the vehicle or policyholder. Renewing car insurance on time is important for a variety of purposes –
- Complimentary repairs of damaged or lost parts
- Safeguarding against legal issues in accidental cases
- Hassle-free access to NCB points
- Seamless access to the perks and benefits
- Zero Penalties
What Happens if you Fail to Renew Car Insurance Policy on Time?
Check out the disadvantages you have to bear in case the insurance policy listed below –
- You will not be able to make any claim against the insured amount.
- The NCB points you earn during the policy tenure will be discarded.
- The vehicle owner will have to bear the expenses of any loss or damage caused to the vehicle.
- Driving a car without a valid insurance policy is a legal offence. In addition, the vehicle owner will have to pay a hefty penalty for it.
- Late renewal of the insurance policy might hike the premium amount.
Things to Consider During Car Insurance Renewal Period
The car insurance renewal period allows you to review the benefits and facilities covered by the insurance plan and customise it as per your personal needs and goals. If you are planning to make changes in your insurance plan or switch your insurance company, here are a few things that you must consider before making a decision –
- Insurance policies offer coverage for passengers as well. To enable this facility, you will have to pay a little extra premium for it. Avail of this facility only if you feel it’s a requirement.
- One can get premium discounts under the Acko car insurance renewal procedure on the installation of anti-theft devices, therefore, opt for an insurance plan that offers discounts on the installation of security devices in the car.
- Add-on benefits are designed to offer additional comfort. Unfortunately, this additional comfort comes with a price. Therefore, select the add-on benefits wisely to make your insurance plan affordable.
- Third-party insurance policy is mandatory as per the laws of the Motor Vehicle Act of 1968. Therefore, switch to a comprehensive insurance plan only when you feel it is required.
- Understand the policies of the insurance plan regarding the modifications in the car during the policy tenure.
FAQs
- Can I pay my insurance renewal premium in EMIs instead of lump-sum?
Generally, insurance companies do not offer EMI facilities on premium payments in India, however, you can ask the company executive about it.
- Can I enjoy NCB benefits in a third-party car insurance plan?
No, NCB points benefits can be earned only in a comprehensive car insurance plan.
- Can I complete my car insurance renewal procedure online?
Yes, insurance companies like Acko offer online insurance renewal procedures for seamless and fast services.
- Is online car insurance renewal cheaper than offline car insurance renewal?
The premium amount of any car insurance policy is dependent on the add-on benefits, policy type, etc. The renewal method does not influence the premium amount.
- Can I claim my car insurance during the grace period?
No, you cannot claim car insurance coverage during the grace period. However, the grace period offers the facility to secure NCB points after the policy expires.
