Car insurance is a contract between the insurer and the policyholder. The insurance company agrees to bear a fixed cost of expense towards damage or loss of an automobile because of an unforeseen situation. The insurance provider bears the fixed amount after the insured pays a decided cost known as premium. Car insurance acts as a defense line against any mishap that could cause damage to the vehicle.
Driving a car without a car insurance policy is a punishable offence in India as per the Motor Vehicles Act, 1988. Car insurance companies consider expired car insurance as invalid. Thus, the insurance company will not cover any claim against an accident if the insurance policy is expired.
Sometimes, insurance companies offer a grace period to pay the premium amount and renew the insurance policy after the due date. In case of an insurance lapse, without any further delay, you should immediately get in touch with your insurer and check on all the available options for car insurance renewal. Some insurance companies might allow renewing the policy, in case the insurance lapse is only of a few days. The other scenario is where the insurer might advise you to apply again for a fresh policy.
5 easy steps for Car Insurance renewal
Selecting the Insurer
Once you have decided your coverage, you can compare car insurance plans provided by your existing insurer and decide if are willing to continue with the same insurer or not. You can also search for an insurance company who provides the desired coverage but at a lesser cost than your current provider.
Opt for an insurance online as it is a convenient purchase method and provides hassle-free settlement for your insurance claim. You can renew your policy online within minutes online. However, make sure that the insurance company is certified by the Insurance Regulatory and Development Authority of India (IRDAI).
Review Your Coverage
It is not mandatory to continue with the same insurance coverage you had opted for a year ago. You can either increase or decrease the coverage based on your current needs and requirements.
While purchasing your Comprehensive policy, you can enhance your coverage by going for a suitable rider such as Zero Depreciation during car insurance renewal. This will slightly increase your car insurance premium but prove beneficial during claim settlement.
Don’t forget the NCB
Car insurance companies offer a No Claim Bonus (NCB) to policyholders who do not raise a claim during the policy period. Make sure to check if your insurer has included the NCB component in your car insurance quote. Note that NCB stays intact even if you choose to switch your insurance company.
Don’t Miss the Renewal Date
Complete your car insurance renewal in a matter of minutes online. Do not procrastinate, renew your car insurance before its expiry date. Your company will notify you before the expiration of your policy and you can also set reminders for the same.
Review the Policy Document
Verify the contents of the soft copy of your policy to ensure that all the details are in place. In case of any discrepancy about your car’s details or the policy’s coverage, you can get them revised by informing the insurance provider.