Here are 6 reasons why you must renew your car insurance policy on time:
Ensures Continued Coverage:- A car insurance policy is required to protect your vehicle financially. It also gives other benefits to the insured car, including a No Claim Bonus, cashless repair facility, zero depreciation protection, and so on. However, as long as your policy is active, car insurance coverage will be provided to your vehicle. Furthermore, to qualify for benefits such as the No Claim Bonus, you must maintain continuous and uninterrupted coverage throughout time. The only way to ensure that your automobile is covered in the future is to renew your car insurance policy on time. If you fail to renew your car insurance policy before it expires, your coverage will lapse, and your motor insurance company will be legally obligated to cover any financial liabilities arising out of your vehicle.
To Abide by the Motor Laws:- According to the motor laws of India, every car must be protected by a legitimate car insurance policy that provides at least third-party coverage. This means that as long as your car is driven on public roads, it should be protected by insurance. Your car insurance coverage will end if you do not renew your policy on time. In India, driving an uninsured vehicle is illegal. You would be breaking the country's traffic laws if you drive your car with an expired insurance policy. If you are caught by the traffic police, you will be fined severely and/or sentenced to up to 3 months in jail. Driving an uninsured car currently carries a fine of Rs 2000 for the first offense and Rs 4000 for the second.
No Claim Bonus Remains Intact:- A No Claim Bonus is a reward given by motor insurance providers to drivers who have not filed a claim in the preceding policy year. Your insurance provider will give you a discount on your renewal price or a No Claim Bonus (NCB) if you do not file a single claim throughout the policy year. NCB can be saved up. The minimum NCB awarded to a policyholder is 20%, and it can be accumulated to reach 50%. You must have had no car insurance claims for the previous 5 policy years to receive a 50% NCB. However, if you do not renew your car insurance policy for more than 90 days after it expires, you may lose your earned NCB. Your NCB will be preserved for up to 90 days after your previous insurance expires. However, if you do not renew your policy within this time, you will lose your collected NCB.
Prevents Financial Liability:- Any loss or damage to your car is covered by your motor insurer if you have a car insurance policy. Whether your car has been damaged or has caused damage or injury to a third party, your insurance is responsible for the financial liability that results. However, if you do not renew your car insurance coverage before it expires, your motor insurer will not be legally responsible to cover any financial liabilities originating from your vehicle. Your insurer will not cover any loss or damage caused by your car, even if it occurs during the grace period. As a result, you'll have to pay for the damages your vehicle suffers out of your own pocket. If you injure a third party and cause his or her death, the situation can become financially stressful. In this situation, you may be legally obligated to pay the victim's family compensation, which can range from a few lakhs to a few crores, without any financial assistance from your insurer.
Prevents Increase in Premium:- As you may be aware, a lapse in your car insurance policy might result in an increase in your insurance premium rate. This occurs because you will have to get car insurance from the ground up, which may result in costly plans. Furthermore, as soon as the insurance provider learns of your expired policy, the cost of the premium will increase because you will be regarded as a careless driver. As if that weren't bad enough, you'll also lose your collected NCB, which could have helped you save money on car insurance if you had renewed your policy on time.
Ensures Hassle-Free Renewal:- Your vehicle is not subject to inspection when you renew your car insurance policy on time, and the entire process is simple. However, if you fail to renew your coverage on time, the insurance provider would consider you a reckless driver. As a result, if you want to renew your motor insurance after a period of time, the insurer may feel compelled to inspect your vehicle. An inspection of your vehicle may cause you unnecessary hassle. Furthermore, it may result in the detection of specific defects or normal wear and tear on your vehicle. This may result in a decrease in your car's Insured Declared Value (IDV) or an increase in your premium.
Summing It Up
It is critical to renew your car insurance on time for a variety of reasons. Your policy's expiration will not only cause you unnecessary stress, but it may also result in a higher premium. Furthermore, if you injure a third party, the compensation amount can eat up your savings. Hence, always remember to renew your car insurance policy on time, and set up reminders so you don't forget when your coverage expires.
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