Handy tips to get your car insurance renewed
Owning a car is no longer a far-fetched dream for the Indian population, thanks to better incomes and flexible finance options. That said, not many car owners pay much heed to the importance of car insurance. And if they do understand the need and buy a car insurance, majority of them fail to get a timely renewal done. Hence, here are some top reasons why you must get your car insurance renewal done on time.
Vitality of a Car Insurance Policy Renewal
More often than not, most of us falter at the time of car insurance renewal. It is always advised to get your car insurance renews in time and never delay or rethink the same. Why, you ask? Read on to know the reasons why renewal in time is important.
Legal Obligation- Motor Vehicles Act of 1988, has made it mandatory for all vehicle owners to have an active insurance cover when they’re driven on Indian roads. So, in order to avoid any legal hassles, you should have a valid car insurance cover at all times.
Financial Cover of Damages– Holding an insurance cover for your car helps you gain financial security against unforeseen situations, which might lead to bodily injury or third party or damages. Hence, a timely renewal keeps you from bearing financial burdens arising out of any mishap, at any time of the policy tenure.
Expiry- In all probability, most insurance companies are not in the favour of issuing grace periods to car owners. This implies that in case you skip renewing your car insurance on time, the entire policy becomes invalid. In such a case, the insurance company inspects the vehicle once again before you could get a new policy. This takes up valuable time and causes unnecessary inconvenience.
Saves Money- When you renew your car insurance policy, the concerned agent would inquire if the policy is active or expired. This is important to decide the premium amount on your new policy. If you renew your car insurance renewal on time, you would have to pay lower premiums. On the other hand, in case the previous term of your insurance policy shows accidents or rule violations, the insurance company may charge you a higher cost at the time of renewal. Renewing your comprehensive car insurance online helps you get lower premium rates from the insurer.
No Claim Bonus Benefit- There is a possibility to reduce your upcoming insurance premiums through the accumulated No Claim Bonus (NCB). NCB is granted to insured people who have made no any claims in the preceding policy year. However, a 90 day expiry on your car insurance means you are not eligible to get a NCB.
What Does A Car Insurance Policy Cover?
Usually, car insurance covers come in two categories.
This type of insurance policy takes place between two parties which includes the first party as the policyholder and the second party as the insurance company. A third party is the person who makes a claim for the damages caused by the first party. By third party, we mean the passengers inside a vehicle and/ or the pedestrians that are involved in the accident with the vehicle of the first party. A third party insurance policy covers for you any compensations that are incurred due to accidents caused by your vehicle including:
- Death or injury to pedestrians.
- Occupants of another vehicle.
- Any other outsiders.
This policy also covers passengers of private vehicles and pillion riders. As a car owner, you’re insured against death or injury caused inside your vehicle. In case of death or injury of the policyholder, there is unlimited liability coverage. Damage to third party’s property is also covered up to a certain extend in this type of insurance policy.
Third Party Legal Liability Cover- This cover protects the owner against legal liability arising from an accident causing any permanent injury or death as well as any damage to the property.
This form of insurance policy protects you against any loss or damage caused to the vehicle from natural and man-made calamities. A calamity can be categorised as ‘Man Made Calamities’ & ‘Natural Calamities’.
Man-Made Calamities: Burglary, housebreaking, theft, riot or strike, accident by external means, etc. are categorised under man made calamities. A comprehensive insurance policy also includes personal accident cover, which gives an accident cover for the driver of the vehicle while driving.
Natural Calamities: Natural calamities include explosion, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, fire, earthquake etc. Any kind of damage occurred due to natural calamities are also covered in comprehensive insurance plans.
As a car owner, it is important to make note that the fine print and communication with your insurance agent can help you grab great deals on your car insurance renewal. Also, you get the best prices if your car is in a good condition at the time of insurance compared to when the insurance expiry happens. So don’t forget to renew your car insurance cover today!