5 Reasons why you should renew your car insurance policy – Elets BFSI – Elets


As per the Motor Vehicle Act, one cannot drive on the roads of India without having a valid and active car insurance policy. Having at least third-party liability insurance is mandatory to be legally eligible to drive on the Indian roads. Having said that, the car insurance policies come with its validity and gets expired after a certain period (i.e. policy tenure).
It is highly necessary to get the car insurance plans renewed on time so as to ensure a stress-free drive. Also, driving with an expired car insurance policy is equal to not having an insurance plan.
To get more insight on this, we have highlighted the top five reasons why you should be renewing your car insurance and that too on time. Scroll down to know more about these reasons:
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Reason No 1: To enjoy continued coverage benefits of the plan
For any cover to be active and valid, it needs to be renewed on time. If the policy is nearing the expiry date, one must ensure to renew it before it to ensure that they get the necessary coverage and benefits of the plan. Also, missing on timely renewal may lead to discontinuity of benefits and limit the insured from uninterrupted coverage.
Moreover, having your car insured can save you from heavy financial losses that might arise during unprecedented accidents. It also saves one from any legal liabilities during third-party bodily injury or death.
Reason 2: Avoid discontinuity of No Claim Bonus
No Claim Bonus (NCB) is the benefit that the insured would receive on zero claims during the tenure of the policy. It comes as a reward for safe driving, and the bonus can be accumulated. Also, the value of NCB can increase for not making any claims for a continuous period of five years. However, if the insured fails to renew the policy on time, they can suffer from losing this accumulated benefit.
Reason 3: Avoid paying higher premiums
Any breaks during the period of the renewal of your car insurance policy might result in paying comparatively higher premium rates. Also, you might have to buy a new car insurance policy instead, and that might lead to higher rates as you won’t be eligible for any discounts, or even the insurance company might charge you higher for the expired plan history.
Reason 4: Easy switch to other insurers
This is another important benefit, especially for the insured’s who are not happy with the services of their current insurer or their current plan. The renewal period can be a good option for you to conveniently transition to another plan or insurer which offers better benefits than your current ones. You can compare the various plans offered by different insurers to find the ideal option for you. This comparison can be carried out online.
Reason 5: Save from hassled experience
Not renewing your car insurance policy on time can lead to paying penalties or rejection of claims. You might even have to look out for another plan or insurer due to irregular renewals or expired policy for a longer period. Hence, it is advisable to renew the policy on time to avoid such hassles.
Also Read: Three Ways Covid-19 Is Changing the Insurance Industry
Bottom Line
Now that you know the benefits of renewing your car insurance policy on time, it is highly recommended to renew on time in order to avoid any unpleasant surprises later. Renewing the policy on time also enables you to save money, time and effort. So, if you are planning to buy a new plan, you must definitely consider timely renewal in the future, and if you already have an existing plan and missed the renewal date, then rush and Renew Now! It’s better to do it early than be too late.
Views expressed in this article are the personal opinion of Rakesh Goyal, Director, Probus Insurance.
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