Five Reasons to Renew Car Insurance on Time

You must’ve heard the saying, “All good things come to an end.” Well, it holds true for your car insurance as well. While insurance offers peace of mind, protecting you from unforeseen accidental and non-accidental damages on the road, its coverage is only valid for a limited period. Luckily, you can always renew car insurance for continued protection.

The benefits of on-time car insurance renewal go beyond extended coverage periods. It’s an essential requirement to remain compliant with the country’s traffic regulations, and it can help you get discounts on premiums. So, join us as we list the top five reasons to renew your car insurance.

Benefits of On-Time Car Insurance Renewal 

Whether you have comprehensive coverage or third-party car insurance, timely renewal has many advantages. Let’s look at some reasons why you must renew your insurance policy without delay:

1. Avoid Legal Issues

Timely car insurance renewal in India is necessary for compliance under Section 146 of the Motor Vehicle Act 1988. The section states that a person can’t drive on the road without valid insurance. 

Driving your car with expired insurance is a clear violation of Section 146. If caught, you’ll be liable to pay a fine of Rs 2000 out of your pocket. Repeated violations attract even higher fines, including three months of imprisonment.

2. Continued Protection

Once your policy expires, you’ll no longer be covered against any damages. For instance, if you don’t renew your third-party insurance, you’ll bear the financial costs of any third-party liabilities arising in case of an accident. 

Similarly, if your own damage cover or comprehensive plan has expired, you’ll have to pay the repair cost out of your pocket. So, an expired car insurance renewal is necessary if you want your insurance provider to continue offering protection against damages and financial liabilities. 

3. Hassle-free Application Process

If you prefer convenience, you must promptly renew your car insurance. After your plan expires, you’ll have to purchase a new policy. That means redoing the entire paperwork and KYC process from the start. 

On the contrary, you can renew your existing car insurance online in minutes. You’ll simply need to log into your insurer’s portal or mobile app, select your car insurance, select the option to renew your insurance and make the payment. 

4. Lower Premium

Talking of payment, renewing your existing car insurance policy is cheaper than buying a completely new one. Insurers are always willing to extend discounts and loyalty perks to their existing customers, allowing for more affordable insurance renewal.

Moreover, you can revise your policy at the time of renewal. For instance, you can lower the coverage amount to align with your car’s current market value or remove add-ons you no longer need. This significantly reduces your premium when renewing your insurance. 

5. No-Claim Bonus

No-Claim Bonus (NCB) is the bonus you get for every year you don’t make a claim. It can accumulate over time, and you can redeem it as a discount on the premium during renewal. This discount can be up to 50% if you don’t raise a claim for five years in a row. 

However, it is important to note that you must renew your car insurance within 30 to 90 days and should not have made a claim to avail NCB. Otherwise, your NCB will be reset, and you’ll have to pay the entire premium amount. 

What Is the Grace Period to Renew Car Insurance?

To enjoy the continued protection and other benefits mentioned above, you must renew your car insurance before it expires. However, if your plan has expired before you could renew it, there’s no need to worry. 

Insurance companies generally offer a grace period for renewal of around 30 to 90 after the expiration. You can renew your existing insurance within the grace period to enjoy lower premiums, NCB discounts, and an overall seamless renewal process. 

Note: Car insurance renewal’s grace period varies depending on the insurer, so always check with your provider.

Key Takeaways

While car insurance renewal may be mandatory under the country’s motor laws, it’s necessary for you to receive continued protection against own and third-party damages. Moreover, it’s also an opportunity to modify your plan and remove/include add-ons to tailor your car insurance to your unique coverage needs. So, if your policy is expiring soon, don’t forget to add your car insurance renewal to your to-do list & use platforms like PhonePe for a quick and hassle-free renewal process!