A car is your loyal companion on the road. No matter where you want to go, you can drive it there anytime. Thus, it becomes imperative for you to protect it from damages of all sorts. And if it experiences any damage, you should have a contingency plan to get it revamped. An insurance policy is a great way to protect your car from damages.
As a car insurance policy is valid for a limited time, usually one year, many of us lose track of time and forget to renew the policy. So, this raises a question, what is the best time to renew car insurance?
The answer to this question has various aspects. In the coming sections, we are going to explore all of them!
When should you renew your car insurance policy?
Whether you buy car insurance online
or offline, it comes with a starting and an ending date. Most of the insurance policies are valid for a year. However, if required, you can also purchase a policy for more than one year.
Insurance Regulatory and Development Authority of India (IRDAI) allows the companies to provide insurance policies to its users for up to 3 years. This is for those who want to free themselves from the hassle of yearly renewal. But, if you have a yearly car insurance policy, it is best to renew it within the last 45 days of its tenure.
You shouldn’t wait for the last day. In the last 45 days, you can do your research to buy car insurance online and also check out your existing coverage. If you feel that something in your policy needs to be removed or added, it can be done easily.
If in any case, you forget to renew your policy within the required time, check if your insurer provides some sort of grace time. Grace time is a period within which one can renew his or her car policy after the expiration date. The grace period can vary from 3-30 days or even 90 days.
Note: Some insurers may also charge you with late fees for renewing the policy during the grace period.
Why is it necessary to renew your car insurance policy?
An insurance policy is like an armour for your car. If you renew your car insurance policy on time, you will get the following benefits:
You will save money
The renewal of a car insurance policy helps you save a lot. Unlike a renewed car insurance policy, a new policy will cost you more. You have to get your vehicle inspected, get a quote, and pay more premium than the policy renewing amount.
In a bad scenario, your request for a new policy can also be declined by the insurer. Moreover, the already done damage (major or minor) will not be covered in the new policy.
Apart from these, you have to pay the entire damage expenses from your pocket, if the insurance policy is not renewed.
Free from legal issues
If you drive a car on Indian roads and that too, without any insurance policy, you will surely get into a legal issue. And not only this, but you may also have to pay heavy fines. The Motor Vehicle Act (Amendment), 2019, describes that if you are driving without an active insurance policy, you may have to pay:
- A fine of Rs. 2000 or imprisonment of up to 3 months, or both on the first offence.
- A fine of Rs. 4000 or imprisonment of up to 3 months, or both on the second offence.
- Your driving license can get suspended if it happens repeatedly.
You will leverage add-on benefits (No-Claim Bonus)
The term no-claim bonus is referred to a discount in the premium that an insured person receives if he or she has not filed any claim during the policy’s tenure. With timely car insurance renewal
, you are entitled to get the no-claim bonus. It reduces your premium amount by a great margin.
Note: The no-claim bonus can be up to 50% of the insurance premium. However, it will depend on the fact that for how many years you haven’t filed a claim.
You can live tension free
In the case of a lapsed insurance policy, you will be living in constant fear of damaging your car. On the other hand, if it is renewed on time, you can drive anywhere without worrying yet being cautious.
Tips and Tricks to save money while renewing your car insurance policy
The best thing about renewing the policy is that you save money. Check out these tips to save more on your policy:
- Purchase online: There are many digital-only insurers in the market. These insurers sell policies directly to the customer at a reduced rate. Hence, try to buy car insurance online from them.
- Install an anti-theft device: Insurance firms offer a discount on your premium if you have an anti-theft device installed in your car. It also eliminates the probability of theft.
- Review your policy: There may be various aspects of your policy that may not be valid for you. It is best to get these off your policy to save costs. For instance, if you travel alone, the Passenger Cover rider will be of no use.
Is it safe to renew or buy car insurance online?
Absolutely, it is entirely safe to renew or buy car insurance online. This not only adds convenience but may also save you money. However, make sure that you are doing it from a legitimate source.
What should I look for when renewing car insurance?
There are some essential aspects to keep in mind while buying car insurance such as reviewing your coverage and insurer. Moreover, it is necessary to get the right IDV and the no claim bonus. Last and most important, renew the policy before the expiry date.
When does the car insurance rate become cheaper?
As you grow up, the car insurance rates
become cheaper. For instance, teenagers tend to pay the highest amount of car insurance. Once you are 30, the rates will fall significantly.
It is risky as well as illegal to drive on Indian roads without an insurance policy. And an expired insurance policy is considered invalid. Hence, it is best to get your car insurance policy renewed before time.