A car insurance policy is a must-have to ensure financial protection of your precious car against unexpected events. It also ensures that you legally drive your vehicle on Indian roads. Owing to the importance of this policy, it is crucial to renew it on time and get uninterrupted coverage. Understanding when to renew your policy can help you avoid lapses and save on premiums. So, in the section below, let’s help you understand when to go for car insurance renewal.
Importance of Car Insurance Renewal
Renewing your car insurance is crucial in maintaining uninterrupted coverage and ensuring financial protection in case of an accident or unfortunate event. Some of the reasons why it is essential to perform car insurance renewal on time are as follows:
- Legal Compliance: An active car insurance policy allows you to meet the legal requirements for driving on Indian roads. This helps you avoid paying hefty fines or legal issues associated with lapsed insurance.
- Financial Protection: When you renew your car insurance policy, you will be eligible for coverage for car repair costs and liability claims, protecting you from significant out-of-pocket expenses.
- Premium Savings: While renewing your car insurance policy, you can compare policies and even switch insurers for better rates or coverage options, potentially lowering your premium.
- Customisable Option: Your car insurance policy's renewal period gives you an opportunity to adjust the coverage based on changes in your vehicle, driving habits, or personal circumstances.
- Peace of Mind: Offers reassurance, knowing you are financially protected and compliant with insurance regulations. Overall, you can enjoy peace of mind by renewing the car insurance policy on time.
- Continuous Coverage: Ensures you remain protected against financial losses due to accidents or damages without any interruptions.
Best Time Period to Renew Car Insurance Policy
As mandated by the Insurance Regulatory and Development Authority of India (IRDAI), a car insurance provider must offer a policy for up to three years. This step prevents policyholders from renewing their policy annually. No matter what the policy term is, you should consider renewal a few weeks before your current policy expires. This window allows you to review your coverage, compare options, and make any necessary adjustments. If you fail to renew the policy on time, you must speak to your insurer and check the grace period given to renew. Typically, the grace period is between 30-90 days. This grace period, however, varies from insurer to insurer, so it is better to check with the insurer about this.
Tips to Effectively Renew Car Insurance Policy
Listed below are some of the useful tips that will help you renew your car insurance policy effectively:
- Renew Online: The online car insurance renewal process is quicker and hassle-free. You can also earn discounts on renewing the car insurance policy online.
- Review Your Existing Policy: While renewing the policy, you must review the existing car insurance policy. This will help you understand if you want to make any changes to the existing policy and accordingly customise it.
- Check the Grace Period: Ideally, you must renew the car insurance policy before its expiry date. But, sometimes, there’s a chance that you may miss the expiry date. So, to be prepared against such situations, it is better to check the grace period with your insurer. The grace period is the limited period given by the insurer so that you can renew your policy even if it has expired.
- Compare all the Plans Available: You must also compare the different car insurance plans available when renewing. Doing so will help you get a policy that best suits your policy and budget.
- Install Safety Devices: Installing safety devices like an anti-theft alarm reduces the insurer’s liability for the insured car. With reduced liability, the car insurance premium also decreases. Thus, you can consider installing safety devices while renewing your car insurance policy.
Summing Up
Thus, renew your car insurance policy on time and ensure your vehicle’s financial protection against all the odds.
