Importance of On-Time Renewal of Car Insurance
The moment a car makes it to the parking slot at a car showroom, people forget every other aspect regarding the vehicle, the most important one being the car’s insurance. The indifference towards insurance renewal is very much prevalent in India. In fact, it won’t be erroneous to state that the car insurance and renewal are given a step-motherly treatment by most car owners.
Renewal is Critical
As the cliche goes, “it is no use crying over spilled milk”. This happens with most of the people in the country. They either don’t buy insurance policies or don’t bother to renew the car insurance before it lapses. As a result, they end up with a big financial headache. The expenses can easily be averted if people realize the importance of car insurance and on-time renewal of the same. It is pertinent for every car owner to take the various facets of insurance seriously. In case you have bought car insurance online, then do not lose sight of the expiry date. The consequences of not renewing car insurance are aplenty. Let us analyze these.
If you don’t have a proper car insurance policy or you happen to drive with an expired one, then you can be a legal offender, as the law mandates a bare minimum of third-party liability-only policy. And if you happen to attract the attention of traffic officials, then you might end up paying stiff penalties as an expired policy is akin to lack of insurance. To make matters worse, if your car gets damaged or you get injured due to a mishap, then you have to brace yourself for a protracted legal battle and major financial crisis. Sans an insurance coverage, you become ineligible to claim anything for damage or loss, which might not be entire of your making.
The car insurance policy protects your vehicle, covers you against any financial liability arising out of an accident i.e. your car causing bodily injury to any third party, or it ends up damaging any third-party property. Car insurance also comes in handy if you get injured by someone or your car gets damaged by another vehicle. So, it ensures freedom from all financial obligations. If your car insurance policy lapses, the coverage also ceases, rendering you financially vulnerable in such scenarios.
Prospect of Inspection
If you try to renew your expired car insurance policy, then you also face the prospect of vehicle inspection before a new policy is issued in your name. For this, a surveyor would visit your place, carrying out your car’s inspection. Based on the inspection, the surveyor submits a report to the concerned officials. Then, the report is scrutinized and if they find it satisfactory, a fresh policy is issued. These processes are time-consuming, and pretty inconvenient at the time.
Upon the renewal of your car insurance policy, you will always be asked whether your earlier policy has expired or not. This is basically to determine your premium. With the timely renewal of policies, you can easily get lower premiums. However, if your existing policy has lapsed, you might be charged a higher premium.
Loss of NCB
Insurance companies give you a No-Claim Bonus (NCB) as an incentive for safe driving. If you don’t make any claim in a policy year, then you get an NCB discount during the subsequent renewal. This discount can be accumulated over the years and it can go up to 50 percent for not making any claim for 5 successive years. However, the NCB can be availed only if your policy is renewed on time. In case, your car insurance has expired and if you do not renew it within 90 days from the date of expiry, the entire accumulated NCB will be negated.
To conclude, the on-time renewal of your car insurance is really significant in the light of legal and financial implications. So, be very prompt with the renewal of car insurance in your car.
Learn what steps to take when your car insurance has expired
**To understand exactly about the policy coverage, exclusions, etc read the Policy Wordings carefully.**