Reasons why you should renew your car insurance policy on time

Reasons why you should renew your car insurance policy on time

Reasons why you should renew your car insurance policy on time

Car insurance policies come with a certain period of time in which the policy is valid. As a car owner you must renew your car insurance policy to keep it active. It is very important to renew your car insurance policy before its expiration date. It is necessary for the owner of the car to renew the car insurance policy on time to ensure that his claim is not rejected by the insurance provider, in the event of an accident. 

Reasons why you should renew your car insurance policy on time

Here are some reasons why you renew your car insurance policy on time:

1. Mandatory to carry a valid and active policy

In accordance with India's car laws, the owner of the vehicle must carry valid and active third-party car insurance coverage. This means that as a car owner you must carry an active car insurance policy while driving in India. Failure to renew your car insurance policy on time will result in an inactive car insurance policy that is a violation of traffic laws. If you end up falling while driving with an inactive insurance policy, you may be punished with a fine or imprisonment. 

2. Maintain your nominal car premium

Some car insurance companies can reject your application to renew your car insurance policy if the service provider feels that the policy has expired for a long time. If you fail to renew your car insurance policy on time, you may have to buy an insurance policy from scratch which can lead to an increase in your car insurance premium. Renewing your car insurance policy on time will prevent the increase in the premium. 

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3. Save the No Claim Bonus (NCB)

Car insurance does not provide a claim bonus (NCB), a discount provided to car owners for not filing any claims during the policy period. This discount can be used to reduce the car premium at the time of renewal. The claim bonus does not start from a certain percentage and increases for each year are free of claim. The highest discount one can get to take advantage of a bonus not a claim is 50% for claims made for five consecutive years. If you fail to renew your car insurance policy on time, you may risk losing the accumulated no-claim bonus discount. To retain the no-claim bonus, your car insurance policy must be renewed on time. 

To the end.

Timely renewal of car insurance is very important because it is mandatory in accordance with the law and provides active coverage. You must ensure an active and valid car insurance policy while driving in India. With timely renewal of your car insurance policy you can keep your accumulated no bonus claim and prevent an increase in insurance premiums. 

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Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.

Reasons for the importance of car insurance

Here are some reasons why car insurance matters:

1. Mandatory for car owners

According to the law, it is mandatory for all car owners to have a car insurance policy while driving in India. In India it is a legal requirement to carry a third-party car insurance policy, which covers financial obligations incurred towards a third party. If the owner of the vehicle fails to carry a third-party cover, the driver can be punished with a fine or imprisonment. 

2. Third-party obligations

Third-party car insurance cover helps you cover third-party obligations, in the event of an accident that may result in damage or loss of third-party property. If you face any legal charges in the event of physical injury or third-party death, securing your car can help you protect against the same thing. 

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3. Damage to the insured car

A comprehensive car insurance policy can be used to cover special damages expenses. If your car is damaged by an accident, fire or self-ignition, the comprehensive insurance policy will cover the same thing. If your car is damaged by burglary, theft, strikes, riots, etc., your insurance policy will cover these as well.

4. Personal accident coverage

One of the main reasons why people choose to get a car insurance policy is that they provide personal accident coverage for a pre-planned amount. Personal accident coverage provides financial protection against accidental permanent total disability and accident-related death. 

5. No claim bonus

One of the biggest advantages of having a car insurance policy is no bonus claim (NCB). For each year the car owner does not file a claim for his/her car insurance policy, and he/she will receive any claim bonus for that year. The bonus ranges from 20-50% in accordance with the different terms and conditions of different insurance providers. 

To the end.

Buying or investing in an important car requires time and knowledge. People spend a lot of time choosing a car that is best suited to their requirements within their budget, what they don't put time and effort into is car insurance. The owner of the car must have either third-party car insurance or comprehensive coverage, which can help them financially protect themselves from the expenses of repairing the damaged vehicle in the event of an accident. Third-party car insurance has been made mandatory in India. 

You may also want to read - why buying lower-priced car insurance might be a bad choice?

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.