Car insurance renewal in India is mandatory by law for every car owner. If you fail to get your car insured or renewing your existing car insurance policy, you will be charged by the road traffic authority. Hence, car insurance renewal should be done on time to continue availing the benefits of the policy without any interruption.
The validity of your car policy is for a specific time, after which you need to renew the car insurance policy in order to be eligible for all the coverage and benefits that come along with it. The renewal has to be done before the policy expires or at least by the end of the validity. Here is a list of few things that you should know about car insurance renewal.
- The renewal date of the policy is when validity period of the policy expires and a new policy period begins. Renewal dates typically occur six months or one year after the policy began or last renewal date occurred.
- The major purpose of car insurance renewal is that it will give you an opportunity to make necessary changes in your policy. This means you can add more benefits to your policy or may even exclude the useless elements from your existing car policy.
- If the insurance company determines that the risks posed by you (policyholder) have changed, it may change your policy too, by adding restrictions or terminating coverage. General policy changes that affect all insured’s also take place at policy renewal.
- A change in risk may also trigger a premium change at the time of renewal. If a policyholder has not filed any claim then his/her policy premiums can be reduced, while a policyholder with several claims may see an increase in the premium value.
- At renewal, you can also consider switching policies, if you’re unhappy with your existing insurance provider or perhaps found a car policy at better rates with another company.
Mentioned below are some of the risks that you may have to deal with if you fail to renew your car insurance policy:
- If you miss getting the car insurance renewal done on time, your policy will get lapsed for a certain period of time due to non-renewal and you will have to buy a new car insurance policy in order to comply with the law.
- In some cases, you may even have to pay a fine depending on the number of days for which your car was not insured.
- Driving a car without any kind of coverage is highly risky and unwise. You may have to paying all the damages caused to the third part in an accident/collision without any official pardon.
Therefore, it is always wise to renew your car insurance policy on time to continue availing its benefits without any hindrance. Also plan your car insurance renewal in advance so that you can have sufficient time to make changes to the policy if required.
While renewing, try to get a better deal too. Also, the cost of renewal is likely to become higher if your car does not meet the fundamental requirements of the car policy at the time of renewal. This makes the renewal dates essentially important to be remembered. You can renew your car insurance policy online as well as offline, irrespective of your initial mode of purchase.