When should your auto insurance policy be renewed?
A car owner is shielded from several financial losses by a car insurance coverage when an accident
involving the owner’s vehicle occurs.If you have a car, you might be curious about the ideal time to renew
your insurance.
When Should I Renew My Car Insurance?
Every auto insurance contract contains a policy period that runs from the start date to the end date.
The majority of auto insurance providers provide yearly plans as well as three- or five-year long-term
policies.
A firm of insurance must provide motor vehicle insurance to its clients for up to three years, according to
the Insurance Regulatory and Development Authority of India (IRDAI). It is among the greatest ways to
avoid the headache of yearly insurance renewal. After three or five years, or whenever your coverage
ends, you may easily renew your auto insurance.
The optimum time to renew your auto insurance, however, is 15 to 30 days before the policy expires if
you have an annual or short-term coverage. It would be preferable to renew your auto insurance on or
after March 24, for instance, if your current coverage expires on April 23, 2022. To renew your four-
wheeler insurance coverage, you must first verify the grace period granted by your insurer if you miss to
do it on time. The grace period typically lasts 30 to 90 days. However, it may differ from insurer to insurer,
so you must carefully review your policy documentation.
Additionally, since your two-wheeler insurance coverage is now worthless, any claims made during the
grace period would not be considered. Additionally, if you renew your coverage within this grace period,
certain insurers could charge you late penalties.
Why Should Your Auto Insurance Policy Be Renewed on Time?
The following are a few factors that make timely renewal of your auto insurance coverage crucial:
1.You have no legal obligations.
As a car owner in India, you are required to have at least third-party coverage. You are shielded against
unintended financial losses and legal troubles by a proper auto insurance coverage. According to the
nation’s motor vehicle rules, if you are found by the traffic police driving with an expired or invalid
insurance, you will be subject to steep fines.
Driving without a legal automobile insurance for the first time will result in a fine of Rs 2000 under
Section 196 of the Motor Vehicle Act 2019, and a second offense will result in a fine of Rs 4000 and up to
three months’ imprisonment. Driving a vehicle without a current auto insurance coverage may potentially
result in the suspension of your license.
2.You can cut costs.
Saving a lot of money requires renewing your auto insurance on time. You will need to get a new four-
wheeler insurance coverage if you miss to renew your insurance on time. You will pay more than the
renewal premium if you do this.
In the worst case, if you get into an accident and don’t have any auto insurance, you’ll have to pay for
everything out of pocket. Therefore, before the policy’s expiration date is when you should renew your
auto insurance.
3.You won’t lose your accrued no-claim bonus.
You will be able to use the accrued incentive known as the No Claim incentive (NCB) if you renew your
auto insurance on time. It is a discount given by an insurer to the policyholder in exchange for no claims
being made throughout the term of the policy. Therefore, depending on the number of years without a
claim, you will be able to lower your renewal price by 20% to 50%.
4.Five Ideas to Lower the Cost of Car Insurance Renewal
You now understand how crucial it is to timely renew your auto insurance coverage. So, here are some
suggestions for you to successfully complete your subsequent purchase or renewal:
- Renewal from the Existing Insurer: If you renew a vehicle insurance policy with your current insurer, you can receive a loyalty discount or other freebies. Therefore, you must request auto insurance rates from your current insurer before transferring.
- While it is advised to get an insurance policy from your current insurer in order to receive loyalty discounts on premiums, you should also look into other possibilities because you could discover a better offer from a different insurer.You may accomplish this by evaluating several auto insurance policies on
- Purchase Online: You must search through the possibilities on the internet rather than purchasing the coverage in person.It is the easiest and most practical mode.
- Install an anti-theft device in your car; insurers will often reduce your rate if you do so because it reduces the likelihood of theft.You must thus install authorized anti-theft gadgets in your vehicle.
- evaluate Your Policy: You must evaluate your policy papers before approving the proposal. Never accept less, and constantly ask the insurance for extra services or benefits.
