You get many advantages when you renew your car insurance plan on time. Don’t allow the plan to lapse, and even if it lapses, renew it within the grace period.
Car insurance is one of the most widely sold types of general insurance in India. This is mainly because it is compulsory to have an active car insurance plan when you take your car out on the streets of India. As a result, not only do you need to get a new motor insurance plan as soon as you buy your vehicle, but you also need to renew car insurance on time to ensure the coverage stays active at all times.
What happens when car insurance is not renewed?
Quite simply put, you lose your motor insurance coverage when you don’t renew car insurance on time. If you happen to get involved in a car crash at that time, you cannot make any claim. Also, if you are apprehended by the traffic police, you will have to pay a hefty fine, as it is illegal to drive a vehicle in India without insurance. These are the main problems you face when you don’t renew your motor insurance plan on time. Thankfully, it is very simple and convenient to renew motor insurance and so you should get it done before your existing policy expires.
How to renew car insurance
Car insurance can be renewed online in a matter of a few minutes. You can renew an active plan, and you can also renew expired car insurance, provided it is within the grace period. All you have to do is go online and enter the details about your car and existing insurance plan. You can choose to continue with the same cover or change the plan. Choose the plan of your choice, pay the premium, and your policy will be renewed instantly.
Benefits of renewing car insurance on time
1. Always protected
You need to have an active car insurance plan, as that helps you to stay protected at all times. If you lose your insurance coverage for even one day and an accident takes place on that very day, you won’t be able to make a claim. This is why you need to renew your motor insurance plan on time and keep your vehicles covered.
2. Saves money
If you need to send your car for repairs due to an accident when the policy stays lapsed, you will have to pay the bills yourself. This can be very expensive, and you will end up losing a lot of your hard-earned money. Also, if you have to compensate a third party for any kind of damage, then also your money will get wasted. In the presence of an active car plan, you don’t have to worry about these expenses at all.
3. Easy and quick process
Renewing motor insurance is a quick and easy process. All you have to do is go online, fill up the renewal form, enter details about your existing plan, and then make the payment. As soon as you do so, your policy will be renewed. You can either choose to continue with your existing plan or switch over to a new plan at the time of renewal. All your bonuses, such as the accumulated NCB, will be taken forward to the new insurance plan. It is important to note that such benefits will only be available when you renew an active plan. If you have to renew expired car insurance plans, you may lose your accumulated bonuses.
How to renew a lapsed policy?
As mentioned above, it is possible for you to renew expired car insurance. You can renew the plan within the grace period, which is usually 30 days from the day of expiry. If you wait for more than that, your plan may expire, and you may have to look for a brand-new cover for your motor vehicle. However, if you are looking to renew the plan within the grace period, all you have to do is:
- Visit the website or mobile app of your insurance provider
- Choose a new cover for the plan
- Fill up the renewal form
- Pay the dues
- Hit the submit button.
Once you do so, your policy will instantly be renewed, and you can enjoy the coverage of an active motor insurance plan.
Preventing your policy from lapsing
While some people just allow their car insurance plans to expire and stay lapsed, others forget to renew them on time or have some genuine reasons for failing to do so. Whatever your reason may be, you can take some measures to ensure such a problem doesn’t strike you again. Here are some tips for you:
1. Set up autopay:
A good way to pay your car insurance premium on time and keep your policy active is to set up an autopay option with your bank or on your UPI app. Once that is done, the money will automatically get deducted from your account and sent to the insurance provider. Your car plan will get renewed on time, and you can enjoy continuous and uninterrupted coverage at all times.
2. Opt for long-term plans:
You can opt to buy a long-term car insurance plan which has a duration of three years. When you do so, you pay the premium for three whole years, and then you don’t have to worry about forgetting the premium payments or missing the renewal date for any reason. The long-term plans also prove to be more economical in the long run, and so are very preferred options among many motor car owners.
3. Choose your riders carefully:
When you renew your plan, you must review your add-on covers too. If your insurance needs have changed over the last policy period, you may not be benefitting from the existing riders any longer. Also, too many riders may have made your car plan too expensive, which makes it difficult for you to pay the premium on time. Drop the riders you don’t need any longer and have a more affordable premium amount which you can clear easily and on time.
Follow these simple tips, and you will surely be able to renew your plan on time and avoid any car insurance policy lapses.
Conclusion
When you become a vehicle owner, it is your responsibility to take care of your car as well as to take care of the other vehicles and people around. Having an active car insurance plan at all times helps a lot in this context. Always look to renew car insurance on time and keep yourself, your vehicle, and everyone else around you safe.
- Disclaimer: This article is for illustrative purposes only. For further details, please refer to the policy wordings and prospectus before concluding the sales.
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