Decode the Process of Car Insurance Renewal

It is a good decision to purchase a car insurance plan as it safeguards you from damages caused to your automobile as well as from damages caused to a third-party. Along with this, it is also mandatory to buy one as per the Motor Vehicles Act, 1988, and the Motor Vehicles (Amendment) Act, 2019. If you drive a car without a valid third-party insurance policy, you will be getting on the wrong side of the law.

Also, make sure to note down your car insurance renewal date just like you remember other important days in your life. However, even if you don’t do so, the car insurance company will send you reminders.

It is always a wise decision to renew your car insurance before it lapses else it could get complicated later. It is best if you renew it some 15-20 days before the actual expiration date. If your policy has lapsed and you’ve also passed your 30-day grace period, then you even lose out on the accumulated No-Claim Bonus (NCB). It would be disheartening if you do not make any claims for 4 years and then forget to renew your policy on time. NCB in the fifth year earns you a 50% concession on premium, which is a great deal.

Here are the two major types of car insurance policies that you can buy:

  • Third-party liability

Any liability that arises from injuries caused to a third-party’sperson or propertywill be covered under this plan. Now, if you purchase a new car, you must also buy a third-party insurance plan for 3 years compulsorily, according to the Supreme Court order.

  • Comprehensive policy

This is a more extensive coverage and offers protection for own damage as well as third-party liability. Under this cover, the insurer also offers coverage in case of damages caused due to floods, earthquakes, riots, strikes, etc. You can even opt for various add-on covers and enhance your plan.

It is essential to renew your car insurance policy to keep it active. Here’s the simple process of doing it:

  1. Do your research

If you are not happy with the coverage your current plan provides you, the first taskis to look for a reputed insurance provider. Read reviews online as to which insurance company provides good pre- as well as post-sale service. You must also receive a good deal for sufficient coverage.

  1. Select policy type

Here, you need to decide what type of insurance policy you require as per your usage, i.e. either third-party liability or comprehensive cover. Then go on to your preferred insurer’s website and opt for the same.

  1. Provide thenecessary details

Now, you need to provide the necessary details for the KYC (know your customer) process. Make sure you provide accurate information as any false information would lead you to trouble.

  1. Purchase add-ons

If you’ve selected a comprehensive plan, you can opt for additional covers to enhance your existing plan. Choose from the available add-ons, i.e. are Lock and Key Replacement Cover, Engine Protector, Consumables Expense, Accident Shield, and 24×7 Roadside Assistance, etc. Keep in mind that these covers add up to your premium. Therefore, don’t get excited while buying and choose wisely.

  1. Make the payment

After the above-mentioned steps are followed, you must finally make the payment to avail the insurance policy. Your insurer will then receive the payment and send you your renewed policy immediately through email. You can then print it and keep a copy at home and one compulsorily in your car. For convenience, you can opt for the digital alternative by saving the soft copy on the government-approved Digilocker app.

The internet has made car insurance renewal online a fairly simple and hassle-free process and there’s no reason for you to delay your policy renewal anymore.

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