Your car insurance policy is only valid for a limited time. It could be for a year, three years, or five years, depending on the plan you choose. If you want to be covered in the event of an unexpected disaster, you must renew your insurance coverage on a regular basis. If you file a car insurance claim after your coverage has expired, your claim may be denied. There are various reasons why you need to renew your car insurance policy regularly and the biggest reason is to ensure you are getting the cheapest car insurance. In this article, you can read about the top reasons why renewing your car insurance regularly is crucial.
Top Reasons Why You Need To Renew Your Car Insurance Regularly
Because accidents are unpredictable, you should renew your car insurance policy on a regular basis. Some of the benefits of renewing your car insurance are as follows –
- Avoiding Legal Penalties
The Indian Motor Vehicle Act requires that you have at least third-party car insurance. Driving a car without a valid insurance policy is illegal. If you renew your insurance on time, you will avoid having to pay hefty fines if you are pulled over by the authorities. Many people underestimate the value of a car insurance policy and regard it as a waste of money. They avoid renewing their policies because they believe they will never need them. However, it is legally required to purchase a motor insurance policy because it protects you against legal and financial liabilities resulting from loss or damage to your vehicle or a third party.
- Lack of Protection
Accidents are unforeseeable. Mishaps can occur no matter how cautious a driver you are. Your car insurance policy will cover vehicle damage, driver injuries, and third-party damages. There is no coverage if your car insurance policy has expired, leaving you financially vulnerable in an unfortunate situation.
- You Are Entitled To A No Claim Bonus
A no-claim bonus is a premium discount offered by insurance companies to customers who do not file a claim during the policy year. If you renew your policy after the term has expired and have not made any claims, you will receive a no-claim bonus, which will reduce the cost of your car insurance. You will lose the discount if you do not renew your policy on time.
- Personalize Your Car Insurance
Insurance companies offer extra services in the form of add-ons or riders that can be added to your standard auto insurance policy. These can be added to your insurance policy at the time of purchase or renewal. When you renew your car insurance policy, you can select additional add-ons that are tailored to the needs of your vehicle. This way, when it comes time to renew your car insurance policy, you can tailor it to your specific needs.
- Escape From Expensive Premium
Your insurance company will ask if your previous policy has expired or not when you renew your policy. This is used to calculate the premium amount. You will pay a lower premium if you renew your policy on time. Otherwise, you risk having to pay more money. This is mainly because the IRDAI increases the cost of the premium for third party vehicle insurance. Since comprehensive car insurance includes third party liability cover, your car insurance premium is bound to rise if you don’t renew it regularly.
Purchasing a car insurance policy is not only obligated but also essential. If you are involved in an accident after your insurance has expired, you will be unable to file a claim, resulting in a significant financial loss. Therefore, make sure your car insurance is renewed on a regular basis and that you drive cautiously.