What is Car Insurance Renewal
Obtaining automobile insurance is the first move that every car owner must take when purchasing a vehicle. It acts as a safety net and protects the vehicle from any accident, natural disaster, theft, or vehicle damage, among other things. However, to keep receiving such benefits, you must make your car policy renewal on schedule. If you fail to perform your vehicle insurance renewal on time, your coverage will lapse, putting your vehicle at risk. This implies that if something catastrophic occurs to your car or a third party in the case of an accident, you will not be compensated. You will be responsible for any damages and repair charges, which will add to your financial burden. Additionally, according to the Motor Vehicle Act, 1988, driving a vehicle without insurance is a punishable offence. Hence, if your car policy is about to expire, you must renew it.
How to Renew Car Insurance
The process of renewing an automobile insurance policy has become relatively straightforward. You may now do your car insurance renewal online while sitting at home.
Here’s a step-by-step guide that will assist you in car insurance policy renewal.
Visit the official website or download the app of the insurer from whom you have taken your car insurance.
Navigate to the ‘Car Insurance’ section.
Click on ‘Renew the Policy.’
Provide the necessary information, such as current policy details, car information, personal information, and so on.
Choose the preferred kind of coverage.
Select the additional covers (in case of a comprehensive car insurance plan).
Provide the supporting documents and pay the car insurance renewal price.
Lastly, your new insurance policy will be approved after the document verification.
Features and Benefits of Car Insurance Renewal
Here are the benefits of auto insurance renewal.
1. Easy and Convenient
Technology advancements are helping each sector to grow and the automobile is also receiving benefits from this development. In this digital era, car insurance companies have also implemented new methods in order to provide a more user-friendly experience to their customers. As a result, you can now easily pay your vehicle insurance renewal online by accessing the website of your insurer or downloading their app from the Play store. It saves time and effort since you are not obligated to visit your car insurance company physically.
2. Financial Safety
Having renewed car insurance will come in handy in the case of an accident involving other people or property. It will cover any expenditures incurred as a result of an accident, natural disaster, theft, and so on, as well as address any legal issues.
3. Reliable Option
When it comes to auto insurance renewals, car insurance companies provide transparency to customers, making it simpler for you to make an informed decision. Furthermore, the premium payment method is safe, and you will not be exposed to any fraudulent dangers.
4. Policy and NCB (No Claim Bonus) Transfer Without Hassle
If you are thinking of changing your insurer or doing your NCB transfer, you can easily do it during the online car policy renewal process. You may make a comparison and choose the best car insurance renewal policy provider in order to receive additional benefits. Along with your auto insurance policy, they will assist you in transferring your NCB to obtain a low-cost premium rate.
5. Safety from Legal Troubles
According to the Motor Vehicle Act, 1988, every car owner must have car insurance in order to drive their automobile on Indian roads. Failure to do so will cause you to pay hefty penalties. Hence, if your policy is about to expire, you must do your car insurance renewal in order to avoid these difficulties. In addition, the insurer offers the option to renew expired car insurance, which may be utilised for policies that have already expired.
Car Insurance Add-On Covers
Here is the list of add-on covers that you can obtain in addition to your renewed car insurance coverage.
1. Zero Depreciation
The zero depreciation add-on will aid you in recouping the cost of fixing depreciated parts on the vehicle. This is a popular add-on cover that is best purchased if replacing car parts is expensive. Under this coverage, you may claim the full amount of compensation without any reductions for depreciated car parts.
2. Roadside Assistance
To aid yourself in situations requiring towing, battery jump starting, gasoline arrangements, minor repairs, alternative transportation, lodging, etc., you may purchase the roadside assistance add-on. If your automobile breaks down in the middle of the road and cannot be hauled to a garage, you can contact your insurer for assistance. The organisation will make certain that you receive the service at the earliest, and if necessary, the insurance will even provide you with lodging.
3. Return to Invoice
If your vehicle is lost or stolen, the return to invoice protection insurance ensures that you will get the full value of the vehicle (the on-road price of the car at the time of purchase).
4. No Claim Bonus (NCB)
An NCB is a discount provided to a policyholder by an insurance company for not filing any claims during the policy year. It is a discount that ranges from 20% to 50% (may vary across insurance companies) and is offered to the insured while doing the 4-wheeler insurance renewal. During renewal, the NCB discount is applied to the premium amount. Also, this discount is transferrable and can be used when purchasing a new vehicle.
5. Consumable Cover
Consumables are things that need to be replaced frequently to keep your automobile running well which includes engine oil, AC gas, brake oil, washers, etc. However, the costs of repairing or replacing consumables are not covered by your auto insurance policy. Hence, you can take the consumable add-on to lessen your financial strain.
6. Engine and Tyre Safety
The engine and tyres of an automobile are the most important components. With such a policy, you may include these parts of your car in your insurance coverage and protect yourself against any future expenditures. As a result, in the event of a replacement or repair, the insurance will cover the costs. Internal elements such as the gearbox, engine, and transmission are also covered under this engine protection add-on.
7. Key and Lock Replacement Cover
If you lose your car keys, you will be responsible for paying for new car keys as well as having your locks replaced. However, if you choose the lock and key replacement protection, this cost can simply be covered by your four-wheeler insurance policy.
8. Personal Accident Add-on
If your car is driven by someone else, you may get optional personal accident insurance for any driver other than yourself. The coverage extends to any damage or loss sustained while accessing or vaulting the vehicle.
Factors that Affect Car Insurance Renewal Premium
Here are a few factors that affect car insurance renewal premiums directly.
1. No Claim Bonus
NCB is a discount given to a policyholder by an insurance provider for not making any claims throughout the policy year. This discount ranges from 20% to 50% (varies across insurance providers) that is given to the insured when they renew their personal or commercial vehicle insurance. It is applied to the premium amount at the time of renewal.
2. Car Insurance Claim
The history of your auto insurance claims is another factor that affects your car insurance renewal cost. If you have filed frequent claims, this may increase the cost of your auto insurance renewal.
3. Ownership Transfer of a Vehicle
The cost of your automobile insurance may rise if you transfer ownership of the vehicle. Since the NCB pertains to the insured and not the automobile, it will not be transmitted with the car. As a result, the vehicle insurance policy renewal premium estimate will be computed without taking the NCB into account and it will increase the value of the insurance premium.
You may renew your auto insurance using an online method which is easy and hassle-free. Moreover, before proceeding with the renewal, you should do extensive research and compare the offered benefits with other companies. In addition to active car insurance, you may also do an expired car insurance renewal online. A vehicle insurance policy only provides protection and security in unpredictable circumstances, but also saves you from legal difficulties.