What is a car Insurance Renewal?

A car owner is lawfully bound to buy third-party insurance as per the Motor Vehicles Act, 1988 and renew it in a timely manner. All-inclusive car insurance should also be renewed to avail the benefits and to avoid penalty. Renewal period is the time period where your car insurance is still in effect, but the insurance provider doesn’t rectify the damages caused to your vehicle in this time period. In any case, if you fail to renew your insurance policy within the stipulated time, the policy will lapse.

In the present day scenario online transactions are a blessing.. One can renew their car insurance renewal online in the blink of an eye, regardless of the initial mode of purchase. Most of the insurance providers have the facility to buy/renew their policies using electronic payment systems such as RTGS (real time gross settlement) and NEFT (national electronic funds transfer).

The need for a car insurance renewal

Timely renewal of car insurance policy saves you from unnecessary expenses. The government has made it compulsory to have a car insurance policy. A comprehensive insurance policy must be renewed on time to avoid a penalty. In some cases where renewal after the deadline is not viable, you will have to buy a new insurance for your car. While renewing car insurance, it also important to renew the policy on time for a better deal. At the time of renewal, the renewal costs tend to increase if the car does not meet the requirements of the insurance policy.

Renewing the vehicle insurance policy within the stipulated time is extremely important. Most of the motor insurance policies provided by insurance providers can be renewed once in a year.. Renewal information is communicated to the customers prior to the stipulated time through electronic mail / Phone call / Short Messaging Service (SMS). The grace period is usually not provided for a car insurance policy. One can make the necessary changes in the policy during renewal. Additional covers can be added to the existing policy while renewing the car insurance. Also if no claim has been made during the previous year, a discount known as the no claim bonus is provided by the insurance company to the policy holder.

Hindrances faced if you fail to renew your car insurance within the stipulated time:

  • In order to comply with the law, after the stipulated time of the lapsed one need to buy new car insurance for their vehicle.
  • It is observed that a fine should be paid for the days your car was left uninsured.
  • It is advised not to drive a car without any valid insurance cover; in the event of an accident the driver / owner is solely responsible for the damage caused to the car or the driver.

Driving a car without a valid motor insurance is considered as a legal offence.

How to get a car insurance renewal done easily?

Car insurance policy can be renewed easily online. Insurance companies have the provisions to do so. The insurance company provides timely notifications about the renewal and premium dates. Book an appointment with the insurance provider for vehicle survey and get a clearance certificate. The clearance certificate is valid or 24 hours only and the policy should be renewed within this time. Third party websites also provide a platform to compare the insurance policies depending on your eligibility. Traditionally you can renew car insurance by contacting the agent or the broker who aided you while buying the policy.  An uncomplicated, straightforward method to renew the policy is to do it online at the privacy of your home.

Steps to renew car insurance online:

  • Contact your insurance provider. Keep your login credentials (provided when you buy a policy) ready. Visit the insurance provider’s website and opt for ‘renewal of policy’.
  • After logging in, you will be redirected to a page to fill up the application form. Update the policy by providing necessary details and most importantly, the details of your expiring car insurance and the insurance provider.
  • Modify the address, if any. Verify the populated columns for any discrepancies. Choose and add-on covers if required. Submit the duly filled application form online.
  • To renew the policy, pay the premium through electronic payment systems.
  • Make sure you receive an acknowledgement receipt through email about the policy renewal.

You can also renew the policies through insurance aggregator websites like Coverfox.com, instead of Insurance providers.

    It is very important to renew your car insurance on-time. Driving a car with expired car insurance in India is a legal offence. An accident or theft caused during this hour will land you in financial risk. The ex-policyholder is financially liable for the damages caused to the third parties.

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