As per traffic rules in India, it is mandatory for all car owners to purchase car insurance. Under the Motor Vehicles Act of 1988, all car owners should have limited liability third party insurance. In order to get protection for your own vehicle, you can invest in a comprehensive insurance policy. You must ensure that your policy is valid at all times, and must therefore renew it before it expires. Here’s why it’s important to renew your insurance policy. Also listed are the steps to renew the insurance policy online.
Importance of renewing car insurance
Other than the fact that you need to have seamless, uninterrupted coverage, here’s why it’s important to renew your insurance policy on time
- Your legal liabilities are secured
As mentioned above, it is compulsory for all car owners to get a third party liability car insurance policy. Having valid insurance provides you legal coverage when you in a stressful situation such as a road accident that leads to injury or death of a third party. If you do not have a valid policy when an accident occurs, your legal troubles could increase manifold. You may be charged a penalty or be sentenced a jail term, or both.
- It provides financial coverage
Along with your legal troubles, your financial woes could also increase tremendously if you fail to renew your policy on time. Car insurance companies are not obliged to offer you coverage for a single day after your policy lapses or expires. In such a situation, you have to bear all the costs associated with your and/or the third party’s hospitalisation and treatment from your own pocket. You also have to pay to repair the damage to your car as well as the third party’s vehicle in the accident. So you may have to bear huge financial costs and your savings could be impacted due to non-renewal on time.
- Your vehicle is covered against natural and man-made disasters
Car insurance renewal is also necessary if you want to receive coverage against natural disasters such as floods, earthquakes, tsunamis, cyclones, storms, tornadoes etc., in which your car may be damaged or destroyed. Further, you can get continued coverage against various man-caused incidents such as car theft or damage due to riots, strikes, terrorism activities and so on. However, this coverage is only provided to people who have a comprehensive insurance policy.
How to renew car insurance online
Today, you can purchase as well as renew car insurance online. The process of renewing the policy online is simple and straightforward and you can do it with just a few clicks. Here are the steps you need to follow.
- Visit the website of your insurance provider.
- Enter your name, contact number and your vehicle number and your insurance policy number among other things. Your details will pop up in the system.
- Modify the existing car policy as required. Change the policy type, the IDV of your car and add/remove add-on covers as necessary.
- After modifying the policy, you will be redirected to another page where you can review the policy, check the no-claims bonus provided (if you are eligible for it) and the new premium amount.
- Pay the insurance premium online and receive your policy via e-mail correspondence.
With online car insurance purchase and renewal, you can ensure that you are always covered against road accidents and vehicle damage. Renewal is the only time during which you can modify your policy and get no-claims bonus benefits for not filing claims in the previous year.