Vehicle owners can ensure their vehicle’s safety without overspending by getting insured. A vehicle insurance policy is a must for two – and four-wheeler owners. Indian roads require at least third-party liability coverage and a motor insurance policy by law. Motor insurance protects owners from driving risks like theft, third-party liabilities, and vehicle damage. Policies last a year, so owners must renew their motor insurance policy before expiration to stay insured.
Characteristics Of Vehicle Insurance Renewal
The following are the main characteristics that necessitate renewing auto insurance:
Smooth Policy Renewal
Auto insurance providers have streamlined the renewal procedure. Renewing your vehicle’s insurance only takes a few easy clicks on the internet.
Safeguarding The No-Claim Bonus (NCB)
An NCB clause is typically included in auto insurance policies. If a policyholder has yet to file a claim in a year, they can use this to lower the cost of their motor insurance renewal. With certain insurance companies, the bonus can reach 50% of the premium value and rise with each passing year. However, the benefits of the clause will expire unless you renew your auto insurance policy promptly.
Legal And Social Duty
The Motor Vehicles Act of 1988 requires a third-party policy for your vehicle. Without it, you face severe penalties. Obtain a motor insurance policy for your vehicle. Socially, prompt renewal of auto insurance coverage guarantees financial security for you and the third party in an accident.
Required By Bank Clauses
Your bank requires specific requirements before allowing your vehicle as collateral. Motor insurance coverage is needed to qualify.
Failure To Renew May Result In Financial Liability
Failing to renew your auto insurance’s Third-party Liability portion can be costly. The insurer won’t cover losses if your vehicle injures others in an accident. You’ll be responsible for handling third-party liability yourself without insurance support.
No Coverage Throughout Grave Period
After a policy expires, there’s a grace period for auto insurance companies to renew it quickly. This window doesn’t increase coverage but allows renewal without extra cost. If you renew within this time, your claim won’t be denied due to expiration. But if damage occurs after the grace period, the insurer will deny your claim, citing an invalid policy.
A Vehicle Inspection May Follow Non-Renewal
If the policy isn’t renewed soon, the insurer may inspect the vehicle first. They want to know the vehicle’s current state and record previous damage. This process takes several days, leaving your vehicle uninsured. After inspection, the premium may also increase.
How Can My Auto Insurance Policy Be Renewed?
Renew your bike insurance online to save time. Follow these steps:
- Visit your provider’s website.
- Go to the “motor insurance renewal” page.
- Choose your coverage options.
- Add extra covers if needed. Pay the premium online.
- Download your policy copy.
Renewing motor insurance provides ongoing financial protection against accidents. Timely renewal and considering coverage and premiums comply with legal requirements. Regularly reviewing insurance needs ensures adequate road protection and peace of mind.
