If you have recently purchased a new car, great! You may be excited to get behind the wheels and drive around and travel wherever you want. No matter how good a driver you are, you need to be careful everytime you drive as accidents may cause due to other’s fault which may cause huge financial loss. So, before you take your prized possession out on the public road, you must get a robust car insurance cover.
A car insurance policy guarantees financial protection against accidental damages and financial losses you may incur due to road accident. While car insurance is great for financial security, it comes with a limited validity, and you must renew your policy on or before the expiry to enjoy its benefits. Hence, you must not skip car insurance renewal.
If you think renewing car insurance is unnecessary, here are its benefits that will change your perception on car insurance completely.
• Coverage for third-party damages
Suppose you get into an unfortunate accident and damage a third-party's vehicle or property. In this case, insurance renewal will save the day for you. It will help you get coverage against the damages you caused to the third-party’s vehicle or property and the legal liabilities.
• Coverage for damages to your vehicle
When you renew your comprehensive car insurance policy online, you can continue to enjoy its benefits, including coverage against natural calamities like floods, cyclones, landslides, earthquakes, etc. Also, comprehensive car insurance covers man-made disasters like riots, burglary, vandalism, theft, etc. Thus, when you renew your car insurance on time, you get financial protection against all forms of damage to your prized vehicle.
• Switch the policy and insurer
Generally, most first-time car insurance buyers tend to buy the policy from the car dealer itself and they don’t give much thought to the insurer or the coverage offered at that time. If you find the coverage versus premium unfair, you can switch to a different policy and insurance company when you renew the policy online.
• NCB – No Claim Bonus
No Claim Bonus or NCB is the reward that insurance companies offer to those policyholders who don’t file a claim during the policy year. The reward is in the form of discount on the premium upon policy renewal. Typically, the discount starts at 20% in the first year, and it can go up 50% if you don’t file a claim for five consecutive years.
• Sense of security
The most significant benefit of renewing a car insurance policy online is that it gives you a sense of security. You can drive peacefully and with confidence knowing that you have sufficient financial protection against the damages and losses you may suffer due to an accident.
Even if you have a comprehensive car insurance policy, it does not cover all risks, and you may need additional protection. So, when you renew your policy online, you can choose riders and enhance the coverage. You can choose from riders like zero-depreciation cover, engine protection cover, roadside assistance cover, etc., as per your specific needs.
Consequences of not renewing car insurance
While there are many benefits of renewing car insurance diligently, non-renewal has a few consequences, such as:
You will be vulnerable to financial losses. Without a valid insurance, the insurer will deny paying for the damages.
If you don’t renew your car insurance policy on time, you face the risk of losing all the accumulated benefits like NCB.
If your policy expires due to non-renewal, buying a new policy can be time consuming and expensive. In the worst case, the insurer may reject your application for a new policy.
Having a third party insurance is mandatory as per the Motor Vehicles Act. Not renewing the insurance may attract fines.
Thus, you know that car insurance renewal is critical and has many benefits. And, if you fail to renew the policy you would be at risk of facing the music. We at Kotak General Insurance have a simple renewal process; you can renew your policy online with a click of a few buttons. You can visit car insurance renewal page to know more.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.