Mistakes to avoid while renewing your car insurance policy:

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25 May 2023

Renewal Pitfalls: Common Mistakes to Avoid When Renewing Your Car Insurance Policy

Renewing your car insurance policy is an important part of being a responsible car owner. But while it is important, it can also be a bit confusing and overwhelming. This is because there are a lot of options and decisions to make while renewing your policy. To help you avoid making any mistakes during the renewal process, here are some tips to keep in mind for your car insurance renewal online.

What do you need to avoid during car insurance renewal?

Here’s what you need to avoid during your car insurance policy renewal:

1. Policy lapse

If your car insurance policy is nearing its renewal date, it's important that you don't wait until the last minute. You must renew car insurance online as soon as possible to avoid any possibility of policy lapse. This will ensure that you are always covered in case of an emergency. Plus, you can often get better rates when you renew your policy early. So don't wait until the day before the deadline – renew your policy today and enjoy peace of mind.

2. Avoiding NCB

NCB or no-claim bonus plays an important role in keeping your overall car insurance premium low. So, when renewing your car insurance online make sure you have your NCB discount. In simple terms, if you haven't made any claims in the past year, you're eligible for a discount on your renewal premium. This can be as high as 50% of your premium amount, making it an important factor to keep in mind when renewing your car insurance policy.

3. Not considering add-ons

When renewing your car insurance policy, don't forget to consider adding riders or add-ons to expand the coverage. These riders can increase the range of protection and ensure that you are covered in the event of any unforeseen circumstances. They can also provide additional benefits like roadside assistance, medical payments, and more. So, make sure you are adding the necessary riders when renewing your policy.

Why is policy renewal important?

According to Indian motor laws, every automobile must be insured by a legal car insurance policy that includes at least third-party coverage. Nonetheless, as long as the policy is active, your car will be covered by auto insurance. Furthermore, to get advantages such as a no-claim bonus, you must maintain continuous and unbroken insurance over the years.

The best way to secure your automobile's continuing coverage is to renew your automobile insurance on schedule. If you fail to renew your vehicle insurance plan before it expires, your insurance coverage will be voided, and your car insurance provider will be legally obligated to settle any financial responsibilities originating from your automobile.

Conclusion

With these tips in mind, you'll be better prepared when it comes time to renew your car insurance online. It's important to know that renewal tends to be easier than getting a new policy, so make sure you've considered every option before making a decision. If you have any questions regarding the process of renewing or policies, contact your insurer directly.


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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.