Anything you purchase has an expiry date. The same thing applies to your car insurance policy. The standard car insurance policy you can buy is valid for one year. The Insurance Regulatory and Development Corporation of India continues to introduce new regulations regarding policies whose policy term may be more than one year. You can visit the official website of IRDAI for further details. However, even these types of policies have a fixed expiration date. Once the term lapses, your policy is considered terminated. Terminated policy means termination of coverage. Therefore, in order for the insurance policy to be valid, you need to renew the policy. You can do so in many different ways. However, online renewal is often said to be the best option. Here are a few reasons online renewal of a car insurance policy is important:
Mandatory
The mandatory nature of car insurance is widely known. But in addition to having the policy, it is also important for you to stay covered. This means ensuring that you have coverage for as long as you need it. Hence, it is necessary to renew the car’s insurance. Purchasing a policy only once will do nothing. This is a limited term plan that needs to be renewed for uninterrupted coverage. Keep renewing the policy and make sure the insurance coverage is constant and continuous. *
Legal issues
When it comes to legal issues, it is better not to drive with an expired four-wheeler insurance plan than to drive without a four-wheeler plan. When a police officer stops you, he does not check if you have an excuse, he checks whether you have a valid car insurance policy. The policy should be valid to avoid legal issues. This means remembering when you have to do the car insurance renewal online. *
Financial liability
If your car is involved in an accident and causes damage to a third party, it may be problematic not to renew the third-party liability component of your car insurance plan. In such a case, as the policy is not renewed, the insurance company will not be liable to pay the loss. This means you have to handle third party liability on your own. *
Financial outflow
Failure to restore the own damage component of a four-wheeler insurance policy that is part of a comprehensive plan may result in heavy financial cost. Since you would not have the car insurance coverage, any repairs would have to be funded out of your own pocket. Depending on the damage to your car, this cost can be huge. Not having car insurance means that not only do you have to pay for repairs on your own but buying a new policy after will also be more expensive. *
Re-inspection
If not renewed for a few weeks, the car insurance company may feel the need to inspect the vehicle before renewing the auto insurance policy. It is to find out the current condition of the vehicle and record any damages that are already there. This type of inspection can take a few days to renew, which means your car will not be insured for another few days. Also, the premium payable after the car inspection can be increased. *
* Standard T&C Apply
During the renewal process, you can take help of a nifty tool called car insurance premium calculator to compute your insurance premium amount. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
