Your car is your faithful companion on the road, and it makes all your journeys comfortable, and easy. It may be the daily commute to the office or a drive along the countryside on the weekends; your ride will always live up to its performance and luxury, irrespective of weather or time. But what if the car suffers damage for no fault of yours?

Car repairs can be costly and may burn a hole in your pocket. To avoid such monetary setbacks in case of accidents or mishaps, always opt for a comprehensive motor insurance policy. This type of policy offers protection cover in case a claim is filed for accidental damage, theft, or total loss of the vehicle, and it even covers third-party liability.

Did You Know: A motor insurance policy is valid for a year, after which you are required to renew it.

When should you renew your car insurance policy?

Car insurance is a contract between the car insurance company and the policyholder. As per the contract, the policyholder is liable to pay regular premiums in lieu of continued insurance coverage from the insurance company.

And, similar to any other contract, the insurance policy comes with a start and end date, and you are required to renew it before expiry. Generally speaking, the right time to renew a car insurance policy is any time before the expiry date of the existing coverage. Some companies also give you a grace period from 30-90 days to renew your policy, and continue receiving all the related benefits.

However, the ideal time to renew a policy is in the last 45 days of the policy term. This is because it gives you enough time to re-evaluate your coverage. You can check out different add-ons available with your provider or assess if you need to drop a few existing add-ons. You can also check out other providers and conduct an in-depth comparison to find better coverage, if needed. The 45-day period will give you enough time to analyse your existing coverage and renew your car insurance with the most optimal coverage for your car.

Pro Tip: It is important to renew a policy before expiry to continue receiving the No Claim Bonus (NCB) discount on the renewal premium.

What happens if your car insurance policy expires?

At times, you might miss renewing the policy before the expiry date, and this leaves the car vulnerable to damages that are not protected by an insurance policy. When the policy ceases to exist, the insured vehicle does not have a cover unless the policy is renewed.

Some insurance companies offer a grace period for renewal; however, if you do not renew within the grace period, the policy lapses.

In case of a lapsed policy, a fresh car insurance policy should be purchased. This means that the car owner has to get the vehicle inspected, generate a quote, and then avail the policy.

Additionally, if the policy lapses, you lose all the accumulated No Claim Bonus and will have to pay the entire premium.

Why should you renew car insurance?

Car insurance is essential for every car owner. If you miss the renewal date, you would have to face several difficulties. During the days when the car is not insured, there is always a chance of some damage to it. Since there is no insurance cover to compensate for the monetary losses, the car owner has to manage the expense.

It is advisable always to renew the policy within the grace period. This is essential since the policyholder can retain the No Claim Bonus benefits from the previous policy. The same isn’t possible if the policy is renewed after the grace period.

Driving a car on Indian roads without a suitable car insurance policy is a legal offence and will attract hefty fines. As per the Motor Vehicles’ Act (Amendment), 2019, the fine for driving without a valid insurance policy is:

♦ First Offence: ₹2000 and/or imprisonment up to 3 months

♦ Second Offence: ₹4000 and/or imprisonment up to 3 months

Your driving license can also be permanently suspended in case of repeated offence.

The car owner will always be worried about the safety of the vehicle when the insurance is pending renewal. To avoid such stress, it is better to renew the policy on time.

Conclusion

It is best to schedule a date for the renewal of the car insurance policy to ensure that there are no delays. A delay in the renewal will mean a lot of hassle since a new policy will have to be purchased, and the policyholder will lose all the benefits, and discounts accumulated from the previous policy.

To avoid the above hassles, you can head to Royal Sundaram’s website to check out suitable car insurance renewal options.