Advantages of Renewing Your Motor Insurance On Time

You must understand that a car insurance policy has validity and you have to renew it before the validity ends. According to Indian laws, it is compulsory to have a car insurance policy and getting it renewed on time is equally important.

By Carandbike Team

1 mins read

Published on June 21, 2022

Highlights

Reasons To Have Your Car Insurance Policy Renewed on Time: It Makes Sure You Get Continued Coverage It is very important to have a car insurance policy in case you need to provide financial coverage for your car. If your vehicle is insured you get other benefits such as no claim bonus, zero depreciation cover, facility of cashless repair, etc. However, you can get car insurance coverage during the validity of your policy. You require constant coverage for your car and the only way to get it is by renewing your car policy before its expiry date. Photo Credit: img.rawpixel.com To Follow the Motor Laws According to the motor laws in India, every single car should have a valid car insurance policy even if it is a third party cover. The meaning of this is that your car must be constantly covered under insurance if you use it on public roads. You will not get any coverage if you fail to renew your insurance on time. Also, you are violating Indian motor laws if you are driving a car whose insurance policy is expired. Photo Credit: financialgoalguide.com Avoids Financial Liability You get coverage from your motor insurer if your car is damaged or suffered any losses. If it is your car that has suffered from the damage or you caused damages or injuries to other people, your insurer would cover the financial liability. However, if you do not get your insurance policy renewed before it is expired, then your motor insurer will have no legal obligation to cover any kind of financial liability that arises from your car. No Claim Bonus Would Be Intact If a car owner does not raise any kind of car insurance claim in the preceding year then the motor insurance company will reward him with a no claim bonus. You receive a discount when you renew your insurance policy when you use any claim during the policy year. No claim bonus could be amassed and the minimum you can get is 20 per cent but you may also lose it if you fail to renew your policy for a period more than 90 days after its expiry. Photo Credit: www.buildcapital.in It Makes Sure You Get Renewal Without Any Difficulty You do not have to go through a vehicle inspection if you renew your car insurance policy on time. Your insurance company would consider you as an unconcerned car owner and you may need to go through a vehicle inspection when you attempt to get your car insurance policy renewed after a period of time. The inspection of your car would be unnecessary trouble and as a consequence, it may reduce the insured value of your car and also hike the premium amount.