Reasons Why You Should Renew Your Car Insurance Policy On Time
Reasons Why You Should Renew Your Car Insurance Policy On Time
Table of Contents
Car insurance policies come with a certain time period under which the policy is considered valid. As a car owner you should renew your car insurance policy to keep it active. It is very important to renew your car insurance policy before its expiration date. It is essential for a car owner to renew their car insurance policy on time to ensure that their claim is not rejected by the insurance provider, in case of a mishap.
Reasons Why You Should Renew Your Car Insurance Policy On Time
Below mentioned are some reasons why you should renew your car insurance policy on time:
1. Mandatory to Carry a Valid and Active Policy
As per the motor laws in India, a car owner must carry a valid and active third party car insurance cover. This means that as a car owner you must carry an active car insurance policy while driving in India. Failing to renew your car insurance policy on time will result in an inactive car insurance policy which is considered a violation of traffic laws. If you end up getting caught while driving with an inactive insurance policy, you may be penalised with fine or imprisonment.
2. Keep your Car Insurance Premium Nominal
Some car insurance companies can deny your request to renew the car insurance policy if the provider feels that the policy has been expired for a long time. If you fail to renew your car insurance policy on time, you may have to purchase a policy from scratch which can result in an increase in premium for your car insurance policy. Renewing your car insurance policy on time will prevent the increase in premium.
Also read - Myths About Car Insurance Busted
3. Save your No Claim Bonus (NCB)
Car insurance provides No Claim Bonus (NCB) which is a discount offered to the car owners for not making any claims during the policy term. This discount can be used to lower the car insurance premium at the time of renewal. No claim bonus starts from a certain percentage and increases for every claim-free year. The highest discount that one can get avail from No Claim Bonus is 50% for claims made for five consecutive years. If you fail to renew your car insurance policy on time, you might risk losing the accumulated No Claim Bonus discount. To retain your No Claim Bonus, you must renew your car insurance policy on time.
To Conclude
Timely renewal of the car insurance is very important as it is mandatory according to the law and provides active coverage. You must ensure an active and valid car insurance policy while driving in India. With timely renewal of your car insurance policy you can retain your accumulated No Claim Bonus and prevent increase in premiums.
You may also like to read - How to Find Your Car Insurance Policy Number?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
