Reasons to Renew Your Car Insurance Policy
Reasons to Renew Your Car Insurance Policy
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Car insurance plans have a validity term during which they are deemed valid. To keep your automobile insurance coverage valid, you need to renew it every year. It is critical to renew your automobile insurance coverage before it expires. In the event of a catastrophe, the car owner must renew their car insurance coverage on time to guarantee that their claim is not denied by the insurance provider.
The Benefits of Renewing Your Car Insurance Policy on Time
Some of the reasons why you should renew your auto insurance coverage on time are listed below:
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It's a Legal Need To Have A Current And Active Policy
An automobile owner in India is required by law to have a valid and active third-party car insurance policy. This implies that if you own a car in India, you must have valid car insurance coverage. Failure to renew your auto insurance coverage on time will result in an inactive policy, which is regarded as a traffic infraction. If you are discovered driving with expired insurance coverage, you may be fined or imprisoned.
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Maintain a Nominal Car Insurance Premium
Some automobile insurance providers may refuse to renew your coverage if the provider believes it has lapsed for an extended period. If you fail to renew your vehicle insurance coverage on time, you may be required to purchase a new policy, which might increase your car insurance rate. The rate rise will be avoided if you renew your auto insurance coverage on time.
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Make a note of your No Claim Bonus (NCB)
Automobile insurance offers a No Claim Bonus (NCB), which is a discount given to car owners who do not file a claim during the policy period. This discount may be used to reduce the cost of auto insurance when it's time to renew. The no-claim incentive starts at a set percentage and grows with each year without a claim. The maximum discount that may be obtained from the No Claim Bonus is 50% for claims submitted for five years in a row. If you don't renew your auto insurance coverage on time, you risk losing the No Claim Bonus you've accrued. You must renew your auto insurance coverage on time to keep your No Claim Bonus.
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Defends Against Financial Liability
Any loss or damage to your automobile is covered by your motor insurer if you have a car insurance policy. Whether your automobile has been damaged or has caused damage or injury to a third party, your insurance is responsible for the financial obligation that results. However, if you do not renew your automobile insurance coverage before it expires, your motor insurer is legally obligated to cover any financial responsibilities originating from your vehicle. Your insurance will not cover any loss or damage caused by your automobile, even if it occurs during the grace period. As a consequence, you'll have to pay for the damages your automobile has received or caused out of your cash. If you injure a third person and cause his or her death, the situation might become financially stressful. In this situation, you may be legally obligated to pay the victim's family compensation, which can range from a few million to a few crores, without any financial assistance from your car insurance renewal.
Take Away
It is important to renew your automobile insurance on time since it is required by law and offers active coverage. While driving in India, you must have current and legal auto insurance coverage. You can keep your collected No Claim Bonus and avoid rate increases by renewing your auto insurance policy on time.
Also Read:
Car Insurance Premiums For SUVs And Sedans: What Influences Them
