The Importance of Prioritising Timely Car Insurance Renewal for Vehicle Owners

For vehicle owners, ensuring timely car insurance renewal is not only a legal requirement but also essential for protecting oneself from unexpected financial burdens. Car insurance provides coverage against potential risks such as accidents, theft, damage, and even third-party liabilities. Failing to renew your insurance on time can lead to a lapse in coverage, leaving you exposed to significant risks and penalties.

Regardless of the type of car insurance you hold, whether it’s a third-party policy or a comprehensive plan, renewing your policy on time guarantees that you remain protected from unforeseen incidents. Let’s explore the reasons why timely car insurance renewal should be a priority for every vehicle owner.

Legal requirements and penalties

In India, having valid car insurance is mandatory under the Motor Vehicles Act. Specifically, third-party insurance is the minimum requirement for all vehicles. Driving with an expired or lapsed policy can result in legal consequences such as fines, penalties, or even the suspension of your driving licence. The fine for driving without insurance can range from approx. Rs. 2,000 for the first offence to Rs. 4,000 for subsequent offences.

By prioritising your car insurance renewal, you avoid legal penalties and ensure that your vehicle remains covered, allowing you to drive without worrying about fines or legal actions.

Continuation of financial protection

The primary purpose of car insurance is to provide financial protection against unforeseen incidents. A comprehensive car insurance policy covers damages to your vehicle in case of accidents, theft, fire, or natural disasters like floods or storms. It also offers third-party liability coverage for damages or injuries caused to others.

Failing to renew your policy on time means you are no longer protected, and any damages occurring during the lapse in coverage will have to be paid out of pocket. Timely renewal ensures that your financial protection continues without any interruption.

Planning to renew insurance coverage for your car? You can consider buying motor insurance online through the Bajaj Finance Insurance Mall portal. Choose from a wide range of car insurance plans offered by leading insurance providers, compare quotes and select the policy that best suits your needs and budget.

No Claim Bonus (NCB) preservation

A No Claim Bonus (NCB) is a reward given to policyholders who have not made any claims during the policy year. It offers discounts on your renewal premium, with the percentage of the discount increasing for each consecutive claim-free year. NCB can save you up to 50% on your premium over time.

However, if your policy lapses and you fail to renew it within the stipulated grace period (usually 90 days), you lose your accumulated NCB benefits. Renewing your car insurance on time ensures you preserve your NCB, allowing you to enjoy premium discounts in the long run.

Avoiding policy lapse and inspection requirements

If you fail to renew your car insurance on time and let the policy lapse, insurance companies may require a vehicle inspection before they agree to renew your policy. This inspection can take time, cause delays in renewing your policy, and even lead to a higher premium if any damages are found.

By renewing your car insurance before the policy expires, you can avoid the need for a vehicle inspection and maintain uninterrupted coverage without the hassle of additional steps or delays.

Enhanced protection through add-ons

When renewing your car insurance, you have the opportunity to review and adjust your coverage based on your current needs. For example, you can add optional covers such as:

• Zero depreciation cover: Ensures you receive the full claim amount without factoring in depreciation for the car’s parts.
• Engine protection cover: Protects your engine against damage caused by water ingress or oil leakage.
• Roadside assistance: Provides support if your vehicle breaks down unexpectedly, offering towing services, flat tyre assistance, and fuel delivery.

By renewing your policy on time, you can upgrade or customise your policy with these add-ons to ensure comprehensive protection for your vehicle.

Protection from increasing premiums

Car insurance premiums tend to increase each year due to inflation, changes in coverage rates, or adjustments by insurance companies. If you delay your car insurance renewal or let your policy lapse, you could face higher premiums when you eventually renew. This could result in higher costs and fewer benefits.

Renewing your policy before it expires allows you to lock in the existing rates, protecting yourself from potential premium hikes and ensuring that you receive the same level of coverage at the current rate.

Conclusion

Timely car insurance renewal is vital for vehicle owners to maintain financial protection, comply with legal requirements, and avoid potential penalties. It ensures that you continue to enjoy the benefits of coverage against damages, theft, third-party liabilities, and more. Additionally, renewing on time helps you preserve your No Claim Bonus (NCB) and avoid the hassle of inspections or premium hikes due to a policy lapse.

By prioritising your car insurance renewal, you ensure that your vehicle remains protected at all times, giving you peace of mind while driving. Make it a point to renew your policy on time to enjoy uninterrupted protection and the full benefits of your chosen type of car insurance.

Disclaimer: T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third-party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, The New India Assurance Company Limited, Cholamandalam MS General Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. URN No. BFL/Advt./23-24/478

Disclaimer: This article is part of sponsored content programme. The Tribune is not responsible for the content including the data in the text and has no role in its selection.