Everything About Car Insurance Renewal

Posted on: Oct 14, 2019 | | Written by:

Everything About Car Insurance Renewal

Published on October 11, 2019. EST READ TIME: 4 MIN

Driving an insured vehicle is mandatory under Indian laws as stated under the Motor Vehicles Act 1988 and the recently passed Motor Vehicles (Amendment) Act 2019 and therefore it is an offence to drive without a valid motor liability-only insurance. We set reminders to not miss a date or to meet our friends but when it comes to renewal of a CAR INSURANCE POLICY or a two-wheeler insurance policy; we find it difficult to renew them even after being sent repeated reminders from the existing general insurance company.

Moreover, the more time you take to renew the car/bike insurance policy after it lapses, the more complicated it gets to renew it. The best time to get the car/bike insurance renewal done is at least 15 to 20 days prior to the date of expiration. If the motor insurance policy lies in a lapsed state for more than 90 days, you stand to lose the cumulative No Claim Bonus (NCB) amount, if you have not claimed the No Claim Bonus for 4 years or more, then you could lose up to 45 to 50 % NCB.

What is Car Insurance Renewal?

A car insurance plan is valid for a period of one year. After this, you need to pay the premium again and get the coverage renewed. This is known as car insurance renewal. It is very important for you to get your car insurance plan renewed on time as that allows you to enjoy uninterrupted coverage. If you do not renew your plan on time, it lapses and you lose all the benefits, including your accumulated NCB.

It is very easy to renew your car insurance plan and it can be done online in just a few minutes, so do not delay in renewing your policy if it is about to expire.

Types of Car Insurance Policies in India

Third Party Liability: In this type of motor insurance policy, the motor insurer safeguards you from the liability arising from any bodily injury to the third party or damage to the third party property. As per the Supreme Court order, any new two-wheeler bought after September 1, 2018 needs to have a mandatory THIRD PARTY INSURANCE of 5 years and for a car, it needs to have a mandatory third party insurance of 3 years.

1. Comprehensive Insurance

This plan offers coverage against damages to your vehicle from natural calamities like hurricanes, fires, earthquakes, and man-made events including riots, strikes etc. In addition to this, it covers any third-party liability in terms of death, bodily injury and property damage. Further, It is also mandatory to take personal accident cover for owner-driver for a sum insured of Rs 15 lakhs

2. Standalone Own Damage Insurance Policy

This type of insurance policy provides coverage against liabilities arising from damage to your vehicle against theft, fire, flood, earthquake etc. According to a circular from Insurance Regulatory and Development Authority of India (IRDAI) that from September 1, 2019, motor insurance companies would be able to offer separate standalone annual Own Damage cover.

Factors Affecting Insurance Premium

1. Geographical Location

Yes, the city where you decide is an important factor that affects your motor insurance premium. Insurers have classified various locations in the country therefore the premium of your insurance policy is affected by the zone in which your city falls in.

2. Type of Insurance Plan

As already discussed there are three types of car/bike insurance plans, the third party insurance is the cheapest but it covers only liability arising from bodily injury to a third party or damage to the third party property but in case of comprehensive plan it covers third party liability as well as damage to your own vehicle from natural calamities like fire, earthquake and also manmade events including riots, arson etc. A comprehensive plan is more beneficial as it offers coverage for third-party liability and also own damage but comes at a higher cost in comparison to Third party liability and a standalone own damage car insurance policy.

3. Engine Type

The type of Engine and the cubic capacity of the engine affect the premium of your insurance policy, if you have a vehicle which runs on diesel then you would have to pay a higher premium and the premium increases if the cubic capacity of the engine increases.

4. Safety Features

A MOTOR INSURANCE PLAN offers coverage against possible risks your vehicle might encounter, therefore if you have safety equipment like gear lock, handle lock, airbags and GPS tracking device, the motor insurer would then take a note of this and therefore you might be offered a lower premium.

Switching Insurers

If you’re dissatisfied with your current motor insurer then you can opt for a new insurer at the time of insurance policy renewal.

However, you need to evaluate the reasons for your decision to switch the motor insurer like better claim settlement ratio or premium.

You can also switch insurers at the time of renewal if you feel that other motor insurers offer better Add-On coverage options.

Things to Remember While Renewing Your Car Insurance Online?

There are some important factors to note when you look to renew your car insurance policy online. They are:

• Check the type of coverage you need

You need to start by assessing your requirements and seeing what type of car insurance cover you need. This will help you to keep you and your car safe and protected in the best possible manner. If you have a comprehensive plan, you can shift to a third-party cover and vice-versa, depending on your needs and requirements.

• Check the riders available

It is possible for you to adjust your riders at the time of a car insurance renewal. You may not need all your existing riders, and you may benefit from adding a few other riders. Assess all the riders available and then choose only the ones that you need the most.

• Decide upon a good insurer

You need to choose a very good insurance provider. If you are not satisfied with your current insurance provider, you can make a switch at the time of renewal. Check the claim settlement ratio, customer service, etc of the new insurer and then make your final decision.

• Adjust the NCB

Do not forget to adjust the no-claim bonus when renewing the car insurance plan. The NCB can fetch you a handsome discount and make your car insurance cover very economical for the upcoming policy period.

Benefits of Online Renewal of Policies

The foremost advantage of renewing your car/bike insurance policy online is that the actual process is really fast unlike the offline process where you have to wait for an insurance agent, the whole process involves a lot of paperwork making the whole process cumbersome and time-consuming.

Renewal of Lapsed Car Insurance Policies

If you are renewing your car break-in policy online, a surveyor would survey the vehicle and send his report to the insurance company OR you could opt out of a survey of the vehicle You need to keep documents like a Registration certificate, previous policy details, Vehicle details like model name, engine capacity RTO details and registration number ready irrespective of whether you are following online or offline mode of activation. You would be sent a soft copy of the policy immediately on the email ID registered with

Why HDFC ERGO??

HDFC ERGO is a brand trusted by 1 crore + customers. The company offers insurance products across categories which include motor, travel, health and home in the retail category and insurance products in property, marine and liability insurance on the corporate side.

1. Over 1 crore+ happy customers

2. Overnight Car repair Services in 16 cities

3. Transparency and seamless claim process

4. Dedicated In-house claim settlement and customer support working 24*7

5. Online Buying and Renewal, Go paperless

6. 7,600+ network garages across the country

7. Seamless and Easy Claims! Assured

8. Registration and Tracking of claims through the website

9. Regular claim update on the mobile

10. Facility of the preferred mode of claim settlement circular from the Insurance Regulator

Conclusion

As you can clearly see from the points mentioned above, there are many benefits of getting your car insurance renewal done on time. However, to get the maximum uses out of your policy, remember to choose a good insurance provider and the correct type of policy. Keep all the tips mentioned above in mind, choose the best coverage and stay protected at all times.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales

This blogs has been written by Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle

Does Owning a Manual or Automatic Car Affect Insurance Premium?

Car insurance renewal checklist to follow

Car Insurance Due for Renewal: Tips to get Cheaper Car Insurance

Renewal Steps For Car Insurance

Tips to Reduce Car Insurance Renewal Cost