Right Time for Car Insurance Renewal
It is mandatory to have a third party only insurance policy in India. Such a plan provides protection against any third party liability. Moreover, a comprehensive car insurance plan also covers damage to third party liability along with Personal accident cover and Own damage. To further enhance these covers,
Many fail to renew their car insurance plan before it expires. This causes individuals to lose out on benefits in case an untoward incident occurs. Let’s see why it is important to renew expired car insurance?
There are numerous benefits of renewing your policy before it expires. Following are three major benefits of car insurance renewal.
1. Financial protection
In case you are involved in an accident and your policy has expired, you will have to bear all expenses. This will lead to major financial losses. It is, therefore, imperative to check the expiry date of your plan and renew your plan without further delay.
2. No Claim Bonus benefit
Insurance providers offer No Claim Bonus (NCB) to those who have not made any claims in the past. In case your car insurance policy has lapsed for a period of 90 days or more, you will lose out on this benefit. You may, therefore, renew your policy on time and enjoy NCB on your next premium price.
Consequences if policy expires
In case your policy expires, you will lose out on benefits of the insurance plan. In such situations, you may immediately contact your insurance provider and evaluate the possible options to. Your insurance provider will either allow you to renew your plan or request you to apply for a new policy.
Ideal time to renew your car insurance policy
The recommended time to renew your plan is just before it lapses. You may submit a renewal request 60/45 days prior to your policy expiry date. Alternatively, you may choose the auto-renewal option. Your insurance provider will auto-renew your plan, thus allowing you to enjoy the policy benefits without any hassles.