Want to secure your car? Renew your car insurance plan on time! We know that your vehicle holds huge significance in your life. It is also important that you make sure it is always insured. Just in case you run into damage & repair expense issues, your policy will cover you against it. Car insurance is the most effective and affordable way to secure yourself against financial loss arising from accidental damages or theft of your car.
When is a good time to renew car insurance?
Your car insurance policy comes with a tenure commencement and expiry date. The tenure of the policy is usually for a year unless you have opted for a multi-year car insurance policy. The Insurance Regulatory and Development Authority of India (IRDAI) has authorised the general insurance companies to issue car insurance for a maximum term of 3 years.
Below we have mentioned when to renew your car insurance policy:
- If you have bought an annual car insurance plan, make sure to renew your car insurance within 15 to 30 days before the expiry date.
- If you want to avoid the hassle of renewing the policy every year, it is better that you opt for the 3-year car insurance plan.
- Lastly, in case you forget to renew the policy, you may check with your insurer if there is a grace period within which you can renew the plan. The grace period can vary between various insurers. But please note that during the grace period, your car insurance policy is considered null and void, and no claims will be accepted.
What is a grace period in car insurance?
The grace period is usually 15-30 days post the expiry date of your car insurance policy. However, it varies from insurer to insurer. You must keep in mind that you cannot make any claims during this period, but it means that you can get your car policy renewed without facing any consequences like increased premium price, etc.
Why should you renew your car insurance before its expiry?
As we have mentioned earlier that if you don’t renew your insurance on time, your insurer may not be able to help you with your claims. You would not be covered for financial losses in case of accidental damages to your car since you cannot file a claim through an expired policy.
Besides this, there are more reasons why renewing your car insurance policy before the expiry date is important. Have a look at the following:
- If you do not renew the plan within the stipulated time, you may lose the accumulated No Claim Bonus (NCB).
- You may have to face a penalty for driving the car without valid insurance.
- If there is a long gap between the expiry date and the renewal date, then, there may be a hike in the premium of the policy.
- Lastly and most importantly, the insurer may want to inspect the vehicle before issuing an insurance policy.
We hope that now you have an idea of the importance of the on-time renewal of your car insurance policy. If you want more details or wish to explore insurance plans, you can log onto our Bajaj Finserv app for detailed information.
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