There are people who consider auto insurance to be a wasteful expense and a liability, despite its status as a mandatory legal document. Some simply forget to renew it in general and this exposes them to legal and liable risk. If you end up being in an car accident without a valid insurance policy, you not only pay for the damages from your own pocket, but also legal charges if the police or a third party gets involved.
Every insurer offers a No Claim Bonus (NCB) with your policy that determines the returns that you obtain on maturity of the policy. NCB is a discount you receive on the premiums you pay for your policy on not making any claim over the tenure of your insurance plan.
You are liable to receive as much as a 50 percent discount from insurers based on the number of years you’ve been claim-free during the plan’s tenure. Not renewing your auto insurance for over 90 days cancels out the benefits of NCB. You won’t be able to carry forward your NCB benefits to your next car either.
To renew insurance of your car after the expiry date has passed is a hard task and as good as making a new one. Additionally, any previous damages found by the insurer during inspection will not be covered. Thankfully, you will not face the problem of forgetting to renew your car insurance since insurance companies now mail or text you before the policy’s expiry.
Also, you can now purchase or renew your car insurance policy online as there are many third-party insurance portals offering cheap car insurance premium options on their policies available in mere clicks.
The Insurance Regulatory and Development Authority of India (IRDA), in an effort to encourage the purchase these policies, now allows the insurance companies to offer long-term policies that cover your car’s financial security for up to 3 years.
These multi-year insurance policies come with attractive discounts while saving you from the hassles of paying premiums on a yearly policy and its renewals. It is better to save yourself from the task of remembering the renewal date every year and opt for a long-term insurance policy.
To better understand the workings of a car insurance policy or to avail financial planning assistance in the purchase of a vehicle, write to us at PL-India Motor Insurance and we shall revert at the soonest. Alternatively, do email us at email@example.com