Car Insurance Renewal- Extending Your Vehicle’s Life Against Unpredictability
Car Insurance is your primary line of defence against the unforeseen eventualities of life that could potentially (and negatively) impact your cherished set of wheels. And, car insurance renewal, is the essential, thoughtful and responsible option to save yourself, your car and your loved ones against such eventualities.
How to deal with Car Insurance Renewal
Renewing your car insurance is extremely simple. You can do this easily online on your insurer’s website or even on BankBazaar. You can also switch your policy to a different insurer. The process is easy if you do it on time. Renewing your car insurance before it expires makes all the difference between it being hassle-free and it turning into a nightmare. But if you have missed your due date, or realised your policy has expired, fret not! There are ways to fix this situation. It might require extra effort and might cost you more, but it will get your insurance renewed.
Car Insurance Renewal After Due Date or Expiry
Car insurers offer different terms and conditions on their policies. Some companies offer grace periods to give you some time to pay the premium and renew your policy. This period can range between 3 days and 30 days. Some companies impose a late fee for using the grace period.
Not all companies offer this period. If you do not have a grace period, then your policy will expire on the due date. In case you are granted a grace period, be sure not to overuse it or take advantage of it. Use it only when you absolutely need it.
If you are renewing your policy after the due date, here are some pointers:
- Ensure you have a grace period. Ask for this information from your agent or insurer.
- Be aware of fees and charges for using the grace period.
- Making late payments can disrupt your future payment schedule.
- You may face issues with renewing your policy if you consistently pay during the grace period.
- When you are renewing your policy, ensure you have paid all dues including late fees.
- Also make sure any changes that have to be made to your policy is done accurately.
Expired Car Insurance Policy Renewal
If you fail to renew your policy before the expiry date, then your insurance lapses. You will not have insurance on your car and you legally can’t drive on the roads in India. The police can impose a fine or seize your vehicle if you do not have a valid insurance policy. The consequences of missing the renewal before its expiry are plenty.
- If your policy has lapsed for a significant period, you may not qualify for renewal. You might need to apply for a new policy.
- Your premiums might be higher and previous benefits might not be applicable.
- Fines can be imposed for the days you missed.
- Vehicle inspections might have to be conducted.
- You might lose your no claim bonus.
- If you choose to drive your car without a valid policy, you can run into trouble with the authorities.
- If you meet with an accident without a valid insurance policy, you will have to bear the damages on your own.
Some important things to remember about your car insurance policy are:
- It’s always better to renew your policy before it expires.
- Find out the time at which the insurance lapses. Policies may run out at 12:01 a.m. on the date of expiry, which means you only get one minute of coverage on the due date.
- Renew ahead of time to avoid hassles.
Car Insurance Renewal After Accident and Claim
People also face issues with renewing their policy after meeting with an accident or making a claim from the insurance company. Since the purpose of insurance is to protect you in the event of an accident, one would wonder why insurers increase the premium after you have been in one! It can be frustrating if you are not aware of the details of your car insurance policy. These are things that weren’t taught in school, and we struggle to learn in real life. Many people take policies without knowing the intricate details of their policy which can later be a headache. Let’s take a look at the consequences an accident can have on your car insurance renewal.
Car Insurance Renewal After Accident
If you have had an accident, renewing your policy can be tricky. Legally, as per your insurance policy, you must report any accident, even if it’s a minor one, to the insurer. A lot of people do not report minor bumps because there is not much damage or costs, and filing the accident with the company would be time-consuming, tedious and result in troubles later.
Third Party Claims - If the company is liable to pay third party claims, then your insurance premiums can increase significantly upon renewal.
Free Pass - Insurance companies may give you a free pass on your first “at fault” accident. In this case, your premium and policy will remain the same. When you are shopping around for insurance, this is a good point to remember to ask the agent. Always find out if there is an option to buy an endowment which will cost a little extra, but will get you forgiveness for your first accident which was your fault.
Hit-and-Run - For collision cases in which the other driver was at fault but disappeared, your claims will not affect the premium at the time of renewal.
Surcharges - Companies may also impose surcharges on your policy. If you face surcharges, you can ask your agent for how long will the surcharge be applicable. Usually, companies drop the surcharge after 2 years or so, if you have not caused any accident in that period.
Car Insurance Renewal After Claim
Having a made a claim on your insurance policy will affect its renewal, but there are many things to consider here.
Non-fault Claims - If the accident was not your fault, you can file a claim, and the insurance company will try to recover the costs from the other driver’s insurance policy. These claims do not have much of a negative impact on your renewal. However, you could stand to lose the whole or part of your No Claim Bonus. In the event that your insurer is not able to recover the costs from the third party, then the case might be considered a “fault claim”. In all cases, your premiums can increase by around 30%.
Non-accidental claim - If you have made a claim in the event of vandalism, fire, theft and so on, this will not affect your premium when you renew your policy. But if you file multiple claims, this can affect your eligibility for claims-free discounts. If the claims rate is too high, your policy can be terminated.
Fault Claims - Claims in which your insurance company has to pay third party damages can increase your premium significantly upon renewal. Only in cases where you are granted forgiveness for the first case will your premiums remain the same.
Car Insurance Renewal with Outstanding Claim
Many times claims take months to be processed and disbursed. Sometimes claims are outstanding when you have to renew your policy. This can complicate things for both yourself and the insurance company.
As the company is still investigating your claim, you might be found at fault in the accident. In the case of insurance, you’re guilty until proven innocent. This can increase your premiums. But there’s no need to worry about this. After you renew your policy, wait till your claim is settled. Once it’s confirmed that it was a case in which you were not at fault, you can talk to your insurer and get your premiums lowered. The extra money paid will be adjusted.
Advantages of Online Car Insurance Renewal- Beat the Rush, Save Time and Patience
Renew motor insurance online to save time, any additional monetary inputs and your patience. In today’s fast paced world, most of us do not have the time or inclination to visit a physical outlet and renew our respective car insurance policies. Instead, we will prefer the simplicity and immediate reach afforded by the car insurer’s online portal. Broadly speaking, the following are the most obvious advantages of online car insurance renewal-
Save Time- Renewing motor insurance online takes less time, and definitely doesn’t erode your patience.
Hassle Free Process- Unlike visiting an actual outlet of the insurer, the online car insurance renewal process is simpler and quicker. Plus, there are no documents to submit or verifications to affect immediately.
Available 24x7, 365 Days a Year- Renewing car insurance online is always an option. From the comfort of your home or office, renew your policy wherever and whenever you feel upto it.
Do Not Wait- Often, the insurance policy expires and a lag exists before you renew the same. With online car insurance renewal, this isn’t a problem anymore as you are served an e-copy of your updated policy instantly. Take a printout, enjoy peace of mind.
No Documentation- Online renewals involve little to no documentation. Usually, the concerned documents need only be produced at the time of a claim.
Safe and Secure- Car insurers are aware of the need to provide maximum security when it comes to the online collection of your personal information. Thus, they have built portals that are robust, secure and highly customer centric. Renewing your car insurance on these is not just a breeze, but quite an enjoyable experience too.
Hence, it definitely makes sense to utilise the safer, smarter and simpler online route when renewing your car insurance policy than opting for the traditional way involving long queues, less patience and greater turnaround times.
Online Car Insurance Renewals- Three words, Simple, Fast and Click!!
When set to renew motor insurance online, it’s all a matter of clicking a bunch of pre-designated buttons. Your chosen car insurer has simplified this flow by keeping the entire process limited to a short number of steps. A login followed by clicking on the clearly marked ‘renew’ button. As is the norm, specific information pertaining to your current policy and about your own self needs to be furnished, that’s it.
Most Important Points to Consider Before Renewing Car Insurance
Keeping your car insured all the times is a must. Not only from a statutory point of view, but also to safeguard against unwanted expenses in case of an accident or mishap. Do watch our for renewal notice from the insurer in the form of letters or emails and ensure renewal before the due date to avoid unwanted expenses in the form of re inspection charges. Renewing car insurance can be tricky sometimes. Be it the sophisticated breakup of premium amount or insurance jargons, it may put you in a mental fix.The top three things you must consider before renewing car insurance have been explained below.
The proposed premium can be further brought down by negotiating with the company representatives such as agents or customer service. Get in touch to see how they can help you in reducing the premium amount in the form of discounts on the overall value or by eliminating add on options such as “zero depreciation cover ”.
Consider Including Add on Options
In addition to the standard features and benefits, add on options enhance the policy cover. Look out for optional covers that suit your usage and ask for inserting them in the standard cover. Add on options come with certain cost.
Scan for Accuracy of Information
Look out for errors in the policy information and have them corrected before issuance. Renewal is the right time to update your contact and other details. Incorrect information may lead to denial or delay in processing claims.
What is lapsed car insurance?
A car insurance policy lapses when the insured does not renew the policy within the stipulated due date or renewal deadline. Generally it is required by policyholders to renew their existing car insurance policies on or before the given due date to enjoy continuity of coverage. Once the car insurance policy crosses the renewal date, any type of claim made will be deemed inapplicable, since the insured does not hold a valid insurance policy.
All car insurance policies are annual contracts that have to be renewed on a particular date mentioned in the policy document. Most policies mention the date and time the cover comes into effect and also its termination date. If an individual misses a due date and does not renew a car insurance policy, then there will be a break in the policy. What this means is that instead of just continuing with your existing policy, you will have to buy a completely new policy. Individuals might also lose all the benefits of their old policies and might even end up paying higher premiums to get new policies. The safer option would be to renew your existing policy on time without bearing the burden of extra premiums.
How do you renew an expired car insurance policy?
As soon as a policyholder crosses the renewal deadline, he should contact the insurer to check about the options available to renew the policy. Some insurers might not allow online renewals in this case and might require the insured to actually apply for a new policy.
Policyholders need to act fast when they realise that they have not renewed their existing policies on time. Some insurers might easily allow renewals like an existing policy if the time gap is not huge. But mostly, insurers will request policyholders to apply for a new policy and have them go through the entire rigmarole again. Also for the lapsed period, insurers will not provide any kind of coverage or financial assistance and will not process any claim settlements.Other Impacts
Third party coverage is generally not impacted by lapses as this is mandatory by law. Most insurers renew this aspect of car insurance very easily. Insurers might charge additional rates for providing coverage for Own car damages, following the policy lapse. Since they would be considering this as an entirely new policy, they may not pay for pre-existing damages and any claims made during the lapse period will also not be considered.
If a car insurance policy is renewed on time, policyholders are generally entitled to No-claim bonus amounts, provided they have not made any claims the previous year. However if a policy lapses, then insurers have the authority to either reduce the NCB amount or completely cancel it. This could mean that policyholders will have to pay higher premiums when they eventually renew their car insurance policies. Letting a car insurance policy lapse also gives an insurer the leeway to further refuse coverage or even a new policy, if the vehicle is too old or damaged.
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Car Insurance Renewal FAQs
- How can car insurance renewal help me?
- What if the insurance policy is not renewed within the term? What are the options?
- What if I get my car fitted with new accessories? Do I have to wait for the policy renewal or can I get them insured right away?
- What is an Add On cover?
- What are the details required for car insurance renewal policy?
Car insurance protects you from theft, burglary, accidents, third party legal liabilities or any other natural calamity. Car insurance policy renewal ensures that you continue to enjoy these benefits and makes your life hassle free.
An individual may obtain a new policy for the expired one. However, the company representatives would be inspecting the car prior to issuing a new policy. It is advisable that one keeps track of the car insurance renewal date and get it renewed on time.
You can avail insurance for the new accessories during the current term. You need to send a written request to the customer care department and they will take it forward from there.
The Add On cover adds some extra features to your general insurance policy. Some of them are No Claim Bonus Retention Cover, Voluntary Deductible and Nil Depreciation Cover.
- Your name (As on official documents)
- Your contact number and e-mail id
- Your vehicle registration number
- The existing policy number of the car