You must understand that an automobile insurance policy is valid and you must renew it before the end of its validity. According to Indian laws, it is mandatory to have a car insurance policy and it is equally important to renew it on time.
Reasons to renew your auto insurance policy on time:
It ensures you get continuous coverage
It is very important to have a car insurance policy in case you need to provide financial coverage for your car. If your vehicle is insured, you get other benefits like no-claims premium, zero depreciation coverage, cashless repair facility, and more. However, you can get auto insurance coverage for the duration of your policy. You need consistent coverage for your car, and the only way to get it is to renew your car insurance policy before it expires.
To follow the laws of the motor
According to car laws in India, every car must have a valid car insurance policy even if it is third party cover. This means that your car must be permanently covered by insurance if you use it on public roads. You won’t get any coverage if you don’t renew your insurance on time. Also, you are breaking Indian motoring laws if you are driving a car with expired insurance policy.
Avoid financial responsibility
You get coverage from your car insurer if your car is damaged or has suffered losses. If it was your car that suffered the damage or if you caused damage or injury to other people, your insurer will cover the financial liability. However, if you do not renew your insurance policy before it expires, your car insurer will have no legal obligation to cover any type of financial liability arising from your car.
No claim bonus would be intact
If a car owner does not raise any type of car insurance claim in the previous year, the car insurance company will reward him with a no-claim bonus. You get a discount when you renew your insurance policy when you use a claim during the insurance year. No claim bonus can be accumulated and the minimum you can get is 20%, but you can also lose it if you do not renew your policy for a period of more than 90 days after it expires.
It guarantees that you get a renewal without any difficulty
You don’t have to go through a vehicle inspection if you renew your car insurance policy on time. Your insurance company would consider you a carefree car owner, and you may need to go through a vehicle inspection when trying to renew your car insurance policy after a period of time. Having your car inspected would be an unnecessary hassle and hence it might reduce the insured value of your car and also increase the premium amount.
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