Covid-19 has profoundly impacted the world in many ways. One of the most significant implications was the imposition of lockdown throughout the country. As a result, you might not have gotten a chance to use your car for weeks and are wondering if you should get your car insurance renewed.
Well, it is essential to avoid car insurance lapse and get on with the renewal process. There could be many repercussions to a non-renewal. Here are some reasons to renew your car insurance right away, if it’s due:
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Renewal is Critical
If you let the car insurance policy to lapse, you will end up facing a financial challenge. The expenses can be averted if you realize how important a timely insurance renewal is. Many insurance providers may reject your car insurance renewal if the insurance lapse period is significantly high. Otherwise, regeneration may be allowed, but with some fines and penalties.
Legal Hassles
Driving with expired car insurance is a legal offense. The Motor Vehicles Act mandates a bare minimum of third-party liability policy requirement for all car owners. If you, in an event, attract traffic officials’ attention, you will have to pay stiff penalties.
An expired insurance policy is akin to a lack of car insurance. And, in case your car gets damaged, or you get injured due to an unforeseen situation on the road, you may require fighting a protracted legal battle and even experience financial strain. Without any car insurance coverage, you will become ineligible to claim anything for damage or loss.
Zero Protection
If you have car insurance, it protects your vehicle and even injury to yourself or a third party. Mistakes are prone to human nature, and if there is a mishap and a third-party vehicle gets damaged or gets injured, it is essential to have car insurance. It will free you from all the financial obligations. Hence, with a lapsed policy, the coverage ceases, rendering you financially vulnerable in such events.
Prospect of Car Introspection
In case of rejection of car insurance renewal, you may have to apply for a fresh policy. And, in such a situation, most insurance companies demand an introspection of your vehicle before issuing a new policy. Based on this inspection, a report is submitted to the concerned officials. Then, after scrutinizing and finding it satisfactory, a new car insurance policy is issued. It is an inconvenient and time-consuming process.
High Premium Amount
During the renewal of your lapsed car insurance policy, you will be asked whether your plan has expired or not. Some insurance companies ask this question to determine the premium amount of your previous plan. With the timely renewal of policies, you can get lower premiums. However, if your existing policy gets lapsed, they might charge you a higher premium on a new policy.
Loss of No Claim Bonus (NCB)
Most insurance companies give a no claim bonus as an incentive for safe driving. In case you do not make any claim in the policy year, you can get an NCB discount during the policy renewal. You can accumulate this discount for years.
However, you can avail of the NCB only if your policy is renewed on time. In an event where your car insurance lapses and you do not renew it within 90 days from the expiry date, the entire accumulated NCB will be negated.
Avoid Car Insurance Lapse
The reasons mentioned above clearly state the necessity of renewing car insurance on time. However, if you want to purchase a new car insurance policy, do it online.
A significant benefit of buying car insurance online is that you can purchase it from the comfort of your home. Also, considering the current situation of COVID, it would be the ideal option to prevent you from stepping out.
You will find that reputable companies like Tata AIG have an easy and efficient online buying procedure for car insurance. If you are unable to understand the technicalities, you can contact their 24×7 customer service helpline. They will guide you through the procedure.
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