Car Insurance Renewal: Why Should It Be Done On Time?

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Car insurance, as you know has to be renewed on time. Failing to do so will attract a lot of trouble for your car or vehicle, third party, and even to yourself.

To keep things simple, let's say in an unfortunate incident that you have met with a small accident, that has involved another vehicle. Both vehicles have been damaged and the other vehicle owner demands you to pay since it was your fault, but, you think it was his fault. This is a classic case of an ‘Accident', in which both are wrong and right at the same time.

In a case like this, is when an insurance comes in handy, and also, renewal on time saves you as well as the other motorist, bearing the cost of damage for both the vehicles. Another important factor is that in case either one sustains an injury, the insurance will take care of that as well as property damage, if you have run over a small fence or into somebody's gate.

Is that all? No. Here are some more reasons why vehicle insurance has to be renewed on time:

1. You might have to buy a new policy itself.

Yes, if the insurance is lapsed and has not been renewed after a period of time, you will have to shell out more to buy a new policy, even if it is from the same insurance company. Insurance providers have a set time frame before which the policy has to be renewed, and failing to do so will lapse your policy itself.

2. You might end up paying a fine.

Some insurance companies might ask you to pay a fine for the number of days your vehicle runs without a renewed policy. That will only be a waste of cash. To avoid that, a simple way is to renew it on time.

3. Keep the police away.

You will be fined for not having a valid insurance for your vehicle. Using a car or a motorcycle on public roads needs a valid insurance certificate. In other words, you are committing a crime, a traffic violation that is punishable under the law. Insurance should be renewed on time.

4. You could lose benefits.

This is another important reason to renew the insurance. Companies give benefits and one major benefit is the No-Claim Bonus (NCB), which is awarded if you have not made claims in the past. This can be added up over several years and while renewing the policy, you could get up to 70 percent off on your premium. If the policy is not renewed on time, however, you could lose benefits and end up paying a lot for your insurance policy.

So, keeping the above reasons in mind, rush to your nearest insurance provider or grab that laptop and renew your insurance policy now!

Also Read: Car Insurance Renewal Do's And Don'ts

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Read more on: #insurance #tips #car talk
Story first published: Friday, October 16, 2015, 16:35 [IST]
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