According to the Motor Vehicle Law, one cannot drive on the roads of India without having a valid and active auto insurance policy. Having at least one third party liability insurance is mandatory to be legally allowed to drive on Indian roads. Having said that, auto insurance policies come with their validity and expire after a certain period (i.e. the term of the policy).
It is highly necessary to renew auto insurance plans on time in order to ensure stress free driving. Also, driving with an expired auto insurance policy is the same as not having an insurance plan.
To learn more about it, we’ve highlighted the top five reasons why you should renew your auto insurance and that too on time. Scroll down to learn more about these reasons:
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Reason # 1: To Enjoy the Benefits of Continuous Plan Coverage
For coverage to be active and valid, it must be renewed on time. If the policy is approaching the expiration date, one should make sure to renew it before it to ensure that they get the necessary coverage and benefits from the plan. In addition, failure to renew on time may result in discontinuity of benefits and prevent the insured from benefiting from uninterrupted coverage.
In addition, having your car insured can save you from heavy financial losses that could occur in unprecedented accidents. It also avoids any legal liability in the event of bodily injury or death of a third party.
Reason 2: Avoid the discontinuity of the no-claim bonus
No Claims Premium (PNE) is the benefit that the insured would receive on zero claims during the term of the policy. This is a reward for safe driving and the bonus can be accumulated. In addition, the value of the NCB may increase if no claims are made for a continuous period of five years. However, if the insured does not renew the policy on time, he may suffer the loss of this accrued benefit.
Reason 3: Avoid paying higher premiums
Any interruption during the renewal period of your auto insurance policy may result in the payment of comparatively higher premiums. Also, you might have to buy a new auto insurance policy instead, which could lead to higher rates as you won’t be able to get any discounts, or even the insurance company might charge you more. for the history of the expired plan.
Reason 4: Easily switch to other insurers
This is another important benefit, especially for policyholders who are not satisfied with the services of their current insurer or their current plan. The renewal period can be a good option for you to easily switch to another plan or insurer that offers better benefits than yours. You can compare the different plans offered by different insurers to find the ideal option for you. This comparison can be done online.
Reason 5: Save the complicated experience
Failure to renew your auto insurance policy on time may result in the payment of penalties or the denial of claims. You may even have to look for another plan or insurer due to irregular renewals or an expired policy for a longer period. Hence, it is advisable to renew the policy on time to avoid such hassle.
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Now that you know the benefits of renewing your auto insurance policy on time, it is highly recommended that you renew on time to avoid any unpleasant surprises down the road. Renewing the policy on time also saves you money, time and effort. So if you are planning to buy a new plan then you should definitely consider timely renewal in the future, and if you already have an existing plan and missed the renewal date then hurry up and renew now ! It is better to do it early than to be too late.
The views expressed in this article are the personal opinion of Rakesh Goyal, Director, Probus Insurance.