How To Renew Car Insurance?

by SMCIB on Friday, 17 May 2024

How To Renew Car Insurance?

Imagine you are driving down the road when suddenly, out of nowhere, another car rides into your lane and bumps into your car. You feel devastated as you realise your car is damaged and the repairs are not going to be easy on your pockets. However, at the very same moment, you feel grateful for one thing – your car insurance. It acts as a shield that protects you from the unexpected, covering the repair costs and keeping your finances safe.

But here's the catch – getting car insurance is not a one-time deal. Just like you need to renew your gym membership to keep getting floor access, renewing your car insurance on a timely basis is crucial. Renewal ensures that you stay protected against accidents, theft, or any other mishaps on the road. If you want to know more about the nitty-gritty of renewing your car insurance and why it is so vital, keep reading. We have got all the details you need to ensure your car stays protected year after year.

First, let us understand the basics –

What Is Renewal?

Car insurance renewal means continuing your current policy for another term, typically a year. To keep your coverage intact without any disruptions, it is important to renew it before your current policy ends.

During renewal, you also have the chance to check and adjust your coverage, remove or add any required add-on for better coverage, and update your policy as needed. Renewing on time is vital to avoid gaps in coverage, which could result in legal trouble or financial strain if something happens to your car.

Importance Of Renewing Your Car Insurance

Here are a few reasons why renewing your car insurance is essential –

  • Compliance With The Law
    In India, having at least a third-party car insurance is mandatory based on the Motor Vehicles Act of 1988. Renewing your car insurance keeps you on the right side of the law, preventing penalties for driving uninsured.
  • Financial Security
    Car insurance shields you from financial setbacks caused by accidents, theft, natural disasters, and unexpected mishaps. Renewing your policy guarantees that you maintain this safety net without interruptions in coverage.
  • Safeguarding Yourself
    Car insurance not only protects your vehicle but also provides personal accident coverage for you as the owner-driver. This means financial assistance in case of accidental death or disability. Keeping your policy up-to-date ensures this protection stays intact.
  • Covering Third-Party Risks
    Third-party insurance takes care of your responsibility towards others for any injury, death, or property damage caused by your vehicle. Renewing your policy guarantees you remain shielded from legal and financial obligations towards third parties.
  • Maximising No Claim Bonus (NCB)
    Renewing your policy lets you keep or transfer any accumulated No Claim Bonus (NCB). NCB is a discount on your premium given by insurers for each claim-free year, resulting in lower premiums for future years.
  • Peaceful Driving
    Renewing your car insurance provides peace of mind, assuring you are shielded from financial losses caused by unexpected events. It lets you hit the road confidently, focusing on enjoying your journey without worry.
  • Continued Benefits
    Some car insurance plans come with extra benefits/features like roadside assistance, coverage for consumables, etc. Timely renewal of your policy means you can carry on enjoying these added benefits.

How To Renew Your Car Insurance?

Just like any other type of insurance, your car insurance also needs a yearly renewal. Let's understand the steps to renew your policy smoothly –

Step 1: Assess Your Existing Policy

You can begin the renewal process by checking out your current car insurance policy. Understand what it covers and any extra features it offers.

Step 2: Explore Your Options

Unlike health insurance, you are not required to stay with one company for car insurance. Hence, you can take the time to look into different insurers. Compare what each insurance provider has to offer in terms of coverage, premiums, add-on benefits, and customer service. This way, you can make sure you are getting the best deal for your needs.

Step 3: Evaluate Your Insurance Choice

Decide if you want to stick with your current policy or explore options from a new insurer.

Step 4: Gather Essential Documents

Keep important paperwork ready like your current insurance policy, registration certificate (RC), and personal information. These documents will be needed for a smooth renewal or policy switch.

Step 5: Access The Insurance Company's Website

Most of the insurers provide online renewal services. Hence, you can simply head to the official website of your insurance provider.

Step 6: Select Your Renewal Path

Look for the renewal section on the website, often labelled as "Renew Car Insurance" or something similar. Click on this option to move forward with your renewal process.

Step 7: Input Vehicle Details

Fill in your vehicle registration number, details of your previous policy, and any personal information needed.

Step 8: Choosing Optional Extras

If you want to boost your coverage, select optional add-ons like zero depreciation, engine protection, roadside assistance, etc. to tailor your policy to your needs.

Step 9: Review Information

Take a moment to double-check all the details you have entered. Make sure everything is accurate, including your contact information.

Step 10: Calculating Your Premium

The website will automatically calculate your premium based on your vehicle's information and any add-ons you have selected.

Step 11: Completing Payment

To pay the premium, select a payment method that is convenient for you, such as a debit/credit card, net banking, or another option.

Step 12: Receiving Your Policy

Once your payment gets processed successfully, you will receive a confirmation email along with your renewed policy document. Hence, you should keep an eye out for it in your inbox.

Factors To Consider Before You Renew Your Car Insurance Policy

Here are a few key considerations for car insurance renewal –

  1. Assessing Policy Features
    You should take a close look at the features of your current car insurance policy before renewing. Evaluate whether your existing coverage meets your needs or if you require additional protection. You can also consider any extra add-ons that are necessary for your current situation.
  2. Comparing Insurance Quotes
    Explore the various policies available from different insurers. While sticking with your current provider might be easy, it is usually a smart move to compare quotes from multiple companies. This way, you can discover better features and coverage options at more competitive rates.
  3. Selecting The Right Cover Amount
    When renewing your policy, ensure the cover amount meets your requirements. This amount represents the maximum payout you will receive if your car is stolen or totalled. This is why you should avoid picking a random figure; instead, estimate your car's second hand value and choose a cover amount close to it. This way, you can prevent significant losses in case of theft or severe damage.
  4. Renewing On Time
    Last but not least, do not forget to renew your car insurance before it expires to prevent any lapses in coverage. This ensures you stay protected without interruptions.

To Conclude,

Renewing your car insurance is essential for staying protected on the road. By following these simple and seamless steps, you can ensure continuous coverage for your car and better peace of mind. Also, ensure you review your policy, compare quotes, choose the right cover amount, etc., during policy renewal. With careful consideration and timely action, you can confidently renew your car insurance and drive with confidence, knowing you are covered against unexpected events.

Insurance Knowledge Videos