Car Insurance Renewal Made Simple

Suppose, it is the weekend and you have planned a road trip with your family. You are on the highway and suddenly, your car breaks down in the middle of the road. But but but! You are all calm because you know you have got a roadside assistance add-on in your Motor Insurance policy. You try to avail it, but the insurance company tells you that your policy has lapsed. This is when it makes you panic that you have forgotten to renew your policy and now, you have crossed the expiry date. You realise that in the absence of an active Motor Insurance policy, the expenses incurred on repair and retrieval of the car from the highway are now to be fully borne by you. This is the kind of financial and mental stress we hope you never have to bear.

In this article, let’s understand the intricacies of Motor Insurance renewal, so that such difficult situations can be aptly avoided.

So, What Is Renewal Of Motor Insurance?

Every insurance policy comes with an expiry date. Once a gets policy expire, you are not eligible for any compensation and you cannot claim anything from the insurer in case of any accident or mishap.

To keep your car protected under the Motor Insurance policy, you need to renew your insurance. In simpler terms, Insurance Renewal is a method to extend the services of your insurance policy before it expires.

Talk To Our Insurance Expert To Renew Your Policy

Importance Of Motor Insurance Renewal

Here are a few reasons why you should renew your policy by the due date -

  • Car Insurance Is Legally Mandatory

    As per Motor Vehicles Act 1988, every vehicle should have a valid Motor Insurance policy . If you are driving a car with a lapsed policy, then you have to pay the legal penalties.

  • To Be Covered Always

    Renewing your insurance policy on time ensures you are financially protected in case your car faces any accident, theft, or damage.

  • To Avoid Buying A New Policy

    Buying a new policy is far more expensive than renewing your existing one. Also, renewal is far more convenient and saves your time.

  • To Safeguard Your No Claim Bonus

    If you have not made any claim in your previous policy tenure and you renew it on time, then you get a No Claim Bonus discount. NCB is a discount you get on your policy’s own damage premium amount at the time of renewal. Post the policy expiry, the grace period to renew the policy will be 90 days. Not renewing a policy within 90 days of the policy expiration means giving up on your NCB.

  • To Avoid Break In

    If you miss a renewal, your policy lapses. The time duration between the policy expiry date and the date of renewal is called the break-in period. Driving your car during the break-in period may lead to legal and financial implications.

  • To Avoid Inspection

    Most of the insurers require the vehicle to be inspected post the expiry date even if the policy if the renewal is delayed by a day. At the time of the inspection, any existing damages to the vehicle won’t be covered. The insurer might deny covering the existing damages or they might reject your insurance altogether and ask you to get the vehicle repaired first and then raise a renewal request again.

Show More

What Is The Process Of Motor Insurance Renewal?

Generally, you are duly informed by your insurer when your existing insurance policy is about to get expire.

  • If you wish to renew your policy, you need to contact and inform your insurer through call or mail.

  • You need to share with your insurer all the details about the current condition of your vehicle.

  • Your insurer will analyse and inform you if any physical inspection of the car is required or not. An inspection will be required if -

    the policy is expired,or

    any addition has been made to the car which you need to insure, for instance, a newly installed CNG kit

  • If inspection is required, the insurer will ask for an appointment as per your convenience.

  • You have to coordinate with the Inspection Inspector and provide them with your car insurance documents.

  • After inspection, the insurer will share the premium amount and you will have to pay the renewal premium amount.

  • Post payment, you will receive all policy papers from your insurer.

  • If you want to switch your insurer at the time of renewal, you can contact your preferred insurer before the policy expires.

  • Some insurers might also send you a renewal link via email, SMS, or WhatsApp. You can easily renew the policy using the link.

Show More

What Happens If You Miss Your Renewal?

Earlier we spoke about why it is important to renew your policy on time. But, what if you miss renewing your policy?

Most insurers send renewal reminders 25 or 30 days before your policy expiry date. These reminders are sent to the registered email ID and mobile number. Many insurers also give you a call to remind you of your renewal. If you somehow miss all these reminders and miss your renewal, your vehicle will be without a cover till the time you renew your policy.

To renew your policy after it has expired, you will have to get your vehicle inspected first. If at the time of inspection, there are any cracks or dents on your vehicle, the insurer may either reject your renewal and ask you to repair your vehicle and re-inspect it or the insurer may refuse to cover the already existing dents/cracks during any future claims.

Here are a few other consequences you may face if your policy expires -

  • If you renew your vehicle after 90 days of the expiry date, then any accumulated No Claim Bonus will be lost.

  • If any claim arises during this time duration, the insurer won’t cover your repair expenses. You will have to pay for the same out of your pocket.

  • If both your own damage and third-party policies are expired and you are caught driving your vehicle without valid insurance, you may also have to face legal repercussions.

Hence, missing out on your renewal is not a good idea.

What Can You Do To Not Miss Your Renewal?

Here are a few helpful tips that you can follow to avoid missing renewal dates -

  • You can always set a reminder on your smart devices so you never miss a renewal.

  • Make sure that the email ID and the phone number that you have registered with the insurance company are active. If you change your email ID or your phone number, inform the insurance company and get the same rectified in the policy copy.

Things To Consider Before Renewing An Insurance Policy

  • Coverage

    Ensure that you pick the right Insured Declared Value for your vehicle. Instead of going for any random IDV value, find the second-hand value of your car from a credible source, and ensure you fix your IDV around this value.

  • Add-ons

    Add add-ons as per your needs so you get extra coverage and are protected against any odds in the future.

  • Type Of Policy

    Understand the type of policies available in the market and select a type as per your requirement. For example, if you have a third-party insurance policy and you want better coverage, then you can go for a comprehensive policy or a stand-alone own-damage policy.

  • Claims And Customer Support

    Make sure the insurance company has a proper claim and customer support system in place so that you do not have to run from pillar to post when any problem related to the policy or a claim arises. You can always change your insurance company at the time of renewal if you are not satisfied with their services.

  • Premium

    Before finalising a policy, make sure you compare the quotes online so that you can get the best policy with adequate coverage and premium that fits your pocket.

  • Renew the policy on time

    To avoid any issues in the future, make sure that you renew your policy on or before the policy expiry date.

  • No Claim Bonus

    If you have not made any claims in your policy period, you will be eligible for a No Claim Bonus. Ensure that you enter the correct NCB while renewing your policy.

A lot of people avoid renewing their policies as they believe they will never get to use them. They do not give enough importance to a motor insurance policy until they face a crisis themselves. This policy plays a huge role in safeguarding you and your car against financial and legal liabilities. The way you set reminders to not miss your friends’ birthdays, it is equally important to remind yourself to renew your policy before expiration. As it is said, precaution is always better than cure.

Get your car insured now
Get Your Car Insurance Premium Now
Questions about Car Insurance

Frequently Asked Questions

You can drive your vehicle if your policy is expired, but this is not advisable.

  • If your own-damage policy is expired and you have a third-party policy in force, you may not face any issues while driving your vehicle. But, in case of an accident, any damages that happen to your car will not be covered and you will have to bear the expenses yourself.

  • If your third-party policy is expired and you are caught driving your vehicle without insurance, you may face legal repercussions.

No, if you renew your policy after 90 days of the expiry date then any no-claim bonus accumulated in your policy will be lost.

No, changing to a different insurer at the time of renewal will not impact your No Claim Bonus. All you must do is declare the correct NCB at the time of renewal.

If you meet with an accident when your policy is expired, any damages caused due to the accident will not be covered by the insurance company. You will have to bear the repair charges yourself.