Timely car insurance renewal: Why it is crucial for every vehicle owner
Source: Business Standard
Car insurance provides financial backup in case of accidents, theft, and damage. Renewing it in time is important, and failure to do so can lead to penalties, loss of financial protection, and increased premiums.
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In India, where the Motor Vehicles Act mandates that every vehicle must have at least third-party insurance coverage, timely renewal is crucial. Whether navigating the busy stretches of a city or the bumpy roads in rural areas, a valid insurance provides peace of mind.
Why lapsed insurance may not be a good?
Driving without valid insurance in India can lead to hefty fines, with penalties increasing for repeated offences. In some cases, vehicle owners may even face imprisonment for up to three months for failing to maintain insurance coverage.
If your policy lapses, and you’re involved in an accident, you could be held personally liable for any damages or injuries. This can lead to severe financial losses, as you would have to cover expenses out of your own pocket.
Here’s how timely renewal protects you:
Coverage for damages: Comprehensive insurance covers a wide range of risks, including accidents, theft, fire, and natural disasters.
Third-party liability: Third-party insurance covers damages or injuries to others involved in an accident caused by you. Without a valid insurance, these costs would fall on you directly.
No claim bonus (NCB): You get ‘No Claim Bonus’ on timely renewal, which is a discount on future premiums for claim-free policy periods. Letting your policy lapse can cause you to lose this valuable discount.
Additionally, many insurers impose extra fees or penalties for renewing a lapsed policy. Avoiding these costs is another reason why timely renewal is critical.
Protect your driving licence
Your car insurance policy is closely tied to your driving licence. Driving without valid insurance not only results in penalties but can also lead to suspension or cancellation in extreme cases.
Simplified renewal process
Renewing car insurance has become very easy, thanks to online platforms. Most insurers offer online renewal services, allowing you to complete the process from the comfort of your home. Online renewal also allows you to compare policies and choose the best coverage for your needs.
First Published: Oct 01 2024 | 4:45 PM IST
