Why should you do Car Insurance renewal even when the vehicle is not in use?
We spend so much on our vehicles. Be it essentials like motor upgradation and fuel or aesthetics like interior designing, repainting, engine optimisation, etc. These modifications do not come cheap, but you still do them. Some of them are not even necessary. But there are no qualms about it. However, when it comes to Car Insurance, people consider it as an unwanted expense.
It gets treated as an obligation due to the Motor Vehicle Act’s mandate. But have you ever thought, why is it a compulsion? Most road safety rules like this one are for your safety. The law wants you to protect yourself and others from damage. Hence, it enforces you to wear a helmet, follow traffic rules, and avoid drunk driving.
But what happens when your four-wheeler is not in use? Do you still need the Insurance? It turns out you do due to the following reasons:
Having Motor Insurance is a compulsion in India. Although its purpose is to protect you on roads, the rule does not limit to that. Hence, you must continue its validity when the policy lapses. This is usually every year with the standard plan. As for the Long-Term Four-Wheeler Policy, you must renew after three years. If you fail to do this, your coverage ceases to exist. This puts you in jeopardy when you take out your vehicle on roads, even if occasionally.
Retaining No Claim Bonus
Policy providers appreciate responsible drivers. Owing to this, they reduce the premium costs when you have anti-theft devices installed. They also consider your driving record while determining the amount. Adding to this convenience, they also give a reward called NCB. It is a discount for completing a claim-free Insurance period that ranges between 20%-50%. You get to use it during Car Insurance renewal.
Not renewing your policy after expiry makes it lapse. It becomes a concern when you want to restart your vehicle. If it is too late, you lose the chance to renew it. The only way to stay insured is to apply for new Insurance. This involves going through the process from scratch. Reviewing insurers, asking queries, visiting insurance agents, completing documentation, etc., add to the cost.
Damages do not always occur on roads. They also happen when you leave the automobile unattended. Precisely why the Four-Wheeler Insurance covers extensive damages. It protects your vehicle against damages from cyclones, earthquakes, building collapse, fire, theft, etc. It also covers expenses when someone crashes into your parked car. These aspects make online Car Insurance renewal essential.
Another reason for renewing Insurance is to ensure smooth continuity. When you renew the policy before expiry, the process gets completed within minutes. But when you let it lapse, insurers inspect your vehicle again before renewal. This is a standard protocol, and usually, there are no concerns. But when you have an unused vehicle without valid Insurance, there is advanced scrutiny. This affects the premium amount. You get to avoid this by renewing.
Continue enjoying benefits
Throughout the Insurance period, you accumulate various benefits from the insurer. They depend on your coverage selection. But typically, you get riders, No Claim Bonus, Cashless Garage Facility, easy claim procedure, etc. Extending the validity through Car Insurance online renewal lets you continue enjoying them. Moreover, the renewal process is convenient and hassle-free online. You also get reminders for the same for convenience.