No car insurance policy is valid for life. There is always an expiration date. In the case of most policies, the expiration date is one year from the date of purchase of the plan. The Insurance Regulatory and Development Corporation of India (IRDAI) continues to introduce new regulations for policies with a policy term of more than one year or more. You can visit the official website of IRDAI for further details. However, regardless of the policy term, it has a fixed expiration date. An expired policy means termination of coverage. So, if you want to continue enjoying insurance coverage, you need to renew the policy at the end of each term. Here’s why it is important to renew your car insurance policy in a timely manner?
- Continuous coverage
The urgent nature of car insurance has been emphasized in many cases. First time car buyers often hear that buying a car insurance policy is a good thing from a legal standpoint. But, just as important as buying a policy is the renewal of car insurance. You cannot just buy a policy once and then not having to do anything to have lifetime coverage. If you want uninterrupted coverage, you must renew the policy at the end of each term. *
- Avoid legal issues
When it comes to legal issues, it is better not to drive with an expired insurance plan than to risk it and drive without insurance coverage. When a traffic police officer stops you, they will not only check if you have a policy but will also check if the said policy is valid. The policy should be valid if you want to avoid legal issues. If found without a valid insurance policy, you will have to pay a hefty penalty. You could also face jail time for repeated offenses.
It is advisable to go for car insurance renewal a few weeks before the due date. Unfortunately, if your car insurance expires and you only find out about it when a police officer catches you, there is no way to protect yourself from penalties. *
- Avoid financial liability
If your car is involved in an accident and causes damage to a third party, it is problematic not to renew the third-party liability component in your car insurance plan. In such a case, if the policy is not renewed, the insurance company will not be liable to cover you for your financial and legal liabilities. This means that you have to handle the responsibility of the third party on your own. Depending on the physical damage or property damage to a third party, the amount you may have to pay in compensation may be very high. So, you need to make sure that you buy and renew third party car insurance online as soon as possible. *
- No coverage for own damages
Failure to restore the own damage component of a four-wheeler insurance policy can leave the car in trouble. Since the policy has expired, you will have to settle the garage bill yourself without the involvement of the insurance company. This means that you will have to set aside large sums of money to repair your car or simply wait before you can save up money to repair your car. * Hence, it is better to spend on renewal at the right time instead of spending much more at the time of repairs. A car insurance calculator will help you understand the difference. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
* Standard T&C Apply