Consider These While Renewing Motor Insurance before Extend-ed Deadline

A motor insurance policy has to be renewed after completion of its coverage tenure.  Amid the coronavirus pandemic a lot of customers are in two minds when to renew their motor insurance policy. The Insurance Regulatory and Development Authority of India (IRDAI) extended the deadline to renew motor insurance in June. It has now further removed the long-term third-party mandatory insurance cover from August 1, 2020, that will further reduce the premium cost. The Insurance Regulator has removed the mandatory third-party insurance clause, which will reduce the upfront motor insurance cost for the customer. But if you own a vehicle, its motor insurance policy should be renewed before the expiry date. If your policy is lapsed and is not renewed before the due date, any damage during that time will not be covered under your policy.

If you renew the policy after the extended expiry date (some insurers offer it and some don’t), the cost of premium will also increase. The insurance company will treat your application as a fresh application. The Motor Insurance Company may need to send a surveyor to check the condition of the vehicle.

If you buy insurance after the expiry date, the No-claim-bonus will not be applied by the insurance company. If you had not made any claim in the previous year, NCB will be applied while renewing the policy.

So, do not wait for reminder calls and emails from the insurer, and try to proactively renew your policy on time to avoid any delays and last minute stress.

If your car insurance policy is about to expire and you are looking for ways to help you renew it faster, then we are here to help you. Follow these handy tips to help you renew your car insurance policy in a hassle-free manner amid the lockdown conditions in the country.

5 Important Parameters to Consider While Renewing a Motor Insurance Policy-

A lot of people renew their motor insurance plans just so that their policy doesn’t get relapsed. However, the renewal gives you an option to modify your insurance policy as per your requirements. You can opt for additional features like roadside assistance, zero depreciation cover that were not a part of your motor insurance. The following factors should be considered before you renew your policy till the extended deadline:

    • Adequate Coverage

      The vehicle should be protected from various kinds of natural and manmade disasters. You should assess the risks covered by your current car insurance policy. You should consider add-on benefits such as roadside assistance, breakdown cover, rider cover, and similar services to enhance the coverage.

    • Legal Obligations

      It is mandatory to buy a motor insurance policy as per the law. If you are riding the vehicle on public roads, you should have a driving license and vehicle insurance policy.

      If you have bought ‘liability only’ policy, you can go for comprehensive coverage while renewing the policy. The policy premium for a comprehensive insurance policy is higher than a third-party insurance policy.

      However, it will offer complete protection to you and the passengers, including a third party (person or property). You can through the complete details of your insurance policy and get it customized as per your needs.

    • You can Opt for Discounts

      Insurance companies offer various kinds of discounts based on the risk measures taken by you. If you have installed accessories to improve the safety of your 2 wheeler, the insurance company may decrease the cost of the premium.

      You can avail No-claim-Bonus for not making a claim during the policy period.  If you hold membership with Automobile Association of India then also you are eligible to obtain discounts on the premium.

    • Compare Different Motor Insurance Plans

      Now that you have an extended deadline, before motor insurance renewal, you should explore better options.  You can also go for long-term insurance policy so that the premium will be the same for 2 or 3 years. When you buy a long-term insurance policy, you will not want to renew the policy on annual basis.

      You should request a quote from two or more reputed insurance companies. If you share complete information about your vehicle and personal details, you will get precise quotes from insurance companies.

    • Easy Online Motor Insurance Renewal

      Everyone prefers to follow the social distancing norms amid the COVID-19 outbreak and therefore most of the customers are opting for online motor insurance renewal. You can compare the features, price and claim settlement ratio of the insurance company on Policybazaars’ website. After finalizing the best insurance policy, you can renew the policy online. Some vehicle insurance companies may reduce the premium up to 5% if you pay it premium online.

      By renewing the insurance policy online, you can avail special discounts. The premium can be paid through various channels i.e., online banking account, debit/credit card, IMPS and NEFT as per your convenience.

      You can go through the information presented on the official website of the insurance company. The comparison of features across various insurance policies and price will help you settle for the best.

Offline Motor Insurance Renewal

If you want to renew your policy offline, you will have to submit the following documents-

  • The insurance renewal form (available at the insurance company office or agent)
  • Your driving license
  • Vehicle Registration Certificate
  • An old copy of your vehicle insurance policy

In India, there is a huge population who drives four-wheelers, and it is no less than a prized possession for them. There are different cars to cater to the various segments of our population starting from Rs 3 Lakh to Rs 50 Lakh and above. So, you can check motor insurance online to know about policies with a small premium for lower segment, as well as higher premium policies for expensive cars, which have costly body parts as well as the repairing cost is high.

Bottom-line

Merely renewing your motor insurance policy doesn’t suffice just because you will miss the renewal deadline doesn’t suffice. The right approach is to stay proactive and renew your car insurance policy before the due date and in a timely manner. Try to avoid the last minute chaos and make a well-informed decision. While renewing the policy, it really helps to go through the documentation to understand the inclusions and exclusions.

Written By: PolicyBazaar - Updated: 28 August 2020
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