Purchasing third-party car insurance is mandatory but purchasing comprehensive car insurance is necessary. Third-party insurance provides cover for third-party liabilities only but comprehensive car insurance provides cover for all kinds of casualties. However, be it third-party or comprehensive, both come with an expiry date. If you fail to renew the policy on time, it can put you under financial burden at the time of any road accident.
Even then the insurer not just cancels your insurance policy but provides a little bit of time known as a grace period to renew your policy. This way they try to encourage people to keep their cars insured. So, what is the meaning of a grace period?
Grace period is a certain specified period of time that is provided by the car insurance company for you to renew your policy after the expiry date of your plan. You can even enjoy the benefits of the No Claim Bonus during this period that you might have earned in your previous years for not raising claims.
Let me explain how? So if you have earned a certain percentage of discount on your premium amount for not raising a claim your previous year then that discount will be applicable if you renew the policy during the grace period. However, you won’t be able to raise a claim during the grace period.
Even though you get the extra time to renew your policy, it is important to keep your car insured at all times because unforeseen situations like cyclones, riots, theft, etc. might take place. If you make sure to keep your car insured at all times then you will get financial aid for any unforeseen loss or damage. Also, the insurer will not send anyone to inspect the vehicle if you renew the policy before the expiration date.
Grace period in a car insurance policy is usually 15-30 days. It depends on the terms and conditions of the policy of your insurance company. You can also renew your policy after the grace period but you will have to pay an extra amount.
Here are some of the reasons for not renewing the policy on time.
Here are some of the benefits if you renew the policy on time.
Let us now tell you how can you renew your policy online.
You can utilize the internet and renew your insurance policy online. Here are the steps to renew your policy online.
If you do not renew your policy on time then the insurer will provide you the benefit of a grace period. If you do not renew the policy within the allowed grace period then the insurer will send an inpector to inspect your car.
You will have to provide your car insurance details and car model. Once the inspection is done, the insurer will generate a quotation to insure the car.
There are certain things that you will have to keep in mind in case your insurance policy expires.
It is important that you renew your policy on time for continuous coverage and hassle-free services of your insurer. Not renewing the policy on time car brings a lot of difficulties towards you. Since it is easier to renew your insurance policy online, insurance experts recommend purchasing the policy online as apart from renewing the policy you can calculate the premium rates and compare different plans while sitting at the comfort of your home without any kind of hassle.
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