When it comes to insurance, renewals are defined as the subsequent premium amounts paid by the policyholder to the company in order to keep the policy active and avail the benefits.
Car Insurance Renewal and Benefits
The future cannot be guaranteed. It changes every day. Nature takes on its course and all we can do is protect ourselves as well as our vehicles. Mandatory by law, car insurance renewals online not only are necessary, but also provide benefits such as:
- Protection against man-made or natural calamities in addition to third-party claims for damages incurred.
- Provides benefits to family members/dependents in cases of accidental deaths.
- Provides legal protection by covering against lawsuits in cases of accidents or damage caused by the third party.
- Covers damages caused by any loss of parts or theft of the vehicle.
- Additional discounts in terms of discount on premium amounts in cases of owning more than one policy with the same insurance company. This provides an added advantage by extending the coverage to others who drive the car with the owner’s permission.
- No claim bonuses are offered on renewals if claims have not been made during the previous policy tenure.
- Car insurance renewal policy also acts as a personal accident cover.
- Voluntary deductible refers to the minimum amount that the owner bears at the time of making a claim. The higher the deductible the policyholder pays, the lower will the premium amount.
- If the car is installed with an ARAI approved anti-theft device, the insurance company offers an additional discount. The discount simply implies that the anti-theft device makes the car less liable to be stolen.
- Renewal policies offer a privilege membership for members of the Automobile Association and to certain professionals such as Defence Personnel, Doctors and Government employees.
Things to Know About Car Insurance Renewal
- Certain things should be kept in mind while purchasing car insurance renewable policies.
- It is always beneficial to add add-ons to your plans as this will help in lowering the premium amount.
- Upon renewal date, the earlier the policy is renewed, the better, as early bird offers provide additional discounts. It is best to renew the policy before the due date.
- False declarations should be totally avoided as this will result in a lapse of the policy immediately or rejection of claim.
- For cars that come with inbuilt security features (anti-theft alarms, immobilizers, GPS systems), the ARAI provides an additional 2.5% discount on the premium amount.
- Buying the car insurance renewal policy online saves money in processing and distribution costs and provides additional discounts compared to offline renewals. The online renewal process is simpler and quicker. There is no need to submit documents or verification. Online facilities have the option of storing your documents in a secured user account thus saving precious time. Within a few clicks, the car insurance policy is renewed, all from the comfort of your house or through mobile apps in case of vacations.
- In case of renewing an expired car insurance policy, the policyholder needs to intimate the company and should not drive the car till it is insured again. Failing to do so can lead to a heavy financial loss. It is always good to compare different renewal policies before making any decisions. Once the decision has been made, the insurance company sends a surveyor to check the conditions of the car. Upon receiving a positive survey result, the policy should be bought as soon as possible, as the inspection done is not valid beyond 24 hours.
- One should also note that car insurance renewals do not provide coverage in case of damage to the car caused by an accident while driving under the influence of alcohol or drugs; intentional or deliberate accidents; illegal activities like invalid driving license and driving on the wrong side of the road; and regular wear and tear of car parts.
- Cancellation of the car insurance renewal policy is possible, in a hassle-free way. The policyholder will only have to show the purchase of a new policy to replace the current policy.
- Insurance companies offer a minimum of the free-look period, extending up to 14 days. During this time, the terms and conditions in the documentation can be reviewed by the owner.
- The policy can be returned back, in case of dissatisfaction, before the free-look period expires.
- Upon examination, if found valid, the insurance company cancels the policy within a week.
- In case the policy is returned after the free-look period, the insurance company charges a cancellation fee. This amount depends on the number of months passed from the start of the cover period.
- Policy cancellation requests are unaccepted after the completion of 8 months.
Car insurances are deemed void in cases of lapsed policies. Thus it is mandatory to renew car insurances on time.