Having insurance coverage is not just a legal obligation in the current scenario. It is an investment that you make to protect yourself against potential financial threats such as accidents, theft, and even natural disasters.

The increased vehicular density on roads due to population and rash driving are common reasons for around 67,933 recorded accidents on roads, causing 29,018 fatality cases. So, to protect yourself in such times, adequate vehicle insurance coverage is necessary. Read more through this blog to know more about vehicle insurance, its benefits, and how you can get the best coverage for yourself.

8 Reasons Why You Should Renew Your Vehicle Insurance

Getting a car insurance renewal online especially before your grace period ends, is important to keep yourself financially protected while driving on the road. Read below to understand why it is important:

1.  Legal Compliance

Under Section 146 of the Motor Vehicles Act of 1988, having third-party cover in your car insurance is mandatory. Having this insurance cover will protect you against damages or injuries caused to third-party individuals while saving you from imminent challans.

2.  Financial Stability

Getting adequate coverage at the time of vehicle insurance renewal protects you against potential financial threats. Losses from situations such as accidents, theft, vandalism, floods, and landslides can be huge if you do not have the necessary coverage for your vehicle.

3.  Prevents Loss of NCB

Renewing your car insurance before the grace period ends helps you to keep receiving the benefits of No Claim Bonus. This means you can get up to 50% discount on premiums for being a safe driver and not making claims for up to 5 years.

4.  Continuous Protection

Regular renewal guarantees continued coverage against unexpected occurrences like accidents, theft, or natural calamities. It avoids gaps in coverage, which may expose you to financial burdens for repairs, injuries, or third-party claims following an incident.

5.  Prevent Higher Premiums

Gaps in insurance coverage put you at a higher risk with insurers, and you may end up paying more when you renew your policy. Having continuous coverage keeps you in a low-risk bracket, keeping premium costs low in the long run and preventing unnecessary hikes.

6.  Access to Cashless Repairs

Renewing your policy gives you access to cashless repair facilities at approved network garages. This saves you the hassle of making advance payments and makes repairing your vehicle after an accident much easier and less costly, saving you time and out-of-pocket cost.

7.  Option to Switch Insurers

The renewal period is a good time to compare and review insurance companies. You may switch to another company if their premium, benefits, or coverage suits your requirements better, so you have the best deal for your car.

8.  Peace of Mind

Having active insurance provides peace of mind on the road, knowing you're covered financially in case of accidents, theft, or damage. Such confidence gives you an assurance to drive safely and confidently without fear of facing any unexpected financial expenses.

Tips to Renew Your Vehicle Insurance

Here are some tips you must keep in mind before renewing your vehicle insurance.

●  Renew Before The Grace Period Ends

Renewing before the grace period ends allows you to keep your accumulated NCB and keep receiving discounted premiums. Moreover, renewing after it ends can increase your premiums.

●  Review Your Current Policy

Review your current policy and assess if the coverage is sufficient with your requirements. You can easily research and customise your new coverage as per your need and budget.

●  Check for Discounts

Many insurers offer limited-time discounts on special occasions like festivals. You can utilise them to get your insurance plan at a reasonable cost.

●  Review Insured Declared Value (IDV)

Verify the IDV of your vehicle to make sure the insured value is accurate and fair, balancing coverage and premium cost.

●  Consider Voluntary Deductibles

Opting for a voluntary deductible can reduce premium costs by sharing a part of the claim amount with the insurer.

Final Thoughts

Renewing your vehicle insurance within the grace period is very important to keep yourself financially protected and to avoid penalties up to ₹4000 for driving without an insurance policy.

You can keep yourself updated on which areas your car needs protection and choose the coverages and add-ons accordingly to get the best protection for your vehicle within your budget. Remember, renewing your vehicle insurance policy will not only make you legally valid to drive on Indian roads but also safeguard your finances during different incidents.