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Insurance Article

Car insurance renewal and its importance

April 03 2013

But what is it that actually takes care of your car? It’s your car insurance. It takes care of your car safety and makes sure it runs smoothly. It makes your life easier and less stressful.

Apart from being lawfully bound to get a car insurance plan, each car owner needs it desperately. However, just buying an insurance policy for car is not enough. Your duty towards taking care of your car doesn’t end here. In fact, this is where it starts! You should focus on pay regular premiums and renewing the policy as and when required. In short, you must emphasize on car insurance renewal.

Car insurance renewal is as important as buying one. In case, you are about to renew the existing car insurance, here are some crucial points to take into consideration.

The Renewal

Car insurance renewal should be done on a yearly or half yearly basis. Generally, you must renew the plan within a year of buying the plan for the first time. The occasion is not fixed. It can be done any day of the year. You will be reminded about the renewal date by the insurance company in advance. These days, the company notifies through a mail or personally by your agent.

Check Expiry

It is crucial to renew the policy before it expires. This is because grace period is not usually granted to customers and in the event of failure to make the payment, the entire policy is declared null and void. Hence, you need to renew it in time. Making the payment on time is a way to tell your insurance company that you are continuing with the plan.

The Payment Increase

Sometimes, you may require paying for the rates of the changes in car insurance plan. This is to be paid at the time of renewal. It may happen that the insurance carrier rate rise due to higher claims. Since, the insurance company should bear the expenses. You may also require paying more in the event where your previous term shows accidents (at-fault), violations of traffic rules and many more.

The Trick to Pay Less

Reviewing your insurance will help you gain some discounts. Hence, you should speak to your agent and discuss about the benefits you may get via renewing the plan. While renewing, you can make changes to your coverage. Using car insurance calculator will help you know about the premium you must pay.

The Benefits of Buying Car Insurance

Online buying facility.

  • The customer is offered a digitally signed policy immediately through online facility.
  • The customer can enjoy access to over 2700+ network garages for cashless claims servicing around the country.
  • The car owner has the option for buying ‘optional’ personal accident cover of up to 2 Lakhs INR for co-passengers.
  • Doorstep surveyor facility is available for car owners to cover car with break-in insurance.
  • The insurance company will give up to 2.5% discount for ARAI approved anti theft device installed in the vehicle.
  • Customers can avail add-on covers for items including music systems, fog lights, and seat covers.
  • Car owners can purchase insurance online and pay in instalments without having to pay any extra charges.

The Cover for Car Insurance in India

Car Insurance in India will cover you for damage and destruction caused due to the following listed unforeseen situation:

Natural Calamities

Fire, frost, self-ignition, explosion, hailstorm, lightning, earthquake, flood, landslide, typhoon, hurricane, inundation, storm, tempest, cyclone, rockslide.

Man-made Calamities

Burglary, riot, strike, theft, malicious act, accident by external means, terrorist activity, any damage in transit by road, rail, inland waterway, lift, elevator or air.

One of the major cover facilities offered by car insurance companies in India us the Personal Accident Cover Coverage.

The Personal Accident Cover Coverage

The cover is offered for up to 2 Lakhs INR for the individual driver of the vehicle while travelling, mounting or dismounting from the car. Cover for fellow passengers are also available. However, this is an optional cover wherein you require paying extra towards the premium.

Third Party Legal Liability Protection

This is also referred to as the cover mandated by Indian law. It will cover you against legal liability due to accidental damages resulting in the permanent injury or death of a third party. The cover will also reimburse against damage caused due to the surrounding property. One can also claim against legal liability caused due to accidental damages resulting in the permanent injury or death of a person. It also includes damage caused to the surrounding property.

Understanding Cover and the Exclusions in a Car Insurance Plan

The Exclusions

  • Normal wear and tear
  • General ageing of the vehicle
  • Depreciation
  • Any consequential loss
  • Mechanical breakdown
  • Electrical breakdown
  • Damage to tyres and tubes. This is covered only in case the vehicle is damaged at the same time. Under such circumstances, the liability of the company shall be restricted to 50% of the cost of replacement.
  • No reimbursements are made if the vehicle was being used otherwise than in accordance with limitations as to use. For instance, if the buyer is using personal vehicle for commercial purposes, the company is not liable to make arrangements for reimbursements.
  • Damage to/ by a person driving any vehicles or cars without a valid license.
  • Damage to/ by a person driving the vehicle under the influence of drugs or liquor.
  • Loss/ damage due to war.
  • Loss or destruction to vehicle caused due to mutiny.
  • Losses occurring due to nuclear risks are not included in the car insurance cover.

Last but not the least, taking a car out on road without insurance is a serious crime. Hence, you should renew the car insurance regularly. The process of renewing an existing policy is simple and fast. You can get it done online.

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