When you take a moment and look back at your vehicle buying experience, you will realise that a motor insurance was a part of the entire package. The final on road price that you paid for your vehicle includes a lot of different components including a motor insurance. This simply signifies the importance of a motor insurance for your vehicle.
There is a simple reason behind dealers offering you with an insurance right out of the showroom gate. As per the Motor Vehicle Act of 1988, any vehicle that you wish to drive or ride on the roads must have a valid motor insurance. Dealers offering such policies makes it mandatory for you to own one, the moment you take your vehicle out to the roads. However, that is not the only reason for buying a motor insurance, more on that a bit later.
However, these policies usually are for a one-year period and to continue with their benefits one must renew the same. While it might sound like a standard insurance where one can wait for some time and even get into the grace period before renewing, it is not advisable. There is a lot that you can lose if you do not renew the policy on time.
Thus, first and foremost, one must renew the policy on time to ensure maximum protection against any risks at all times. Gone are the days when one had to rely on just an insurance agent for renewing. Insurers now offer their policies online, which means you can go through them and get a better understanding before investing your hard-earned money in the same.
Things to Look Out For
When you do decide to renew your motor insurance, there are a few things to keep in mind. Here are some of them, which will let pick the ideal policy.
Irrespective of which insurer you reach out to, there are two types of motor insurance that you can buy. A third-party liability policy and a comprehensive policy. While the former is the minimum requirement as per the law and is lighter on your pockets, it doesn’t offer a great deal of coverage. A comprehensive plan surely costs a bit higher but offers better value for money.
There is nothing wrong is modifying your car, after all you want to make it a vehicle that suits your style and needs. However, amidst all this, one must not forget to inform the insurers about the same. Whether it is aesthetics based or pure performance improvements, informing your insurer is the best way out. They might charge you a slightly higher premium, but it is much better than a scenario where they might nullify the policy altogether.
- Policy Lapse
One might lose out on quite a few benefits if a policy is not renewed on time. For starters, you can avail all the benefits of a plan without any breaks. Secondly, you can avail benefits such as NCB or other discounts by renewing on time. It is a good habit to renew the policy about a month before its actual expiry. This way, if there are any price changes, you have immunity against the same. Most importantly, if you keep it too late, you might have to buy a new policy altogether.
NCB or no claims bonus is a benefit that insurers offer to their policyholders for not making any claims. When you do not make any claims, it translates into the fact that you are keeping the road safe and avoid accidents or incidents and thus the benefit. As per NCB, if you do not claim a policy for one year, you can expect discounts of up to 20% and the same goes up to 50% or five consecutive years.
If you were not happy with the coverage of your last policy, the renewal period is an ideal time to fix the same. You can opt for riders or add-ons which will enhance the capabilities of your policy. These added features or benefits come at a small premium but offer a lot of value. The most popular add-ons include zero depreciation cover, cover for accessories, no claim bonus protection and so on.
Comparing policies is perhaps the single most important task that you must carry out before renewals. When you compare, you get to know a bit more about your policy. Comparison websites offer you with instant quotes from insurers and coverage also. This way, you can renew to a policy that is light on your pockets and has a good feature list as well.
If you follow the above steps, you will be able to secure a good policy for your vehicle during its renewal period.