Car Insurance Renewal

Car Insurance is the primary line of defense against the unforeseen circumstances that could potentially impact the cherished set of wheels. Moreover, car insurance renewal is extending the vehicle’s life against the unpredictability to save yourself, your car and the loved ones against the eventualities of life.

How to deal with car insurance renewal

Renewing car insurance is hassle-free. It can be done easily either on the insurer’s website or third-party websites such as on the site of mymoneykarma. The policyholder can also switch the policy to a different insurer. The process is easy if it is done on time. Renewing the car insurance before the expiry makes all the difference between the hassle-free and the cumbersome process. However, if you have missed the due date, or realized the policy has expired, don't worry! There are other ways to sort out this situation. It may require extra effort and might cost you more, but it will get the car insurance renewed.

Car Insurance Renewal After the Due Date or Expiry

Grace Period
The car insurers provide various terms and conditions on their policies. Some companies offer the grace periods to pay the premium and renew the policy. This period can range between 3-30 days. Some companies levy the late fee for using the grace period.
Every company doesn't offer the grace period, so if you don't have the grace period, then the policy will expire by the due date. In case you are offered a grace period, be sure not to overuse it. Use it only when it is required.
If the person is renewing the policy after the due date, here are some of the pointers:

• Ensure that you have a grace period. Ask this information from the agent or the insurer.
• Be aware of the fees for utilizing the grace period.
• Making late payments can disrupt the schedule of future payments.
• The policyholder may face issues with the renewal policy if consistently paid during the grace period.
• While renewing the policy, ensure that all the dues are paid including late fees.
• Also, make sure any changes made to the policy done appropriately.

Renewal of Car Insurance Policy

If the policyholder failed to renew the policy before the expiry date, then the insurance gets lapsed. If the owner of the car will not have the car insurance then legally the person can’t drive on the roads in India. The police can levy a fine or seize the vehicle if the person doesn't have a valid insurance policy. The consequences of missing the renewal date are plenty:

• If the policy has lapsed for the assigned period, then you may not qualify for the renewal, and you would be required to apply for the new policy.
• The premiums might be higher, and the previous benefits won't be applicable in that case.
• Fines can be levied for the number of days missed.
• The insurer might conduct vehicle inspections.
• There are higher chances of losing 'no claim bonus.'
• If you drive the car without the sound policy, you can get in trouble with the authorities for violating regulations.
• If you meet with an accident without the valid insurance policy, you are liable to bear the responsibility of damages.

Some important things to remember about the car insurance policy are:

• It’s always advisable to renew the policy before expiry.
• Find out the time and date at which the insurance lapses.
• Renew ahead of time to avoid the last moment hassles.

Some insurers may provide a car insurance renewal notice to the policyholders. If the insurance company offers this facility, sign up for it so that you don't miss the deadline.

Renewal of Car Insurance After the Accident

If you already met an accident before the policy renewal, renewing the policy can be tricky after that. Legally, as per the insurance policy, the accident must be reported to the insurer, even if it’s a minor one. Many people don't inform about minor bumps because there is not much damage or costs involved, and filing the accident with the company can be time-consuming, tedious and that results in the troubles later.

• The third-party claims - If the company is liable to pay third-party claims, then the insurance premiums can increase significantly upon the renewal.
• Free pass - The insurance companies may give the free pass on the first “at fault” accident. In this case, the car insurance renewal quote and the type of policy will remain the same.
• Hit-and-run - For the collision cases in which the other driver was at fault but disappeared, the claims will not affect the rate of premium at the time of renewal.
• Surcharges - The insurer may also impose taxes on the policy. If you are facing any surcharges, you can ask the agent for how long the surcharge will be applicable. Usually, companies drop the surcharge after two years, if any accident didn’t occur in that period.

Car Insurance Renewal After the Claim Process

Having claimed the insurance policy would affect the renewal, but there are many other points to consider here.

• Non-fault claims - If you are not accused of the accident, then you can file the claim, and the insurer will try to recover the costs from the insurance policy of another driver. These claims don't have a much negative impact on the renewal. However, you can lose the whole or some part of the 'No Claim Bonus.' If the insurer is not able to recover costs from the third party, then the case might be considered a “fault claim.” In all the circumstances, the premiums can increase by around 30%.
• Non-accidental claim - If the policyholder has claimed in the event of vandalism, fire, theft, it will not affect the premium while renewing the policy. However, if the multiple claims are filed, it can affect the eligibility for claims-free discounts. If the rate of claims is too high, then the policy can be terminated.
• Fault claims - The claims in which the insurance company has to pay third-party damages can increase the premium significantly upon renewal. Only in the cases where you are granted forgiveness for the first case, the premium will remain the same.

Renewal of car insurance with the outstanding claim

Many times, the claims take months to be processed and get disbursed. Sometimes the claims remain in the outstanding balance of the insurer while renewing the policy which can complicate the things for you and the insurer.
As the company is still investigating the claim, you might be at fault in the accident. In the case of car insurance, you’re guilty until proven innocent. It can increase car insurance renewal quotes. However, there’s no need to worry about this. After the renewal of the policy, wait until the claim is settled. Once it is confirmed that you were not at fault, talk to the insurer and get the premiums reduced. The extra money paid to the insurer will be adjusted.

Benefits of Online Car Insurance Renewal

Renew the car insurance online to save time, money and extra effort. In today’s fast-paced environment, most of us don't have the time to visit the physical outlet and renew the respective car insurance policies. Instead, we prefer the online method which can be accessed from anywhere. The following are the advantages of online car insurance renewal:

• Save time - Renewing the car insurance online takes less time-consuming.
• Hassle-free process - Unlike visiting the actual outlet of the insurer, the online car insurance renewal process is more convenient. Along with it, there are no documents to submit or verifications to take place immediately.
• No documentation - Online renewals involve little or no documentation process. Usually, the concerned documents need to be furnished during the claim process.
• Safe and secure - Car insurance companies are aware of the need to provide maximum security for the online collection of personal information. Thus, they have created the portals that are robust, secure and highly customer-centric.

The top three things one must consider before renewing car insurance:

• Negotiate the premium amount:
  The proposed premium can be further reduced by negotiating with the company representatives such as the agents or the customer service. Get in contact with the insurer to see how they can help in reducing the premium amount on the overall value or by eliminating the add-on features such as “zero depreciation cover.”
• Consider the add-on cover options
  Along with the standard features and benefits, the add-on options also enhance the policy cover. Look out for the free covers that suit the user and ask for inserting them in the standard cover. Add-on options come at a particular cost.
• Check the validity of the information
  Look out for the mistakes and doubts in the policy information and have them corrected before the issuance. The policy renewal is the right time to update the contact and the other details. Incorrect information may lead to the denial or delay in the processing of the claims.

 

How Can I Reduce the Premium of Car Insurance?

 

• Opt for the higher voluntary deductibles - The voluntary deductible or excess is the amount of money paid towards the repair of the car following an accident before the car insurance comes in. If the insurer is confident of the driving skills, he or she can opt for the larger deductible. It causes a considerable reduction in the car insurance renewal quote. It would help if you settled at a value that can be paid comfortably at the time of an accident.
• Don't raise the claims for little expenses - If you refrain from making small claims under the car insurance, you can get an NCB that provides you a discount in renewal with a premium of up to 50% discount. Don't lose out on the benefit by raising claims for the small bumps and scratches that you can easily afford to pay.
• Compare the insurance plans online - It is highly recommended to compare the car insurance plans online before the policy renewal. This way, you will get an idea of various insurance covers and the best market rate.
• Get the membership in AAI - Consider getting the membership in the Automobile Association of India. Apart from offering several benefits like updating the address on the driving license, gaining an international driving permit (IDP) within the stipulated time, changing the car ownership effortlessly, membership in the association also enables to get a lower premium on the car insurance.
• Install anti-theft devices- Installing such devices in cars can increase the chances of reducing the premium.