The global pandemic has enforced nationwide lockdown, forcing people to stay indoors. In fact, it has impacted the way people led their lives. From travelling to shopping, everything around has changed. Due to the extended lockdown and travel restrictions (even within the city), people have not used their motor vehicles for a long time.
Because of this reason, many people are in dual thoughts about whether to renew their car insurance plans or not. While you may think it is unreasonable to renew your car insurance plan in lockdown, it is highly advisable to do so.
As a matter of fact, a comprehensive car insurance plan not only covers you for the loss incurred during an accident but other unforeseen vehicle-related emergencies as well. The following are a few reasons why it is important to renew car insurance even during a pandemic.
- You will lose your No Claim Bonus (NCB) if you policy lapses
People with a comprehensive car insurance plan are eligible for the NCB discount. It is an award received for not claiming on your insurance during the policy period. The NCB gained starts from 20 percent and can go up to a maximum of 50 percent when you go claim-free for over five years.
If you fail to renew your insurance, you might end up losing the accumulated NCB on your plan. Furthermore, you will miss your chance to avail discounts on premiums charged on your policy during renewal. So, make sure that you renew your car insurance plan before it lapses.
- Natural disasters could damage your vehicle
It is monsoon season in India. Floods and tree-falling incidents are quite frequent during this time. So, if you live in a flood-prone area, your car is most likely to get damage. Also, a tree branch falling on your vehicle can cause significant damage.
Not having an active car insurance plan during such times will only be a financial burden for you. Hence, it is advisable to renew your car insurance policy on time and avoid paying for these expenses from your pocket.
- Car insurance lapse can attract additional expenses
It is advisable to not let your car insurance policy lapse, especially after the 30 days grace period of the renewal. In case you fail to renew your car insurance plan after the grace period, the insurer might request you to get your vehicle verified again before reinstating your plan.
Also, when reinstating the policy with your insurer, they might charge you an additional amount for the extra time when you did not renew the plan. Hence, it makes sense to keep your policy up to date and renew it on time.
In The End
Car insurance renewal does not have to be a time-consuming process. Nowadays, insurers offer this facility online on their website. Just enter your existing policy details, check your renewed premiums for changes (if any), make premium payment online, and you are done. The renewed car insurance plan will be sent to you in no time.
Also, you can use the car insurance calculator to determine the premiums if you are planning to switch from your existing insurer to a new one. No matter what you decide to do, make sure that your vehicle is insured at all times.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.