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7 Important Benefits of Car Insurance Renewal

Team AckoFeb 27, 2024

Should you buy a car insurance policy? The simple answer is yes. And there are two very good reasons for the same. First and foremost, the law mandates that all vehicles must have a valid insurance policy to ply legally on public roads. And secondly, not having an insurance leaves you vulnerable for a lot of financial damages.

Contents

1) Third Party Coverage
2) Comprehensive Coverage
3) Switch Insurer and Cover
4) No Claim Bonus (NCB)
5) Add-Ons
6) Car Insurance Online
7) Security

Owning a car is an experience in itself as it checks off the requirements of the family and lets you travel whenever you wish to and where ever you want to. No matter how good a driver you are, you aren’t the only one who drives on the roads. And the mistakes of others can also entangle you into an accident.

With a Comprehensive car policy, you can drive safely and not worry about the potential financial losses that you might have to incur due to unfortunate events involving your car. Since car insurance policies are valid for a limited period, they need to be renewed before their expiry date. Thus, car insurance renewal is something that one must not skip at any cost. Here are some of the major benefits associated with car insurance renewal.

1) Third Party Coverage

In the event of an accident that involves other individuals or properties, your insurance renewal will save the day for you. It will take care of any expenses arising out of the accident and handle the legal aspects as well. This includes damages to properties or buildings and injuries leading to disability or the death of an individual (third-party).

2) Comprehensive Coverage

With online car insurance renewal of your comprehensive cover, you can continue with your car’s coverage against natural calamities such as landslide, earthquake, flood, cyclone etc. On the other hand, man-made tragedies like theft, vandalism, burglary, riots etc. will also be covered.

3) Switch Insurer and Cover

During your online car insurance renewal, you can opt for a different insurer as well. More often than not, first time car insurance policy is purchased from the car dealer itself. That time, much thought might not be given to the insurer or the coverage. However, you have that option and opportunity at the time of renewal.

4) No Claim Bonus (NCB)

When you renew car insurance online without raising a claim during the policy period, you will be eligible for a NCB. It is a discount on insurance premium which can be availed during policy renewal. The discount starts from a minimum of 20% for the first year and goes all the way up to 50% for the fifth consecutive no claim year.

Also, read: Comprehensive vs. Bumper-to-Bumper Insurance

5) Add-Ons

There is a possibility that you aren’t too happy with your policy coverage and need something more. During your policy renewal, you can opt for riders to enhance your policy coverage. Depending on the insurer that you choose, you get access to add-ons such as zero-depreciation cover, engine cover, cover for accessories and so on.

6) Car Insurance Online

During renewal, you can opt for car insurance online which is a much quicker and affordable option. You can simply visit the website of a digital insurer and get a quote by entering some essential details. Once you are happy with the policy and its features, you can buy the policy within minutes.

7) Security

Most importantly, when you renew your policy, you get a sense of security. This allows you to drive around with confidence and not be constantly bogged down by the thoughts of the financial implications of an accident.

You wouldn’t want to miss out on the above benefits while renewing your policy. However, if you do not renew it on time, there are a few consequences and here they are:

If you do not renew your policy, you are wide open to all financial expenses that might arise from an accident.
Not renewing your policy on time means that you might miss out on benefits such as No Claim Bonus.
If your policy expires, you must buy a new policy which can be a bit more expensive and time consuming.
If there is a long gap between your policy renewals, insurers might even reject your proposal to buy a policy from them.

To avoid all the above, you can simply get the renewal of your car insurance done online before its expiry and keep your vehicle insured.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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