Buying a car is a well-thought-out investment for many. The amount spent on buying a car will be a sizeable portion of one’s investment. Hence, it is also essential to protect it at all costs.
What is car insurance?
Car insurance is a policy offered by insurance companies wherein damages and liabilities caused due to an accident caused by your car will be taken care of by the insurance company. When you buy an insurance policy, you will be insuring your car for a sum, and when you get into an accident, that sum amount will be given to you by the insurance company (subjected to terms and conditions).
The extent of the scope of coverage will depend on the type of insurance policy you have opted for.
Types of insurance policies
There are broadly three types of car insurance policies:
1. Comprehensive car insurance policy: When you opt for a comprehensive car insurance policy, then the following factors will be covered under it:
- Damages caused to your vehicle in an accident.
- Damages caused to your vehicle due to theft, natural calamity, fire, riots etc.
- Damages caused to a third party’s vehicle or property.
- Death or injuries caused to third-party.
Apart from these, you can further extend this policy by adding add-on such as zero depreciation cover, return to invoice cover, breakdown assistance, engine and gearbox protection cover etc.
2. Third-party Insurance policy: In a this policy, only third-party liabilities will be taken care of, i.e. damages caused to third-party’s vehicle or property and injuries/death caused to third-party. Damages caused to your vehicle will not be taken care of. This is the minimum document mandated as per the law to ride a car in India.
3. Own damage insurance policy: Own damage insurance policy will cover for damages caused to your vehicle due to accident, theft, natural calamity, fire, riots etc. You can only take this policy if you have a third-party insurance policy in place. You can also customise this policy with add-ons.
How to renew the insurance policy before it expires
You can do the expired car insurance renewal online or offline easily. Always ensure that you renew the policy before it expires so that you can maintain your No Claim Bonus streak and avoid getting fined for driving without an insurance policy.
To renew your policy online:
- Visit the online website of your insurance company.
- Enter your vehicle’s make, model, variant, registration rate, and the city you drive in.
- Chose the policy–Comprehensive, Third-party or Own damage policy.
- Fill in the details of your previous policy.
- Customise your plan with add-ons and set the IDV if you have opted for Comprehensive policy.
- Complete the payment. After successful verification, the renewed policy will be sent to your e-mail id.
To renew your policy offline:
- Visit your nearest insurance company or insurance agent.
- Submit the required documents.
- Make the payment.
- After successful verification by the agent, the renewed slip will be given to you.
How to renew the policy after it expires?
You can renew your policy after it expires the same way as mentioned above. But make sure you renew your policy well within the grace period. If you renew your policy after the grace period then your No Claim Bonus will be lost. No Claim Bonus is the discount you will get on the premium when you haven’t filed any claim in the policy tenure period.
Best practices to follow to ensure the policy is renewed before the expiry date
To ensure you renew your policy no matter whether it is Comprehensive car insurance policy or third-party car insurance online, you can do the following steps:
- Opt for an Electronic Clearing Service with your bank account so that the premium amount will be deducted on the scheduled date automatically.
- Opt for SMS or e-mail remainder service with your insurance company so that you will get a reminder on time.
- Keep a reminder on your smartphone since you carry it around with you all the time and will be reminded on time.
