All Things You Should Know About Car Insurance Renewal in India

by Vivaan Khatri | 28/05/2020
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Car insurance should be renewed on yearly basis. The good news is that you can file for car insurance renewal in India online.

What is car insurance?

When you buy insurance for your car, you will be provided with comprehensive protection in case of damages caused by incidents. Having car insurance will save you from losing money if your vehicle gets involved in accidents or suffers from damages. Moreover, car insurance also offers personal accident cover for the owner/driver of the car in the event of getting an injury from any car accident.

All Things You Should Know About Car Insurance Renewal in India

Car insurance can offer protection for policyholders in case of misfortunes occuring to their cars

Here are some prominent benefits that car insurance provides:

  • Cover payment in case of damages caused by collision, car crash, death or natural calamities.

  • Cover the expense for hospitalization if an accident occurs

  • Lower the financial or legal risks emerging from a third-party liability or damage

  • Provide rider benefits like roadside assistance, zero depreciation

Under the Motor Vehicles Act issued in 1988, all cars plying on roads in India are required to get a valid third party liability coverage. As per the MV Acts, it is compulsory for car buyers to get a 3-year third party liability policy and at least 1 year of Own Damage (OD) cover for their newly-bought cars. After the first three years, car insurance must have to be renewed. However, the validity of car insurance for old cars usually lasts one year, which means that car owners have to renew car insurance annually.

Car insurance renewal in India

As mentioned above, car insurance should be renewed annually and the continuation of policy should be seamless. If the owner fails to extend the car insurance before the due date, he or she would have to undergo a complicated process to renew car insurance and pay a penalty. It means that you should renew the policy before the insurance gets expired. Moreover, it is illegal for a car to ply on roads without a valid third party liability insurance. Fortunately, some car insurance providers now allow customers to renew insurance policy online at home, which simplifies the car insurance renewal process.

hands covering a toy car

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Each insurance providers will have a different procedure for renewing insurance. You can contact your insurance provider to get the detailed instruction on how to renew car insurance. In spite of this, there might be certain differences in the process, but the core procedure remains the same for most car insurance companies. IndianAuto will give you the basic steps of car insurance renewal in India.

toy car with money and calculator below

Car insurance should be renewed before the due date

1. Choose your insurance

It is noteworthy that you don’t have to renew your car insurance with the current insurance company. In fact, the car owner can opt to renew insurance with a new company. Some criteria that should be taken into consideration when picking up your next insurer include the price and coverage of the policy. You should check the details of the policy at insurance companies' website and compare among these companies to see which policy will be the most suitable for you and the most value-for-money offering.

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It is also recommended that you ask for suggestions from friends and relatives if they are also a policyholder. You can also do research online, finding reviews and feedbacks of your preferred car insurance provider. When you have made up your mind on what insurer you will go with, you can visit the website of that insurer and follow its instruction of car insurance renewal.

2. Fill the details

The insurance premium for your car is determined by various factors including the make-model, variants details, age, claim record, as well as your location and more. After providing these details, you will move to the next step. In case you renew your insurance policy with the current provider, you won’t have to provide these details.

time to renew clock

3. Select your plan

One insurance company can provide different plans. However, you should pick the Comprehensive car insurance policy since it would include the Third-party liability cover that is made mandatory by the government as well as cover for accident, calamities and car theft.

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If you select an add-on plan, your insurance premium will increase so does the insurance coverage. Before opting for an add-on, you should consider carefully to see if the add-on policy does bring you benefit.

Additionally, some car insurance providers offer No Claim Bonus if the policyholders did not put forward any claim during the previous policy period. Make sure to include this discount in your insurance renewal quote before processing payment.

4. Make Payment

Since you can easily renew car insurance online, you can also make payment via different options including internet banking, credit card, debit card as well as other online wallets. Car insurance policy will be sent to your registered email ID as soon as the payment is done. Last but not least, double-check the policy document. Look through all the contents if every given information is correct. In case of any incorrect details, you can change the details at the earliest.

Car insurance renewal in India can be easily handled within minutes. You should not put it off until the last minutes. Late application for insurance renewal can be even more complicated and cost you an amount of money. If you delay renewing insurance after three months after the expiry date, all the No Claim Bonus will be reset to zero.

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