Car insurance is mandatory in India under the Motor Vehicles Act, and driving without a valid insurance can result in heavy penalties. Having car insurance not only ensures that you're legally compliant but it also provides financial protection in case of accidents, thefts, or damages. In today’s date, when road accidents are at an all-time high, choosing the right insurance and renewing your insurance on time is very important.
Every car insurance policy has a fixed duration, and once the policy period ends, you'll have to renew it without lapse. But when is the best time for car insurance renewal? Whether you have Hyundai insurance or Maruti car insurance, renewing your insurance at the right time is very important.
Read on to know all about car insurance renewal and how it affects you as a driver or a car owner.
Duration Of Car Insurance Renewal
When it comes to car insurance renewal in India, the standard policy duration is one year. Most insurance companies offer one-year policies that need to be renewed annually. However, in recent years, long-term policies have also gained popularity in the Indian market. Long-term policies offer coverage for a period of three years or five years, depending on the policyholder's preference.
The Insurance Regulatory and Development Authority of India (IRDAI) have encouraged the introduction of long-term policies. Long-term policies can help reduce the number of uninsured vehicles on the road. In 2018, the IRDAI made it mandatory for all new cars to be sold with three-year third-party insurance.
In December 2022, the IRDAI proposed a new insurance coverage for cars with a coverage period of three years and for two-wheelers, with a coverage period of five years.
For instance, if you own a Hyundai car, you can opt for a one-year policy for Hyundai insurance or choose a long-term policy.
For those who have purchased annual or short-term car insurance plans, it is advisable to renew their policies within 15 to 30 days of the expiry date. Whether you own a Maruti car, Hyundai car, your insurance policy provider shall send you notifications for Maruti insurance renewal or Hyundai insurance renewal before the due date.
Let's say you have a Hyundai insurance policy that expires on 31st March 2023. You shall renew the policy 15 to 30 days before the expiry date to avoid any lapse in coverage. Your insurance company shall send you notifications and reminders for the same.
In case you fail to renew your policy, in this window, you might get a grace period. Once you cross the grace period too, the policy is considered null and void, and no claims will be accepted.
Importance of Timely Car Insurance Renewal
In India, having valid insurance coverage is mandatory for all car owners, as per the Motor Vehicles Act. Failure to comply with this requirement can lead to heavy penalties and legal consequences. It is important to renew car insurance policies on time to avoid any lapses in coverage, and insurers are required to send timely reminders to policyholders.
Tips for Successful Car Insurance Renewal
• You should assess your insurance needs before renewing your car insurance policy. The type of policy and its duration should be chosen based on your insurance requirements.
• Long-term policies offer a fixed premium rate and reduce the hassle of annual renewals. However, they also come with their own set of terms and conditions.
• Renewing the policy online is quick and convenient, and policyholders can compare and choose from a variety of plans offered by different insurers. You can change your policy provider in case you are not satisfied with your current policy provider.
• Online renewal also provides access to additional benefits and discounts, making it a cost-effective option for policyholders.
In conclusion, car insurance renewal is a crucial aspect of owning a car in India, whether you are looking for a Hyundai insurance renewal or Maruti insurance renewal, renewing on time is crucial.
Timely renewal and adequate coverage are essential to avoid any legal or financial repercussions. With the availability of online renewal options, car owners can conveniently renew their policies and choose from a variety of plans offered by different insurers.