Having your car insured is mandatory, and you must never let it lapse. The reason is simple – even a single day without an insurance cover can cost a lot. Here are a few benefits of renewing your car insurance plan on time.
Third party coverage
In case you are in an unfortunate accident that involves a third-party, you may be asked to pay for the damages caused to them. If you let your insurance policy lapse, you will have to bear the costs out of your pocket. These could be substantially high if the third-party suffers disability or death. Renewing your policy will safeguard you from such eventualities.
Uninterrupted comprehensive coverage
Comprehensive car insurance takes care of any expenses arising from damages sustained by your car. The damage could be because of a road accident or any other calamities. The cover also provides protection against loss from car theft.
Upgrade your policy
With time, your car insurance needs may change. The best time to upgrade your policy is at the time of renewal. You can not only switch the cover you have opted for, but also the insurer based on your needs.
No claim bonus
When you renew your car insurance before it lapses, you can take advantage of no claim bonus. The no claim bonus can give as high as a 50% discount on the premium. If you let your policy lapse, you will no more be eligible for the bonus.
Policy renewal is also a good time to revisit your insurance needs. You could personalize the coverage to your requirements by purchasing add-on covers. Most popular add-on covers include zero-depreciation cover, engine cover and a cover for car accessories.
Renewing your car insurance policy gives you a sense of security. You need not worry about dodging police checkpoints or wonder about what to do in case of an accident. Remember that if you do not renew your insurance policy on time, you will:
- Face financial stress in case of an accident or theft
- Miss out on benefits like no claim bonus
- Pay a higher premium for new insurance policy
- Go through a time-consuming process before the policy issuance
- Be considered negligent by insurers, who may even decide to reject the proposal if the gap is too high.
Renewing your insurance policy online takes less than five minutes, and is completely hassle-free. Better take out these few minutes to avoid bigger issues later.