India accounts for the highest number of road accidents globally with over 5 lakh crashes reported every year. Whether it’s due to recklessness, over speeding, failing to give way or running into the back of another car, they aren’t pleasant experiences. However, with the right type of car insurance, you can feel confident that you’re protected if a driver hits your vehicle. While motorists may consider car insurance as a grudge purchase but not only does it protect you in the event of an accident or theft, it’s also a legal requirement for all drivers on Indian roads.
When you purchase a car or two-wheeler, the on-road price of the vehicle includes the cost of insurance. However, this insurance comes with limited validity and the owner is required to renew the policy before it gets expired. And that’s where most policyholders fail. According to a General Insurance Council of India (GIC) data, over 60 per cent of vehicles in India are uninsured.
Car Insurance is Mandatory
In India, as per the Motor Vehicles Act, driving on a public space without a valid motor vehicle insurance policy is illegal. Motorists must have at least third party insurance cover before taking their vehicle at a public road. Having an own damage policy, however, is not compulsory but that doesn’t mean you should only buy the minimum required coverage. Also, it is mandatory to carry the insurance certificate of your car in physical form or digital record (in DigiLocker App) while on a road trip, along with other documents. You can face legal complications if you fail to produce the car insurance document when asked by traffic police officials. Therefore, it’s advisable to opt for a comprehensive car insurance that provides coverage against natural and man-made disasters such as earthquakes, thefts and others. Acko car insurance, available at Finserv Markets, offers a quick and hassle-free claim settlement process, including cashless claim facility across all garages, to the policyholders. The online car insurance calculator also makes it easy to compare and find out how much you will pay for coverage.
Why You Must Renew Your Car Insurance on Time
Renewing your car insurance policy shows that you care for your family and your vehicle. This is the first step towards securing yourself as a motorist because driving a car without any kind of coverage involves a huge risk. Not only financially but it can take away your peace of mind. Suppose, if your car is stolen or damaged, you are solely responsible for getting it fixed. If the vehicle requires a lot of repairs, it can cause an enormous financial setback to your family. In case, you are still paying off the EMIs then your repayments will continue and expensive repairs will put an additional strain on your stability. Even if a mishap takes place a few hours after the policy lapse, the insurer will not honour the claim. So, it’s crucial to renew the policy before time.
Also, the biggest disadvantage of not renewing your car insurance on time is that you’ll lose out on No Claim Bonus. It’s a kind of reward that insurance providers offer to their customers when they do not file any claim in a policy year. It’s a discount on premium charged by insurance companies and it can also be transferred over to your new car. However, if you let your policy lapse, you lose out on rewards and end up paying higher premiums.
You can renew car insurance online from a digital-first insurer such as Acko car insurance in a convenient and hassle-free way. You can use an online car insurance calculator, skip paperwork and commissions and get the comprehensive coverage for your four-wheeler within minutes.