Severe restrictions imposed by the government on travels might have landed your car in an idle state in your driveway. With the daily commute to the offices and other night-outs completely out of question, most vehicle owners would have stowed away their cars into safety.
But even if your car is not doing its rounds, it is important to keep your documents updated. The important document among these is your car insurance policy. Your car insurance policy would have a yearly expiry date. Given the current situation, you might feel it is not important to renew the insurance or buy a new one.
But here are the things that can backfire if you don’t have a valid insurance policy.
- Theft of your car – If you don’t have the luxury of a safe parking space and if you have kept your car parked outside, the chances of theft are very high. It is fairly easy for adept thieves to break into your car and steal it. If this happens and if you don’t have a valid insurance policy, then all the money invested in the car would be lost.
- Damages caused by some other vehicles – There are high chances that some other vehicle can come hit on your parked car. This can leave lasting damages to your car. If you have a valid comprehensive insurance policy, damages caused to your own vehicle will be covered by the insurer.
- Falling trees – With the country gearing up for the oncoming monsoon season, strong gales and rains can cause trees to topple over your car. Some of them can be so fatal that it can total your car completely. The only way to not let these unprecedented disasters burden you is by getting an insurance policy.
- Damages due to natural disasters – Flash floods and earthquakes can happen out of the blue. Your primary focus should be on saving yourself and your family. There might not be enough time to move your vehicles to safe locations. If natural disasters cause damages to your vehicles, an insurance policy will help you cover for these damages.
- Man-made disasters – A good amount of angry protesters are also taking to the streets to protest during the COVID-19 pandemic. It is unknown to what extent these protesters would go to take out their anger. Vandalism and riots can lead to torching vehicles or other forms of damage. Insurance policy will provide coverage against damages caused by riots.
Why is it important to renew your insurance policy on-time?
If you are still contemplating whether to renew your insurance policy, here are five reasons why you must renew your policy on time.
- Safeguard against unexpected disasters – Be it a falling tree or a sudden earthquake, having a valid insurance policy can safeguard you against such unexpected events. If your insurance policy has expired, then you will not be able to claim the insurance policy under these circumstances.
- Ease of purchasing or renewing car insurance online – You can easily purchase online car insurance or renew your expired policy without stepping out of your home. This is really important now since you will not have to worry about maintaining social distances and interacting with people. It will only take a matter of minutes for you to purchase and renew an insurance policy online.
- Keep your NCB intact – No Claim Bonus9NCB) is the bonus discount offered on your premium for not filing any claim with your insurer. The more years you go without filing a claim, the higher your NCB will be. If you fail to renew your policy on-time, then you will lose this NCB. You will have to start from scratch again.
- Get your money back in case of theft – If your car ever gets stolen, then you can easily get the invested money reimbursed through your insurance policy. Thus this malicious event will not leave your pockets empty and you can carry on with buying a new vehicle without financial pressure.
Save money in the long run – If you don’t renew your policy now but instead want to buy a fresh policy after a long gap then you will be paying more. Your insurance company can bump up the premium if you are buying a policy after a gap. They might even ask you to submit your vehicle for inspection. All these hassles can be avoided if you renew the policy on time.
