It’s easy to delay insurance-related tasks when there’s no immediate need. But small oversights can lead to missed benefits or added steps later. Renewing your policy at the right time helps maintain protection, reduce paperwork, and retain bonuses like NCB.
This blog explains why a timely car insurance renewal is more important than it may seem.
5 Steps to Follow for Car Insurance Renewal
Renewing your policy is simpler now. You must not follow lengthy and time-consuming procedures to renew your policy. Follow these steps to renew your car insurance:
- Review the Details of Your Existing Policy
You should start by going through your current policy. Here are some things to keep in mind:
- The date of renewal
- Type of coverage (third-party or comprehensive)
- Any optional add-ons you’ve included
- Current Insured Declared Value (IDV)
- Your accumulated No Claim Bonus (NCB)
This will help you decide whether your current policy still works or if it’s time to switch.
- Compare Different Plans Online
Once you’ve reviewed your plan, look at a few other policies online. Here’s what to compare:
|
Feature |
What to Look For |
|
IDV |
Should reflect the car’s present market value |
|
Premium |
Compare quotes for similar coverage types |
|
Network Garages |
A wide network allows easier access to cashless repairs |
|
Add-on Covers |
Useful options like zero depreciation or return to invoice |
|
Customer Ratings |
Go with insurers known for prompt and fair claim settlements |
- Check Your No Claim Bonus
You’re eligible for a No Claim Bonus if you haven’t claimed in the past year. Over time, this can lead to a reduction in premiums.
|
Claim-free Years |
NCB Discount (%) |
|
1 Year |
20% |
|
2 Years |
25% |
|
3 Years |
35% |
|
4 Years |
45% |
|
5 Years or more |
50% |
Your NCB in car insurance can be transferred even if you switch insurers—just be sure to get the certificate from your old provider.
- Choose a Reasonable Insured Declared Value
IDV is the value your claim amount will be based if the vehicle faces a complete loss. Set it too low, and your premium drops—but so does your claim payout. Set it too high, and you may pay more than necessary. Choose an IDV that closely matches your car’s current resale value.
- Renewal Grace Period: What Happens if You Miss It?
In case your policy has already lapsed:
- You may still renew it during a 30-day grace period
- Some insurers might ask for a vehicle inspection
- Your NCB might be affected if the policy is not renewed within 90 days
Setting a reminder before it’s due can help you to avoid these delays and potential losses.
Documents Required for Car Insurance Renewal
Have these documents ready to speed up your car insurance renewal:
|
Document |
Purpose |
|
Registration Certificate (RC) |
Proof of vehicle ownership |
|
Previous Policy Document |
To review IDV and NCB details |
|
PUC Certificate |
Required for vehicle pollution compliance |
|
Aadhar or PAN |
Used for KYC, if required |
|
Driving Licence |
For identification and verification |
How to Save Money During Car Insurance Renewal?
Use these smart strategies to reduce costs without reducing the value of your policy:
You can continue your discount even if you change your insurance provider. Carry your NCB certificate and declare the correct percentage during the renewal.
-
Adjust the Voluntary Deductible
Choosing a higher deductible will help you reduce your premium. Select a figure that you’d be comfortable paying during a claim.
-
Revisit Previous Add-on Covers
Your driving habits may change with your lifestyle. If you commute less or work from home, you may not need all the previous add-ons. Tailor your policy to your present needs.
Many insurers offer better rates when you renew directly through their digital platforms. It’s comparatively faster and cost-effective.
4 Things to Keep in Mind Before Car Insurance Renewal
Here are four things you should cross-check before renewing your policy:
|
What to Review Before Renewal |
Why It’s Important |
|
Add-on Covers You Might Need Now |
Renewal is a good time to consider covers you skipped earlier. Zero depreciation or engine protection may be more relevant today. |
|
Correct NCB Declaration |
Use the exact No Claim Bonus from your previous insurer. Incorrect entries can lead to policy errors or complications in claims. |
|
Policy Options Worth Comparing |
Explore other plans even if you’re happy with your current one. Premiums, garage networks, and features often vary between insurers. |
|
Personal and Vehicle Details |
Check your name, address, and vehicle number. Mistakes may delay claim approvals or service coordination. |
Why Timely Car Insurance Renewal Shouldn’t Be Overlooked?
Having a car insurance policy in place is not just a legal mandate. Renewing on time helps you maintain a cost-effective driving experience as well. Here’s how:
| Benefit | Why It Matters |
| Uninterrupted Coverage | valid policy keeps you covered for:
|
| Retain Your NCB Benefits | No Claim Bonus remains valid only if the policy is renewed within 90 days of expiry. Missing this window can reset the bonus and raise your next premium. |
| Avoid Break-in Procedures | A lapsed policy may require a vehicle inspection before reactivation. This can delay the start of your coverage or increase the premium based on the assessment. |
| Meet Legal Requirements | Every vehicle must have valid insurance as per the Motor Vehicles Act. Renewing on time keeps your documents in order and helps you avoid penalties. |
Renewing your policy on time isn’t just about ticking off a legal requirement. A few minutes spent on timely car insurance renewal can go a long way in keeping your vehicle protected, lowering your premiums, and retaining your NCB benefits. Track your renewal date, keep documents handy, and use this as an opportunity to review what your policy needs.