Motor Insurance Renewal

Motor insurance, also known as vehicle insurance, provides coverage to vehicle owners against losses or damages resulting from traffic accidents, theft, or other incidents involving their vehicles. In India, it is mandatory to have at least third-party vehicle insurance to drive on public roads legally.

Most motor vehicle insurance companies offer motor insurance for up to three years. Vehicle owners need to renew their vehicle insurance as soon as it expires to ensure continuous coverage.

In this article, we will look at the types of motor insurance policies and the renewal process.

What is Motor Insurance Renewal?

Motor insurance policies are valid for one to three years. After the expiration, the vehicle owner has to renew the policy to extend the validity. Let us look at the reasons why you should keep your vehicle insurance policy up to date.

Types of Motor Insurance Policies

There are primarily four types of vehicle insurance policies. When you renew your motor insurance it is important to know about these types so you can get the best coverage for your vehicle.

Third-Party Liability Insurance

This is the basic insurance required by law in India. It covers any legal liabilities if you cause damage to someone else's property or injure another person while driving. It does not cover any damage to your own vehicle or injuries to you.

This type of insurance is essential for meeting legal requirements but offers limited protection.

Own Damage Insurance

Own damage insurance covers the cost of repairing or replacing your vehicle if it gets damaged due to accidents, theft, fire, or natural disasters. It provides financial protection for your vehicle but does not include third-party liability, so it must be combined with a third-party policy.

Comprehensive Damage Insurance

Comprehensive insurance offers extensive coverage, including both third-party liability and own damage protection. It covers a wide range of risks such as accidents, theft, vandalism, and natural disasters. 

This policy can be customized with add-on features like zero depreciation and roadside assistance for more comprehensive protection.

Collision Insurance

Collision insurance specifically covers damages to your vehicle resulting from a collision with another vehicle or object. It helps pay for repair or replacement costs, regardless of who is at fault in the accident. 

This type of insurance is beneficial for those who want to ensure their vehicle is covered in the event of a collision, but it does not cover other types of damage or third-party liabilities.

Steps to Renew Motor Insurance Online

Renewing your motor vehicle insurance online can be a quick and convenient process. By following a few simple steps, you can easily update your policy and enjoy continued coverage.

Let us look at the steps to renew motor insurance online:

1. Research Insurance Options

Start by researching different insurance companies to find one that offers good pre-sale and post-sale services, adequate coverage, and fair pricing. Reading online reviews can help you make an informed decision.

2. Choose the Type of Insurance Policy

After selecting an insurance company, log in to their website and choose the type of policy you want. Decide which type of insurance policy you want for your vehicle. A third-party motor insurance policy is mandatory and covers third-party liabilities. A comprehensive vehicle insurance policy will cover your own vehicle's damage along with third-party liabilities.

3. Enter Your Details

Select the desired policy type and fill out the online form with your personal and vehicle details.

4. Select Add-ons

If you opt for a comprehensive policy, consider adding extra coverage options like zero depreciation, roadside assistance, return to invoice, engine protection, etc.

5. Make the Payment

Once you have finalized your policy and selected any add-ons, proceed to make the payment. After payment, your renewed policy will be sent to you via email, usually in a PDF format. Print multiple copies of the policy, keeping one at home and one in your car for legal compliance.

Documents Required for Motor Insurance Renewal

The Insurance Regulatory and Development Authority of India (IRDAI) has established a list of mandatory list of documents for the renewal of vehicle insurance. This list of documents applies to all vehicle insurance companies and must be submitted with the renewal application.

Here is the list of documents:

  1. Government-issued identity proof such as a PAN card, Aadhar card, or passport

  2. Address proof of the policyholder, like a passport, driving license, or bank passbook

  3. A recent photograph

  4. A copy of the driving license

  5. Vehicle registration number

  6. A copy of the car's Registration Certificate (RC)

  7. Pollution test certificate for the vehicle

  8. Current motor insurance policy number

  9. Card details for making online payments

When to Renew Motor Insurance?

Most insurers offer annual plans, and long-term options for three or five years, as mandated by IRDAI. Opting for a long-term plan can save you from the hassle of yearly renewals. 

However, if you have an annual policy, it is best to renew it 15 to 30 days before it expires. For instance, if your policy ends on April 23, 2022, consider renewing it around March 24.

If you miss the renewal date, check your insurer's grace period. The grace period is typically 30 to 90 days. Note that claims during this period will not be accepted, and late fees may apply.

Impact of Driving Record on Insurance Premium

A driving record is a key factor in determining vehicle insurance premiums, as it reflects the risk an insurance company takes in covering a driver. A clean driving history can lead to lower insurance costs and smoother claims processes. 

Here are some factors that can negatively affect your driving record and impact your insurance premiums:

Conclusion

Renewing your motor insurance makes sure that you remain legally compliant and financially protected against various risks associated with owning a vehicle. Understanding the different types of insurance policies and the renewal process can help you make informed decisions while renewing your motor insurance.

With the convenience of online renewal, keeping your vehicle insurance up to date has never been easier. Visit the Moneyview website or download the app to quickly renew your motor insurance.

Frequently Asked Questions

Yes, renewing insurance online is safe as long as you use the official website of your insurance provider or a trusted insurance platform.

Yes, you can renew your car insurance after it expires, but it is best to do so within the grace period provided by your insurer, which typically ranges from 30 to 90 days.
Insurance policies do not automatically renew unless you have set up an auto-renewal option with your insurer. It's important to check your policy details and confirm with your insurance provider if you wish to enable automatic renewal.
Bumper-to-bumper insurance, also known as zero depreciation cover, is an add-on to your comprehensive car insurance policy. It covers the full cost of replacing car parts without considering depreciation.

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