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.
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.
Legal Compliance: It is required by law to have at least basic insurance coverage before driving your vehicle.
Third-party Damage Coverage: Insurance helps cover costs if you accidentally damage someone else's life, property, or vehicle.
Theft and Vandalism Coverage: Insurance protects you financially if your vehicle is stolen or vandalized.
Repair Cost Assistance: It helps pay for repairs if your vehicle is damaged, saving you from large out-of-pocket expenses.
Medical Expense Coverage: Insurance covers medical bills if you or your passengers are injured in an accident.
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.
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 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 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 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.
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:
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.
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.
Select the desired policy type and fill out the online form with your personal and vehicle details.
If you opt for a comprehensive policy, consider adding extra coverage options like zero depreciation, roadside assistance, return to invoice, engine protection, etc.
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.
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:
Government-issued identity proof such as a PAN card, Aadhar card, or passport
Address proof of the policyholder, like a passport, driving license, or bank passbook
A recent photograph
A copy of the driving license
Vehicle registration number
A copy of the car's Registration Certificate (RC)
Pollution test certificate for the vehicle
Current motor insurance policy number
Card details for making online payments
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.
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:
Traffic violations: Receiving challans for offenses like signal jumping, speeding, or other traffic rule violations can negatively impact your driving record.
Accidents: Being at fault in an accident is recorded as a mark against your driving history, indicating irresponsible or rash driving.
Late payment of fines: Failing to pay traffic fines or challans on time can worsen your driving record and may lead to additional penalties.
Dangerous driving: Reckless or irresponsible driving behavior, if reported and verified, can lead to penalties and a poor driving record.
Vehicle insurance claims: Filing numerous insurance claims suggests frequent damages and unsafe driving habits, which can affect your driving history.
Driving under the influence: Being involved in incidents while under the influence of alcohol or drugs is a serious offense that severely tarnishes a driving record.
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.
Is it safe to renew insurance online?
Yes, renewing insurance online is safe as long as you use the official website of your insurance provider or a trusted insurance platform.
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