What is Car Insurance Renewal?

Today, it has become easy to buy a car on loan, because of the benefit of loans. In such cases, the instant loan provision helps many of us.  But first of all, you need to protect your car. And that is possible only by buying a car insurance policy.


Car insurance renewal online is the reason, why we do not worry much about unforeseen incidents or anything bad that can happen to us. We travel hassle-free whenever we want to. Everything becomes easy and stress-free when we own car insurance.But that is not all. Apart from the insurance, you must take good care of your car. With a new car, come new responsibilities. Also, you must remember to renew your car insurance policy from time to time.


In India, having a car insurance policy is very important. In fact, it is compulsory to have a car insurance policy as per the Indian Motor Vehicles Act, 1988. Any vehicle insurance is a means to protecta particular vehicleand providesfinancial aid in case of any adversities such as accidents, thefts, etc. An insurance policy purchased for the car needs to be available as long as you own the car. Hence insurance providers provide protection for a specific period of time after which the insurance needs to be renewed.


Insurance is the standard length of time given to a person, during which the insurance will be in effect. However, once that particular period is over, your car insurance policy ends. Therefore you need to renew your car insurance policy before the due date. This is known as car insurance renewal. If you do not renew your insurance policy on time, then you have to either pay a huge sum of penalty or you have to go through certain lengthy procedures to get it renewed.


Most car insurance policies work on the criteria that the car insurance policy must be renewed every 6 months, or one in a year. Your car insurance policy must be renewed within one year of buying it. These things are difficult to remember. Therefore car insurance companies remind you by sending a notification text message or an email well in advance.


What is the price that you have to pay after renewal?

Car insurance renewal price varies from car to car and person to person. A very inexpensive car will cost you around INR. 3000- INR. 4000 a year. While some cars which are high end and expensive will cost you around INR. 8000- Rs.9000 a year. The insurance policy of the car depends on many factors like the age of the car, the model of the car, engine capacity, condition of the car during renewal, fuel type, area of registration,your association with any vehicle organization, etc.


Model of the car- The insurance depends on the model of the car. This alone pretty much decides the insurance policy rate of the car.


Age and type of car- If your vehicle is too old, then you have to pay a lesser amount for the policy renewal, because the value of your car depreciates over time. If your car is new and is the latest model, then the rate of your insurance will also be high.


Engine capacity- If your car has an excellent engine, that moves smoothly and also if your car runs on petrol, then you tend to pay higher insurance. This is because petrol cars are very expensive and their IDV is high as well.


Region- The regionthat you buy your car from does matter and has an impact on your car insurance policy. If you buy a car from a region where the standard of living is high, then your car insurance policy will be expensive as well.


IDV- IDV stands for Insured Declared Value. This indicates the maximum amount your insurers will pay you in case of total damage to your car. If the calculated IDV of a car is high, then the car policy insurance rate is high as well.


Is there a change in premiums after renewal?

A change in premium after the car insurance renewal can take place. It is possible that the rate of car insurance policy renewal increases. The third party insurance rates are governed by the IRDA.. Therefore there can be a hike in the premiums after renewal. If you ever receive a traffic violation card, then the rate of your car insurance renewal can be increased. Many a time mid-term rate is also changed as a fee. Therefore there can be a change in the premiums after renewal. Even the late fees can result in a change of premium renewals.