As the Covid-19 pandemic continues, unemployment has increased significantly, and people are more concerned about their financial security. From paying bills to paying insurance premiums, people are more cautious about the expenses. Here are different ways how you can save on your car insurance plan during this pandemic.
The recent pandemic has brought the world to a halt, and even India is experiencing nationwide lockdown for quite a few months. A major section of the population is locked up at home with almost no travel for weeks together. This has confused people whether to renew the Car insurance as most vehicles are off the road during the lockdown.
Despite the lockdown, it is paramount to renew your car insurance policy before the expiry date to avoid suffering from more losses. According to the Motor Vehicles Act in India, every vehicle must have a ‘third-party liability’ motor insurance cover. Let’s check out the reasons how renewing your car insurance would save you from incurring more losses.
Renew the policy on time
Not renewing your car Insurance before the expiry date will lead to policy lapse, and you would have to buy a new car insurance plan. A new car insurance policy attracts a higher premium as compared to the renewed one. Therefore, it is vital to renew the car insurance premium before the due date to refrain from paying any penalties or late fines.
Avoid Claim Rejection
Even during this lockdown, your car is at risk due to non-accidentals causes like a car breakdown, natural calamities, vandalism, or even theft. Without a car insurance plan, you will not be able to make any claims to the loss caused to your vehicle. So, with the timely renewal of your car insurance policy, you can avoid claim rejection.
Save your No Claim Bonus
You receive No Claim Bonus in case you have not made any car insurance claims during the policy term. The accumulated bonus, which can be as high as 50%, can be used to decrease the premium cost. So, if you do not wish to lose your accumulated NCB, then don’t avoid renewing your car insurance plan even during the pandemic.
So, now that you know how to save your extras by renewing your car insurance on time, you can also ask your insurance provider for financial relief in the following areas.
Relief on Insurance premium deadlines:
As already stated by the Finance minister regarding the relaxations of the premium due dates, you can ask the same from your insurance provider. In this way, you would have time to gather the funds and pay the premium without the insurance plans getting cancelled.
Waiver of penalty fees and late fines:
In case you have missed your insurance premium renewal date, you can at least ask your policy provider to waiver off the penalty or the late fine considering the pandemic.
Ask for discounts on your Insurance plans
As we all are aware of the lockdown and with hardly any use of cars, you can ask your insurance provider to give you a discount on your renewal or in case you must purchase a new insurance plan.
Cancelling your car insurance or not renewing your existing ones should be your last resort, even in this grave worldwide situation. Driving your car without insurance any day can call for huge penalties for violating the norms. If at all you wish not to spend more on your car insurance plan, you can go for basic third-party insurance for the time being.