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Why is it important to renew your motor insurance despite the lockdown?

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Published on August 8, 2020. EST READ TIME: 5 MIN

Every responsible car owner insures his or her vehicle against financial losses that can arise due to unforeseen events like accidents, fires, and natural or manmade calamities. However, you need to be equally attentive about timely car insurance renewal, to avoid unnecessary fines. And this rule holds true even when the entire country is in the grip of the coronavirus. So, if you are wondering why you should renew your motor insurance, even when your vehicle is just parked in the garage during the lockdown, read on.

Reasons to renew motor insurance despite lockdown

• No Claim Bonus
  One of the biggest reasons why you should renew your motor insurance before the expiry date is the No Claim Bonus. Motor insurance companies have a No Claim Bonus cycle, which greatly help in reducing the premium amount upon renewal. This bonus can reduce your premium by 20% to 50% over 5 years. So, do not miss out on the accumulated bonus, and instead, renew your motor insurance on time.

• Natural disasters
  By renewing motor insurance, you can protect yourself financially against natural disasters that might damage your vehicle. It is especially advisable to get a comprehensive insurance policy that covers natural disasters, and renew it on time. No one knows when a natural disaster like an earthquake or cyclone or flood might strike.

• Excess heat during summer and monsoon time
  Intense summer heat or water logging due to heavy rains can damage vehicles that remain in an unused condition for long. While you should cover the vehicle when not in use and start it time and again to prevent battery jams, having motor insurance is the best idea. It can cover the financial losses that arise due to repairs or replacements of parts.

• Fire, theft or vandalism
  Even when the vehicle remains in the garage or your parking slot, there are risks that may potentially give you financial troubles. An example is fire, which may occur due to a number of reasons, and if the vehicle remains uninsured, it will burn a big hole in your pockets. Also, thefts and vandalisms are common occurrences, and in case such a misfortune occurs, you need to have a valid motor insurance policy to secure yourself financially.

• Prevent vehicle verification again – maintain social distancing

The current pandemic calls for social distancing to prevent the coronavirus from spreading. So, if you do not renew your motor insurance on time and let it expire, the vehicle will have to be inspected again when you decide to take on the insurance again. This will mean human contact. Why go through that trouble, when you have the option of online car insurance renewal? You can get it done with just a few clicks.

Concluding thoughts

Lockdowns have started easing all over the country and people are gradually venturing outside in their personal cars to maintain distancing and stay safe. But, driving without a valid insurance can lead to a fine of up to Rs. 2000. So, before taking out your car for a drive, make sure your motor insurance is renewed. If you ignore this, you will have to get your vehicle inspected again, and loss of No Claim Bonus plus additional costs may drive up the premium amount.

So, renew you motor insurance online and continue to enjoy financial protection against any unforeseen circumstances. Simply visit your insurance provider’s website and enter your policy number, choose any add-ons that you wish to, and pay the premium online.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 7,600+ network garages, you can be assured of help in event of any damage to your vehicle".

Few other articles

Factors Affecting Motor Insurance Premium

Motor Vehicle Amendment Act 2019-it’s Implications

Car insurance renewal checklist to follow

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