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

Published: June 5, 2020 11:00 AM

It’s not only important to keep yourself safe during the lockdown, but also to take good care of your vehicles and renew your motor insurance policy on time.

Car Insurance, Car Insurance in lockdown, renew motor insurance in lockdown, NCB, Natural disasters, COVID-19It is advisable to renew your motor insurance policy despite the lockdown to keep your vehicles covered against any unforeseen emergency.

The COVID-19 pandemic and the lockdown have not only changed our lifestyle, but they have also confined the entire world to stay within their homes. From our travel habits to outdoor shopping, everything has changed, and due to the lockdown many people have not been using their vehicles for more than two months now. People are in two minds whether to renew their motor insurance policy or not. Many people are allowing their motor insurance policy to expire and are waiting for restrictions to get lifted before renewing it. However, it is advisable to renew your motor insurance policy despite the lockdown to keep your vehicles covered against any unforeseen emergency.

The following reasons explain why it is important to renew your motor insurance policy even during a lockdown:

No Claim Bonus (NCB) can lapse without a renewal

NCB or No Claim Bonus is a discount offered on Own Damage Premium (OD) for not claiming your vehicle insurance during your policy period, i.e. for each claim you get a free year. NCB can be gained, starting from 20 per cent, and can be accumulated with a maximum of 50 per cent over five years. But if you do not renew your policy, you might lose your accumulated NCB. So, in case you do not want to miss out on the NCB gained, then the insurer should not forget to renew their motor insurance even during this lockdown.

Natural disasters can cause damage to your vehicle

Natural calamities can occur anytime and come without any warning. Calamities like cyclone, flood, earthquakes, landslides, and fire come uninvited and can cause damage, which is beyond anyone’s control. One of the recent examples is the cyclone ‘Amphan,’ which ravaged the eastern part of the country. Also, the damage that can occur due to a tree branch or any other heavy object falling on your vehicle can lead to the need for claiming your motor insurance. Therefore, it’s better to keep your motor insurance valid if you wish to keep your vehicles safe during the lockdown.

Excess heat can lead to self-damaging the car

As summer arrives, heat waves have taken a toll on the country, causing a rise in heat strokes and other heat-related ailments. It becomes our utmost responsibility to not only care for our safety but also protect our vehicles from getting damaged. We should cover our vehicles to protect them from the dirt getting stuck to the outer surface. It also helps in keeping your vehicle protected from the sunlight that may result in heating the exterior surface as direct sunlight can affect the car paint and make it weak. Also, the leather used inside the car can get affected by the sun’s rays. In such a case having a valid motor insurance can help you save burning a hole in your pocket for repairs.

Motor insurance lapse can lead to additional expenses

It is advisable to not let your car or bike insurance lapse, especially after the 30 days grace period of insurance renewal. Also, in case of a comprehensive policy, when it lapses, the insurance company will have to get your vehicle verified again before the policy can be renewed. Also, later when you renew it, although you can backdate your policy, yet you will still be paying for that extra time when you didn’t renew. Hence renewing it in time makes sense.

Zero-touch Insurance – The Saviour

While people are taking precautionary measures and following social distancing, the best way to renew your motor insurance policy during the lockdown is online, i.e. ‘Zero-touch Insurance’. Customers can go to the renewal section of the respective insurance company and enter their details, i.e. policy number and choose the policy. Once the policy amount has been paid, your insurance policy will be renewed without any hassle.

These are a few important reasons why one should not be negligent about renewing motor insurance policies. It’s not only important to keep yourself safe during lockdown, but also to take good care of your vehicles and renew your motor insurance policy on time.

(By Vivek Chaturvedi, Head of Marketing, and Direct (Online) Sales, at Digit Insurance)

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