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Is online car insurance renewal the best option right now?

Team AckoAug 8, 2022

As mentioned in The Motor Vehicles Act, 1988, every motor vehicle owner must possess insurance. But when you buy a policy, it comes with an expiry date. Hence, you should renew your car insurance plan before its expiration. 

You have the freedom to choose between online or offline insurers for the renewal process. However, choosing to renew car insurance online offers greater convenience than a traditional offline approach. Apart from the general convenience, online insurance renewal seems more beneficial in the current pandemic situation. 

In this article, we will tell you why you should opt for the online process of car insurance renewal over the traditional offline process.

Is Online Car Insurance Renewal the Best Option Right Now?

Is online car insurance renewal beneficial?

The most significant advantage of online car insurance renewal is the ability to purchase a policy conveniently. You can complete the whole process from the safety of your home without visiting an insurer’s office. 

Online renewal at ACKO saves you from a lot of hassles associated with traditional methods. You don’t have to physically visit an insurer’s office and wait for your appointment.  We provide a contactless way of getting the insurance renewed, which is practical in the current pandemic situation. 

How to renew car insurance online from ACKO

At ACKO, we make car insurance purchases hassle-free. Both a website and a mobile application are available to renew car insurance online. You can complete the renewal in just three steps, as mentioned below.

Step 1: Enter your car’s registration number.

Step 2: Add a few details of your vehicle and previous insurance.

Step 3: Pay and renew your policy online instantly.

Benefits of renewing car insurance online

Below is a comprehensive list of how you can benefit from online car insurance renewal.

1. Assurance of safety

Safety is probably the most significant factor to consider for car insurance policy renewal online. You would want a policy to be genuine and authorised by the Insurance Regulatory and Development Authority of India (IRDAI). All authentic insurance companies are regulated by the IRDAI, which is a government body that supervises insurance companies. 

Renewing your policy from a renowned, IRDAI authorised digital-first insurer like ACKO General Insurance ensures authenticity and safety along with excellent features. 

2. Low-cost policies

Digital insurers save operational costs due to online infrastructure. The online platform helps to avoid the need for middlemen, also resulting in operational savings. As a result, you get to renew a motor insurance policy at a lower cost than usual prices.

Moreover, many digital insurers offer discounts on special occasions, festivals, etc. You can use such discounts to decrease the cost of policy renewal further. 

3. Ease of policy comparison

Before buying an insurance policy, it is wise to compare different options offered by different insurers. You can look into multiple alternatives and match them with your coverage requirements. 

At the same time, online platforms let you compare car insurance prices of policies before choosing one. You can visit each shortlisted online portal and analyse their policies side by side. 

4. Quick and instant renewal

Online insurers have made car insurance purchases and renewals almost instant. You can obtain policy quotes and read all necessary information online to select a plan. 

Once you pick a policy, the renewal requires you to simply enter a few details of your vehicle and previous insurance plan. Then, you can make the payment and receive the policy document within a short period of time.

5. Paperless experience

Renowned digital insurance companies have removed physical paperwork from car insurance purchases/renewals. For instance, you can buy or renew a policy with zero physical paperwork at ACKO. 

The process simply involves filing a few details of your car and previous insurance. You can pick the desired policy coverage type and renew instantly with an online payment method.

6. On-time reminders

The online renewal of car insurance saves you from missing the next expiry date of your policy. The digital insurance companies also send on-time updates and reminders. Such reminders inform you about the necessary tasks related to policy management. Plus, you get to know about new discounts and offers.

7. Add-on covers

A few insurance companies offer coverage beyond basic plans. Such additional coverages are called add-on covers, which you can purchase with Comprehensive Insurance Plans. An add-on allows you to include coverages, benefits and services that are not a part of a basic policy. 

Based on availability, you can pick one or more car insurance add-on covers from your insurer. Some of the common add-on covers include Roadside Assistance Cover, Zero Depreciation Cover, Engine Protection Cover, etc. 

8. Easy transfer of No Claim Bonus (NCB)

No Claim Bonus or NCB is a discount you get for not raising any claims in the previous years. This NCB discount is transferable from one insurer to another. 

However, the NCB transfer process requires some time if you follow an offline approach. On the other hand, an online insurance buying infrastructure allows you to transfer NCB quickly while renewing a policy. 

Importance of on-time motor insurance renewal

It is illegal to drive a vehicle with an inactive insurance plan. Plus, on-time renewal of motor insurance is essential to avoid potential financial liabilities that may incur due to an accident. 

With an option to renew car insurance online, you can renew your policy before it expires. Not only can you save on premium but make the entire process quick and hassle-free. 

Also, read: Why is it important to renew car insurance on time?

All in all, shopping for a vehicle insurance plan online seems more convenient than regular procedures. Even the top authorised insurers are available with instant policy purchase and renewal services. Plus, you obtain 24*7 access to the services without booking appointments and visiting the insurer’s office.

Also, read: Can You Have Two Insurance Policies on the Same Car?

Frequently asked questions

Below are the commonly asked questions answered about car insurance renewal online.

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Does car insurance renewal get more expensive for an expired policy?

When you decide to renew your policy, the insurers ask whether the previous policy is active or expired. Generally, the renewal premium increases for an expired policy.

When should I renew my car insurance plan?

Technically, you should renew car insurance before it expires. However, it is advisable to begin your effort 15 to 30 days before the last day of renewal. This way, you will get enough time to get quotes from multiple insurers and compare them thoroughly. 

What makes my car policy premium go up every year?

The premium for Third-party Car Insurance is decided by the IRDAI. However, a Comprehensive Insurance Policy premium may differ from insurer to insurer. 

Usually, insurance companies analyse multiple factors every year to revise the insurance premium rates. This review involves factors like your location, history of car insurance claims, Insured Declared Value (IDV), etc. 

Based on such an annual analysis, the premium may increase. Sometimes, you may also experience an increase in the premium if your insurer updates the terms or rates of a policy. 

Is there a way to get a discount while renewing car insurance?

Yes, you can get discounts on policy renewal in several ways. The most helpful method is earning a No Claim Bonus and using it for a discount on your renewal premium. You can also install anti-theft or security devices in your car, which allows insurance companies to offer discounts on premiums.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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