Minus/plus icon
ResourcesExplore the full ACKO experience and make the most of your plan

Home / Car Insurance / Articles / When is the best time to renew your car insurance?

When is the best time to renew your car insurance?

Team AckoJan 17, 2024

Your vehicle is an essential part of your life, and you should make sure that your car is insured at all times. Car insurance is the most effective way to secure yourself against financial loss arising from accidental damages or even theft of your car.

So, you may wonder when is the best time to renew your car insurance to ensure there is continuity of insurance coverage for your car. In this article, we shed some light on the right time for car insurance renewal so that there is continuity in the insurance coverage for your precious car.




When to renew car insurance?

Whether you buy car insurance online or offline, the policy period has a commencement and expiry date. The policy period is generally for a year unless you have opted for a multi-year policy (3 years). The Insurance Regulatory and Development Authority of India (IRDAI) has authorised general insurance companies to issue a multi-year or long-term car insurance policy for up to 3 years in car insurance. Here is when you need to renew your car insurance.

  • Those looking to avoid the expiry of the policy due to non-renewal on a yearly basis can opt for the 3-year car insurance plan.

  • If you have purchased the annual or short-term car insurance plan, it is best to renew car insurance within 15 to 30 days of the expiry date. For example, if your car insurance policy expires on 31 March 2022, it is ideal to renew the policy from 1 March 2022.

  • If you have forgotten to renew the policy, you may check with your insurer if there is a grace period by which you can renew the plan. The grace period can vary between insurers. But, please note that during the grace period, your car insurance policy is considered null and void, and no claims will be accepted. 

Moreover, if the gap between the expiry and renewal dates is considerably long, the premium may increase due to vehicle inspection and resetting of the No Claim Bonus (NCB). Hence, renew motor insurance online by the renewal date to enjoy the insurance coverage for your car at all times.

What are the options when your car insurance policy expires?

A car insurance policy expires when it completes its policy period. If your motor insurance policy is approaching the expiry date, you have the below options.

  • Renew from the existing insurer.

  • Switch to a new insurer to renew the plan.

  • And, customise it as per your requirements (such as including add-ons, purchasing a multi-year plan, etc.).

What happens if your car insurance policy expires?

If your car insurance expires, you do not receive financial protection against third-party liabilities or damages to your vehicle or even against vehicle theft. Here are some of the disadvantages of not renewing your car insurance policy.

  • Policy becomes null and void.

  • The insurer will not entertain claims against the policy.

  • If you do not renew the plan within the stipulated time, you may lose the accumulated No Claim Bonus (NCB).

  • Financial losses in case of accidental damages to your car.

  • Penalty for driving the car without valid insurance.

  • If there is a significant gap between the expiry date and the renewal date, there may be an increase in the insurance premium.

  • And, the insurer may want to inspect the vehicle before issuing an insurance policy.

Questions to ask yourself while you renew your car insurance policy

If your policy is up for renewal, you have the opportunity to review the coverage and customise it as per your needs. Here are some essential questions you need to ask yourself while renewing your motor insurance policy so that you get the maximum coverage for the premium.

  • Do you need to cover passengers in your car?

  • Do you need to buy a Comprehensive Car Insurance Policy if you currently have only third party car insurance?

  • Do you need add-on covers to enhance the coverage?

  • Have there been any upgrades to your car, such as installing an anti-theft device?

  • Do you need to change your personal details?

  • Have you informed the insurer about new modifications to your car, if any?

  • Are there any discounts that you can take advantage of?

Can I save money by switching to a new car insurance plan?

Yes, you can save money by switching to a new insurance provider, especially if you choose a digital insurer such as ACKO. Our online platform lets you buy or renew, and raise claims without physical paperwork. You can perform all of these activities at the comfort of your home through an internet-enabled smartphone/computer.

The online environment enables you to compare car insurance quotes and assess the benefits and features of the new plan.

It means you could stand a chance of saving your money while renewing the insurance plan for your car by comparing quotes or even switching to a new insurer rather than renewing the plan with the existing insurer.

Why is it necessary to renew your car insurance policy?

Motor insurance acts as a financial shield for your car. You must understand the important benefits of car insurance renewal so that your vehicle is insured at all times. Renewing your car insurance policy on time ensures you enjoy the following benefits.

  • Save money from repair costs

  • Safeguard against accident-related legal issues

  • Leverage on the benefits of the policy

  • Live stress-free

  • Avoid penalties

Also, read: Difference Between Car Insurance Non-renewal and Cancellation

Best way to renew car insurance

Renewal of car insurance need not be a cumbersome task. With digital insurers such as ACKO, the process is instant and hassle-free. Traditionally, you had to visit the branch or depend on a middleman to renew the policy. But, that has changed with the Internet. The best way to renew car insurance is through the online platform. Here is how you can renew car insurance online instantly.

  • Step 1: Visit our website or mobile app.

  • Step 2: Enter details of your car and select the plan as per your requirement.

  • Step 3: Pay the premium online and receive the policy almost instantly through an email.

Tips and Tricks to save money while renewing your car insurance policy

Apart from switching to a digital insurer, there are several other ways to save money when you renew your car insurance plan. Your car requires a well-balanced insurance plan that can cover accidental damages, theft, and third-party liabilities. Ensure you read the inclusions and exclusions before buying the plan, and remember to renew your car insurance plan before it expires.

Frequently asked questions

Here are some common questions related to car insurance renewal.


How long before can I renew my car insurance policy?

It is ideal to renew your car insurance policy before 15 to 30 of its expiry date to avoid rejection of claims and the possibility of a higher premium.

What should I look for when renewing my car insurance policy?

As mentioned above, renewal is the right time to revisit the coverage of the existing plan and make appropriate changes to suit your current needs. You may want to consider including car insurance add-on covers or switching to an online insurance company for faster services.

Can I renew my car insurance policy after the expiry date?

Yes, you can renew your car insurance policy after the expiry date. However, the insurer is not bound to provide coverage until you renew the expired plan. Also, the No Claim Bonus (NCB) that you may have accumulated is valid for a certain period of time, after which it may lapse. Ensure you check these details and renew the plan within the expiry date.

When does the car insurance rate become cheaper?

The car insurance rate becomes cheaper even as it depreciates over time due to regular wear and tear. However, there is no time or period when car insurance policies are more affordable. The main factors that influence the car insurance rate are your car's current market value, year of registration, model, and location.

Do car insurance prices increase closer to the expiry date?

No, car insurance rates mostly depend on the Insured Declared Value (IDV)/current market value, location, year of manufacture and the model and are not based on the time factor.

Which month is car insurance cheaper?

Car insurance price does not depend on the month or a time frame. As mentioned, it mostly depends on the current market value of the vehicle, the location, year of manufacture and the model.

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.

Explore more:


Want to post any comments?


Upto 85% off on Car Insurance!

Buy or Renew Car Insurance in 2 Minutes ⚡

Car number

Looking to insure brand new car?

Zero commissions, big savings

quote icon

Get Quote

quote icon