Send us an Email

+233 (0) 205719499

Make a call

 When is the best time to renew your car insurance?

When is the best time to renew your car insurance?

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).

  • 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. Hence, renew motor insurance online or offline 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?

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 the best insurer such as Priority Insurance Company Ltd. Our platform lets you buy or renew, and raise claims without stress. You can perform all of these activities at any of our over 32+ branches nationwide

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

Best way to renew car insurance

Renewal of car insurance need not be a stressful task. With over 32+ branches insurers such as Priority Insurance Company Ltd, the process is instant and hassle-free.

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 the best insurance company for faster services like Priority Insurance Company

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.

Leave a Reply

Your email address will not be published. Required fields are marked *