What Every Owner Should Know About Private Car Insurance and Bike Insurance Renewal in 2025

Renewing your private car or bike insurance is not just a routine task, but also a legal necessity. As per the Supreme Court's instruction, all motor insurance policies must include a minimum of three years of third-party cover. Additionally, under the Motor Vehicles Act, 1988, having valid third-party insurance is mandatory for all vehicle owners in India.

So, failing to renew vehicle insurance on time can lead to penalties and the loss of valuable benefits like the No Claim Bonus (NCB), especially if the policy lapses for over 30 days. Hence, this blog will guide you through everything you need to know about renewing your vehicle insurance in 2025.

8 Tips to Renew Car or Bike Insurance

Here are some tips for you to make an informed decision on how to get the best option for your private car insurance or bike insurance renewal.

1. Review Your Current Policy: Your car ages, and depreciation depends on your IDV. This may change your decision to continue with an existing plan or choose other coverage plans.
2. Compare Different Policies: Compare your existing policy with other insurance policies. Make sure you compare the coverage pattern, price, and Claim Settlement ratio (CSR). This will help you get the best policy for you.
3. Purchase Your Insurance Online: If you previously bought your insurance offline, then you must get a bike insurance renewal from an online insurance provider. This is because digitisation has made insurance operations a lot simpler and faster.
4. Loyalty Discount: A lot of insurers provide a loyalty discount to their customers for being a loyal customer for multiple years. Check if your insurer has a history of providing loyalty discounts before transferring to a different insurer.
5. Check for Transfer of NCB: NCB is a discount you receive for not claiming in a year. The rate of discount increases every year you pass without making a claim. This rate of discount can go up to a 50% discount on premiums. However, make sure your accumulated NCB transfers too, when you renew your insurance.
6. Update Your Information: While renewing your insurance, make sure all the personal information, such as your address or contact number, that you provide is correct and up to date.
7. Read the Terms and Conditions: When you renew your vehicle insurance after conducting critical research on their trustworthiness, price and coverage, make sure to read the terms and conditions of your chosen insurer thoroughly.
8. Install Anti-Theft Devices: Doing this helps to boost your Insured Declared Value (IDV) at the time of insurance renewal.

Best Time to Renew Your Vehicle Insurance

The best time to renew your car insurance is when you have sufficient time to evaluate your coverage requirements, research around, and select the most appropriate insurer. Experts suggest starting the renewal process 15 to 30 days before the expiry of your existing policy. Early renewal not only provides ongoing coverage but also prevents policy lapse risk.

If you are late for the renewal date, do not worry. Most insurance companies have a 15 to 30-day grace period within which you can still renew the policy without forfeiting earned benefits. But if the policy continues to be in lapsed mode after this grace period, you might lose your No Claim Bonus (NCB) and also have to go for a vehicle inspection.

Do keep in mind, though, that if your only expiring policy is your Own Damage (OD) but the Third-Party (TP) cover is still active, you can only renew the OD cover separately within the running TP period.

5 Things To Consider While Choosing Your Car or Bike Insurer

Some important factors that you must consider before finalising your car or bike insurance policy for renewal are:

1. Coverage Type: Analyse your current coverage needs based on the usage, financial feasibility, depreciation rate and IDV of your vehicle.
2. Update the Riders: You can adjust the add-ons of your car or bike insurance at the time of renewal. Assess all the riders and choose the ones that you genuinely require.
3. Network Garages: Find out the location of garages that your insurer has in its network. Choose the one with the highest density of network garages near you.
4. CSR: Claim Settlement Ratio or CSR is the metric that shows how often your insurer successfully settles a claim. Generally, a CSR of 90 or above is considered good.
5. Grace Period: Renew your insurance within the available grace period to prevent losses.

Final Thoughts

Now that you have a clear understanding of the various factors and metrics under the car and bike insurance policies, it will be easier for you to make an economical decision when renewing your vehicle insurance. Remember, you can also customise your insurance plan by buying additional Add-ons. It is also possible to regulate your IDV to get the most suitable insurance plan for you.

Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel

Read Also : Swayamsiddha Ladies Club Supports Old Age Home Under CSR