Not everybody is as lucky as Cinderella to have a pumpkin transformed into a vehicle with a twirl of a wand! Most of us work very hard to buy and maintain a car. As a result, our car quite literally becomes one of our most prized possessions and we do everything to take care of it. But who exactly takes care of our car? You guessed it right - it is the car insurance that overlooks every car and makes sure it runs smoothly and in a carefree manner at all times.

So not only are we lawfully bound to get motor insurance, we also need it desperately. However, just buying car insurance isn't enough. You have to pay regular premiums and renew the policy when needed. Car insurance renewal is almost as important as buying the insurance in the first place. If you are on the verge of buying a policy renewal, keep the points listed below in mind.

1. When and Why Do I Have to Pay?

Car Insurance Policy Renewal needs to be done annually or semi-annually. Most commonly, you need to renew it within year of buying the policy for the first time. It doesn't have a fixed occasion and can literally be any day of the year. You usually are reminded of the renewal by the insurance company well in advance (30-45 days). You are either notified by mail or personally by your agent. It is important for you to renew the policy before it expires as often there is no grace period and your entire policy is declared null and void if you do not renew it in time. Make the payment on time as this tells your insurer that you are continuing with the policy (especially important in cases where there is no grace period). Alternatively, if you do not want to continue with the policy, inform your insurer as sometimes a grace period is offered and you may be charged for it.

2. Why I May Have to Pay More?

Sometimes the rates of the car insurance policy change at the time of renewal. This happens mainly due to two reasons. First of all, the overall insurance carrier rate may increase due to higher claim activities. The insurance company, to bear the expenses, may hike up the rates uniformly. Secondly, you may also have to pay more if in your previous term you had records of at-fault accidents, traffic violations, etc.

3. How Can I Pay Less?

You can gain immensely if you review your insurance carefully. Did you know that you are eligible to discounts? So go to the terms and conditions and speak to your agent extensively about the renewal discounts that may be available. This also the best time to make changes to your coverage, if you need any.
Taking a car out without insurance is a serious crime. So make sure you have motor insurance continually. Renewing an existing policy is a very simple process and it can be done online too. So do not delay. Renew your car insurance policy and stay covered at all times.

The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal

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You may write to the author at Deepak@myinsuranceclub.com