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Understand Insurance Renewal And Its Related Concepts

by Arpita Wadhawan
Insurance Renewal

Applying for an Insurance policy is very tricky and applying for renewal of Insurance can also make you bang your head. Since the guidelines of the policy keep changing every year, the policy you have registered for might not be suitable for you during renewal as the rates might not be the same while purchasing a new policy. There are many cases where the rates of the insurance policy and the guidelines are the same during the time of renewal and the person who is applying for insurance has an option to increase or decrease the premium amount for the insurance policy.

The process for renewing insurance policy differs according to the policy taken like a vehicle, health, critical health, flood, home, and other insurance policies. The insurance policies for vehicles can be renewed every six months or annually, post the long term insurance policy taken. The option for renewal is sent via mail and email 30 to 45 days in advance before the original policy expires, It gives you enough time to cross-check other insurance policies available and will help you choose whether you want to renew or opt for new policy altogether.

Increase in the Insurance policy rate during the renewal is a plausible case as the economy changes and the prices are set by the government, the price for the premium and the interest rates will also change. The economic factors do affect insurance policy rates almost every year. Renewal of policies is a common process for an Insurance company hence they will be able to calculate and tell you how much is the difference between the insurance rates which you were paying earlier and the rate you will have to pay for renewal.

Renewal also depends on one policy to another policy as some insurance companies do not make any changes to the insurance rates whereas other companies tend to increase or change the rates of the insurance policy which result in getting different amount during the coverage or pay out of the insurance money.

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