What happens if My Car Insurance Expires?

Car insurance

As we all know, motor insurance is mandatory for every vehicle plying on the road in India. Driving your car without insurance is forbidden by law, and is not at all advisable. Therefore, make it a point to purchase and renew your car insurance on time.

Motor insurance can be easily renewed online, saving you from the hassles of visiting the insurance provider’s branch office. But, often due to various reasons there can be instances when we miss out on renewing insurance on time. However, this doesn’t mean that you cannot renew your policy now. In this blog, we will discuss about what you need to know about a lapsed car insurance policy and what steps to undertake if your insurance policy has expired.

What Happens when you fail to Renew Car Insurance on Time?

If you do not pay premium to renew a policy on time, the policy will lapse, and consequently, its coverage and benefits will become limited.

No Claims Bonus (NCB) is the bonus that you accumulate if you do not make any claim during a policy term. NCB increases for every subsequent claim-free year, it starts at 20% for the first year, and then increases to 25%, 35%, 45% and 50% (maximum limit) in the subsequent years.

If your policy lapses for more than 90 days, the NCB that you have accumulated over the years will be lost. And as a consequence, this may result in higher premium on renewal. Furthermore, you will be unprotected against any damage or loss arising out of an accident and related third party liabilities, if you do not have insurance. Also, driving your vehicle without insurance is an offence punishable by law. So, the best way out is to keep track of your policy renewal date, and renew it on time.

Steps to follow if your Car Insurance Policy has Expired

You must be aware that if your car insurance policy has expired, you are at risk. If your drive an uninsured car and anything happens to your car, you won’t receive any kind of insurance cover and you will be liable to pay out-of-pocket for any damage or loss caused as a consequence of the accident.

Here are the steps that you need to follow in case your car insurance policy has expired: –

  • Contact your insurer

The first step would be to contact your insurer at the earliest. As an insurer will have expertise in the matter, it can reinstate your car insurance without much hassle. However, if you wait for a longer time, it may get harder for you to find an insurer who will be willing to insure your car; especially of you have an old car. And if you delay unnecessarily, then you may end up paying higher premiums than otherwise.

  • Avoid Driving your Car

Another important thing to remember if you haven’t renewed your policy is that, you should avoid driving it till you renew your policy. If you drive your car with an expired car insurance policy, you would put yourself at further risk. If you drive your car without insurance, then you are exposed to numerous risks, such as an accident, or a legal issue, as driving a vehicle without an insurance policy is an offence that’s punishable by law. An accident can occur any time and in such an event, you will have to pay out-of-pocket for the damages incurred for your own car, as well as to any third party involved.

  • Choose your Policy

The next step would obviously be buying a new motor insurance policy and for that you need to choose a policy. An excellent option is to look for car insurance online as you can read about all policy features and also get instant insurance quotes. If you want to switch your insurance provider and buy a new policy from a different insurer, you can compare the various options online to make an informed decision.

  • Keep Documents Handy

After you have decided on which policy you want to purchase, it would be wise to know the documents that are required for renewal and keep them handy. You can get in touch with your insurer to know about the documents that will be required during the renewal process. Keep handy a copy of your previous policy and the registration certificate (RC), other details such as car brand and model, age, registration location and first registration date, may also be required. Collate all the documents required for renewing your expired policy, before you purchase a new car insurance policy.

  • Book Appointment for Vehicle Survey

As your vehicle insurance has expired, the insurer will send a surveyor to check for any pre-existing damages to your car and review the car condition, before giving approval for insurance. Set up a survey appointment at the earliest in order to avoid any further delay and increasing costs, as the inspection is chargeable and has to be paid by the insured. Based upon the condition of your car, the surveyor will determine your eligibility for insurance. Also, the surveyor might set a predetermined fixed deductible according to the extent of the damage to the vehicle.

  • Buy a New Policy Immediately

The inspection is valid for a very specific amount of time; hence it is advised that you purchase the policy as soon as the inspection is completed.  Buying car insurance online is the most ideal option here.

Why Renew your Policy Online?

Thanks to the internet, finding the best car insurance policy has become quite easy. You can now read complete policy information online including policy features and benefits, exclusions, and terms and conditions, and compare to make a choice. Also, get instant insurance quotes online by entering your car insurance requirements on insurer’s website.

It is simple and quick to buy or renew car insurance policies with a click of a mouse, minus the lengthy paper work and time wastage. Explore insurance policies online, compare policy benefits and premiums, find the best insurance quotes and buy a policy, within minutes…Need to add introduction about IFFCO Tokio.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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