A Step-By-Step Guide On What To Do When Your Car Insurance Expires

by Taylor

Renewing an expired car insurance policy in India is crucial to maintain coverage and protect oneself from financial risks and legal consequences. There are different scenarios for renewing an expired online car insurance policy, each with its implications.

  1. Instant Renewal Of Car Insurance Following Expiration:

If you still do not renew your policy despite reminders, you may receive a notification that your coverage has expired. However, driving during this brief period may not be advisable, and the insurance provider may not necessarily increase premiums or require a vehicle inspection. Instantly renewing the policy online is recommended to avoid driving uninsured. You can use a car insurance premium calculator to estimate the costs of premiums to be paid.

  1. Car Insurance Renewal After Grace Period:

Many insurance providers offer a grace period (typically 30 to 90 days) for policy renewal. While there is no guaranteed coverage during this grace period, renewing within it preserves any applicable No Claim Bonus concession. It’s emphasised that driving an uninsured vehicle should be avoided even during the grace period. Renewing within the grace period helps prevent negative consequences like higher premiums.

  1. Car Insurance Renewal Following A 90-day Policy Expiration:

Delaying renewal beyond 90 days can lead to consequences such as vehicle inspection, cancellation of No Claim Bonuses, and significantly increased payable premiums. Driving an uninsured car may result in legal repercussions and fines, as third-party insurance coverage is mandatory in India.

Dangers Of Having A Lapsed Car Policy:

  1. No Cover And Claim Loss: An expired policy means no coverage, making you responsible for all losses incurred by your car in events like fire, riot, or flood. Timely renewal is crucial to maintain continuous coverage.
  2. Legal Difficulties: Driving with an expired policy can have legal consequences, including monetary penalties or imprisonment for repeated offences. Prompt action to renew is essential to avoid legal troubles.
  3. No Claim Bonus (NCB) Loss: If the policy isn’t renewed within 90 days of expiration, the accrued No Claim Bonus may be forfeited. Losing NCB can result in high costs, especially if the concession is substantial. *

How To Renew An Expired Car Insurance Online:

  1. Access Account:Visit your insurance provider’s website or download the mobile app to access your account.
  1. Modify Or Stick with Current Plan:Adjust the plan if needed or continue with the existing one.
  2. Pay And Receive Updated Policy:After selecting the policy, make the payment and receive the updated policy paperwork.

Renewing an expired online car insurance policy in India is time-sensitive and critical to avoid financial risks, legal troubles, and loss of benefits like the No Claim Bonus. Whether renewing instantly, within the grace period, or after a 90-day expiration, taking prompt action is essential to maintain continuous coverage and enjoy the associated benefits. Opting for a zero depreciation (zero dep) in your car insurance policy ensures that the insurer covers the entire cost of repairing or replacing damaged car parts without factoring in depreciation, providing comprehensive coverage for your vehicle. Claims are subject to terms and conditions set forth under the motor insurance policy.

*Standard T&C Apply

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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