As a car owner, it is common knowledge that motor insurance is a regulatory requirement. Without one, you end up attracting hefty legal penalties. Thus, vehicle owners choose to buy a car insurance policy. But it isn’t enough to buy the policy only once. It needs to be renewed each period. Since these policies are valid for a limited time, their renewal is an important part of the vehicle ownership experience.
A car insurance policy is not only handy to ensure compliance with the law, but also protects your vehicle and safeguards you from legal liabilities such as injury to a third person and damage to their property. Depending on your insurance coverage, these features are available in your car insurance policy. To ensure your policy offers continued coverage, it is important to renew it on time. Failing to do so will leave you exposed to different perils that may bring a financial loss.
This article talks about why you should avoid missing a renewal date for your car insurance policy.
What are the consequences if your policy expires?
Here are some of the downsides of missing your car insurance renewal:
- The policy coverage ends after the last day of its validity. Thus, as a policyholder, you are no longer insured under the plan. Moreover, you are no longer legally allowed to drive your car without a copy of a valid insurance document. At this time, if you are questioned by traffic officials, you will be required to shell out hefty fines.
- If the same policy remains expired for more than 90 days, any accumulated no-claim bonus shall expire. Thus, the one benefit that helps you save on premiums lapses.
- Once your policy coverage ends, you will be required to obtain a fresh insurance policy which may require an inspection of your vehicle by the insurance company.
- When the policy has expired and an unfortunate accident takes place, the losses incurred at such time, to your car and even the legal liabilities to a third party, will have to be borne by you.
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Now that it is clear why you shouldn’t miss on renewing your policy before its expiry, let’s look at how you can renew your policy:
A few years back, the policy buying and its renewal process were limited to insurance agents or branch offices of the insurance company. But the digital revolution has made it possible to renew your policies online. You no longer need to set up an appointment with your insurance agent or visit the insurance company’s branch office. Instead, you can simply log on to the insurance company’s website, enter details of your existing insurance policy, make necessary amendments, and get your policy renewed at your convenience.
While a thirdparty car insurance policy is a minimum requirement, you can also opt for comprehensive coverage to extend the policy’s scope. This will help you include more events under the insurance policy. Further, you can also opt for an add-on to enhance your car insurance policy’s coverage.
Once you have shortlisted a few policies, you can make use of a car insurance calculator. It aids in comparing policies based on premium, as well as features that fit you right. * Standard T&C Apply
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.