There could be numerous reasons due to which you end up missing the renewal of your car insurance. There could be an emergency at home or a hectic work routine, which could occupy your time and you might miss out on the date of your car insurance renewal. However, it is imperative that you not skip the renewal of your policy.
Your car insurance plan is a yearly contract, which is supposed to be renewed by the due date. If you fail to renew it there will be an insurance lapse, and any type of claim you make after the expiry of your policy will not be entertained by the insurance company. In case of an accident or a third-party liability, you will have to bear all the expenses yourself.
Consequences of lapse of your car insurance policy
If you fail to renew your car insurance plan, you might have to face the following consequences:
- If the insurance lapse duration is too long, the renewal of the policy could be rejected.
- If renewal is permitted by the insurance provider, there could be a high penalty or a fine.
- You might have to purchase a new policy, which can only be possible after an inspection of the car.
- You might have to pay a higher amount of premium on the new policy.
- You will lose the annual No Claim Bonus.
- You will face legal implication for driving a car without an insurance policy.
- Financial loss due to an unforeseen accident.
What steps should you take to renew your
If you have failed to renew your policy on the due date, you need to verify if there is a grace period provided for the renewal. Many insurance companies provide a grace period, which allows you to pay the car insurance premium and renew the policy even after the due date. The grace period allows you to renew the policy without having to pay penalties or late fee. This grace period can be anywhere between three days to one month, and it varies from company to company.
If there is no grace period or the same has expired, you need to contact the insurance company immediately to figure out an ideal solution.
If you have to buy a new policy, you can compare car insurance quotes and shortlist a plan based on the best premium amount and coverage offered. The insurance company will carry out an inspection of your car at the earliest. Additionally, you will have to arrange all policy documents, car documents, and keep the details of your past claims handy. You can conveniently buy car insurance online after conducting research on a trusted platform like Finserv MARKETS.
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