What Happens if Car Insurance Expires
Every car insurance policy comes with an expiration date. The policy expiration could be one year from the date of activation or even 3 years, depending on the policy time period chosen by you. As per the New Motor Vehicles Act, 2019, all vehicle owners are required to have at least third-party insurance if they wish to drive their cars legally on Indian roads.
If you are caught driving your car without valid insurance, you may be fined up to ₹2,000 to ₹4,000 or may even be imprisoned. Further, if you are involved in an accident and do not have insurance, you will be liable to pay for damages caused to the third party. So it’s vital to renew car insurance before expiry.
Three Categories Concerning Expired Car Insurance
Let us explore the three categories of car insurance renewal after expiry:
Renew Expired Car Insurance Immediately After Expiry
If your car insurance plan has expired, your insurer will most likely send you a notification through SMS or email informing the same. If you renew your insurance within a day or two after expiry, you would not have to face any negative consequences or extra fees. You will also be eligible for using your No Claim Bonus.
Renew Expired Car Insurance Within Grace Period
Generally, insurance companies offer a ‘grace period’ of 30 days. You can renew your car insurance plan within the grace period offered by your company without any negative consequences or additional fees.
Renew Expired Car Insurance After the Grace Period Has Expired
If you renew expired car insurance after the grace period has passed, you might have to purchase a brand new car insurance plan. Moreover, your car insurance premiums could also go up. Any accumulated No Claim Bonus will not be available if you renew your car insurance after the expiry of the grace period.
Things to Do When Car Insurance Policy Has Expired
If you have failed to renew expired car insurance, you will need to take the following steps:
Stop Driving Your Vehicle
This is the first and foremost thing you must do once your motor insurance plan expires. Since third party liability insurance is mandatory for every vehicle, driving your car without one is illegal in India. So, make sure that you do not drive your uninsured four-wheeler on roads to commute or even run errands.
Review Your Old Insurance
If your car insurance plan has expired, take some time out to review your old policy. Try to understand if it was sufficient for you. In case it was, you can renew the same policy. However, if it wasn't, do your research, check the add-on covers offered by various insurers, and choose a plan that suits you.
Get in touch with your insurance provider and inform them that you wish to renew an expired car insurance policy. If you want the process to be quick and seamless, go for the online process. Ascertain that your car is available for any inspection that the insurance company may conduct.
Can a Policy be Renewed From a Different Insurance Provider
Yes, you can choose to renew your car insurance policy from a different insurer at the time of renewal. Fortunately, you can also carry forward your No Claim Bonus to the new insurance provider. However, it is recommended that you buy a new insurance renewal policy before your existing plan expires. It will avoid any legal or financial issues that may arise out of expired car insurance.
There are multiple risks associated with having an expired car insurance policy. These include risks of failure to comply with the motor laws of India as well as the liabilities that may arise out of an unfortunate accident. Above all, if you get injured in a car accident whilst your car is not insured, you cannot access the benefits of the Personal Accident Cover as well. You must, therefore, be mindful of your car insurance expiry date and ensure that you renew the policy on time.
If you are looking for an adequate car insurance plan, check out the range of motor insurance policies available on Bajaj Markets. You can compare different plans and buy the best-suited car insurance for you and your vehicle.