The renewal of car insurance after its due date is of utmost importance as it ensures that your car stays financially protected during any unforeseen events. Moreover, as per the Motor Vehicles Act of 1988, you must have a valid car insurance policy to drive your car on Indian roads. Hence, you must renew your car insurance on time to avoid being caught without valid car insurance and being penalised.
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 your car insurance before expiry.
How To Renew An Expired Car Insurance Policy
If you are driving without valid car insurance, stop it immediately as it is a strong violation of law that can cause major consequences including excessive penalty and imprisonment. Not only that you will also not get any protection from your insurance provider in case of an accident.
If you have failed to renew your car insurance, you must renew it in the break-in period of 90 days that starts from the date your car insurance expires, below are the steps to renew an expired car insurance policy,
Look for the most suitable car insurance based on your age, your car’s model, engine capacity, and other details
The second step is to go through an inspection process, you can either choose to go for an inspection by your insurance provider or do a self-inspection by making a video of your car and mentioning a few details as per the insurance provider’s policy
If your insurance provider is conducting the inspection then they may schedule an inspection date where a representative will be inspecting and verifying the condition of your car
Once the inspection process is complete, you will be issued with a new insurance policy.
Please note, there is no coverage offered by the insurance provider during the 90-day break-in period.
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 expires, 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.
Advantages of Renewing Car Insurance Policy Timely
There are a lot of advantages of renewing your car insurance policy on time,
Takes care of financial liability
No matter how carefully you drive, there are chances you get involved in an accident causing damage to a third-party person or property. If you have renewed your car insurance on time, your insurance provider will take care of the financial obligations on your behalf.
Don’t end up paying repair charges from your own pocket
If you have already renewed your car insurance, you will not have to worry about the huge repair expenses of your car.
Driving with expired car insurance can cause you trouble with heavy penalties and imprisonment. Renewing your car insurance policy protects you from these violations.
No Claim Bonus stays intact
Renewal of car insurance policy keeps your no-claim bonus intact and you can avail of the benefits by getting discounts on your premiums.
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.