While most insurance companies do not charge a penalty during the grace period, some insurance companies may charge anywhere from 8% to 35% extra during renewals.
If your insurance policy has lapsed beyond its grace period, you will have no option other than to buy a new insurance policy.
If your car insurance is not renewed on time, your policy will lapse, meaning your car will no longer be covered by insurance and you will have to pay for any damages out of your own pocket. If the traffic police catch you driving without car insurance, you may even be fined.
As per the updated Motor Vehicles Act, 2019, the fine for driving without insurance is Rs 2000 and/or imprisonment up to 3 months.
Yes, most insurance companies have moved their businesses online, so renewing an insurance policy online is a simple and quick process.