Car insurance is mandatory by law. Driving on Indian roads without an active policy will attract a penalty of Rs. 2000 under the New Motor Vehicle Act of 2019. Therefore, it is imperative to renew car insurance plans on time or else the policy lapses.
But if your car insurance has already expired, here are a few things that you should and should not do.
The following are the things that you should do right away when your car insurance has expired -
In case the car insurance plan has already expired, contact your insurer as soon as possible. Get in touch with an executive who will help you reinstate your insurance policy. You can ask the same person to guide you through the process and help prevent such a scenario in the future.
Know that waiting for a longer time to renew your car insurance plan will only make it difficult for you. You might have to buy a new car insurance plan altogether, which means you will lose all the rewards (such as No Claim Bonus) accumulated on your existing plan.
Moreover, if you drive an old car, you might have to pay higher premiums on the new car insurance plan along with charges for unnecessary delay.
As mentioned earlier, driving a motor vehicle without a valid car insurance plan means violating the traffic law. If caught by a traffic police officer, you will have to pay hefty penalties under the New MV Act, 2019.
Furthermore, if you get into an accident when driving the vehicle with valid insurance, you will incur a huge loss. The damage repair expenses will have to be paid from your pocket, which can put a dent on your finances.
Many insurers provide a grace period within which you have to renew the policy. Failing to do so will result in policy lapse. When that happens, you will have to either pay the penalty to reinstate your existing policy or buy a new car insurance plan.
If you are looking to buy a new policy, it is wise to research and evaluate different car insurance plans available in the market. Based on your affordability and preferences, you can then proceed with the best options accessible to you.
You must avoid doing the following things if your car insurance is expired
Driving your car with an inactive car insurance plan will invite unwanted trouble when caught by a traffic police officer. So, make sure you are driving your motor vehicle with an active insurance plan.
In case you and your vehicle are involved in a road mishap causing damage to third-party property or person, the damage repair expenses will have to be paid from your pocket. Also, you have to bear the costs of damage incurred by your vehicle.
Suppose you are unable to renew your car insurance plan before the due date and specified grace period, the policy will lapse. It further results in losing out on the No Claim Bonus benefit earned over the years (if any). So, avoid waiting for your policy to lapse and renew it immediately.
The reasons to renew your car insurance policy after expiration are as follows -
Unfortunate life situations can happen at any time. Your vehicle can incur damage due to an accident or any natural calamity. Having no car insurance coverage would mean taking care of the expenses from your pocket. Moreover, if your car is stolen, you will have to face a significant loss.
All this can be avoided by simply renewing your car insurance plan on time.
The longer you wait to renew your car insurance plan, the more difficult it gets to find a policy in the future. If you drive an old car, you have to get it inspected again and bear the charges of the same. Having to do all this seems a bit too time-consuming and expensive, something that could be easily avoided if you renew your existing policy.
If you fail to renew your policy within 90 days, you will lose the No Claim Bonus (NCB) accrued so far. Imagine, you have accumulated up to four years of NCB that is up to 40-50 percent. You will lose this percentage in no time if you fail to renew your car insurance plan in the stipulated time.
Here are the steps to renew car insurance policy online.
It is not a wise decision to drive a car around the town with an expired car insurance policy. Renew car insurance as soon as it expires or at least before the expiration. It will ensure that your car is covered at all times.
If you are looking for extensive coverage, consider buying car insurance at Finserv MARKETS. You can benefit from features such as hassle-free renewals, cashless claim settlements, car roadside assistance, and more.
Having an active car insurance plan will ensure that you are financially protected in case of liabilities and unforeseen accidents. Also, driving an expired car insurance plan will attract hefty penalties under the New MV Act.
Yes. You can renew your car insurance plans at Finserv MARKETS online. Just follow these steps -
If the car insurance plan has expired for more than 90 days, you will lose the NCB benefit. So, to transfer the accumulated NCB, do it within the 90 days of your expired policy.