How To Renew Expired Car Insurance?

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.

To Dos in case of Car Insurance Expiry

The following are the things that you should do right away when your car insurance has expired -

1. Contact Your Insurer Immediately

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.

2. Avoid Driving Your Vehicle

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.

3. Renew/Buy a Car Insurance Plan

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.

Don’ts in case of Car Insurance Expiry

You must avoid doing the following things if your car insurance is expired 

  • Drive your Vehicle with an Inactive Car Insurance Plan

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.

  • Get Involved in an Accident or Third-Party Liabilities

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.

  • Wait for your Policy to Lapse

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.

Reasons to Renew Your Expired Car Insurance

The reasons to renew your car insurance policy after expiration are as follows -

  • Protection for Your Vehicle

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.

  • Inconvenience in Renewing the Policy

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.

  • No Claim Bonus

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.

Steps to Renew Your Expired Car Insurance Plan

  1. Evaluate different car insurance policies before buying a new one.
  2. After you finalise on one, schedule for the vehicle survey with the insurer. Get this done as soon as possible.
  3. A representative from the insurer will inspect, review, and ascertain existing damage of your vehicle. Based on the evaluation, the insurer will approve/reject your car insurance application.
  4. If the application is approved, proceed to buy the policy immediately as the inspection is valid for 24 hours only.

Here are the steps to renew car insurance policy online.

Conclusion

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.

FAQS Related Expired Car Insurance Renewal Online

  • ✔️Why should I renew my expired car insurance plan?

    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.

  • ✔️Can I renew my car insurance online?

    Yes. You can renew your car insurance plans at Finserv MARKETS online. Just follow these steps -

    1. Visit Finserv MARKETS online
    2. Enter your registration and contact information
    3. Check the renewal premium amount
    4. Make the payment online
    5. Download the insurance copy
  • ✔️Can I transfer the No Claim Bonus from the expired car insurance plan?

    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.

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