If you own a car then you must know that as per the Motor Vehicle Act 1988 it is mandatory for a car owner to have a car insurance policy. The policy provides cover against the third-party liabilities and the car owner as well. These insurance policies provide cover for a set tenure that can be of one year as well as multi-year. But once the insurance policy tenure ends, the policyholder will not get any kind of claim in case of an unforeseen accident that caused damage and loss to the third party or oneself.
If the policyholder does not renew the insurance policy then the insurance provider lapses it. Then you will have to pay for the damage repair or replacement out of pocket. But renewing your policy on time can provide you no claim bonus and several other benefits. So, if you have a car and you forgot to renew the policy before expiry date, you will have to purchase a new insurance policy. But, don’t worry, here we will be telling you about the things that are important for you to know when you fail to renew the policy.
As mentioned above that the car owner must have an insurance policy to legally drive on the road. In case you forget to renew the insurance policy on time and roam around with an expired insurance policy, then when caught by the traffic police you might have to pay a hefty fine or go to jail. This can turn out to be a problem for you that you will have to face.
For instance, you are driving on the road and traffic police spot you because you are not wearing your seatbelt. Now the traffic police will follow its procedure and ask for your driving license, RC as well as insurance policy. If they notice that your insurance policy is expired then they will fine you for it as well as for not wearing your seatbelt.
Loss Of Coverage Leads To Financial Loss
Once your insurance policy expires, you are not eligible to raise a claim. So if you meet an unforeseen accident in which you damage a third-party vehicle as well as yours then for not having an active insurance policy you will have to pay for their as well as your repair or replacement expenses out of your pocket and the amount can be pretty huge. Also, it is compulsory for the car owner to have at least third-party car insurance and then only he/she can purchase comprehensive car insurance that could provide all-over coverage.
Lose No-Claim Bonus
No claim bonus is a kind of discount that the insurance company provides the policyholder for not raising any claim in a year. To avail the benefits of no claim bonus, the policyholder has to renew the policy on time otherwise you will have to purchase the policy once again and due to discontinuation of policy, you won’t be able to avail of no claim bonus.
In no claim bonus, the policyholder can avail a discount ranging from 20% to 50% for not raising a claim from one year to 5 years. Every year the percentage of discount increase by 5%.
How To Renew An Expired Insurance Policy?
Once your car insurance policy expires and you want the same insurance policy then you will have to pay an increased amount of premium. And here are the steps that you can follow to renew the expired insurance policy.
- Contact your insurance policy provider once you realize that the policy has expired.
- You can choose a different insurance plan if you want at the time of renewing the expired policy.
- You can also choose extra features and riders to enhance the insurance cover while renewing the policy.
- Once the insurance policy is expired, the insurance provider will come and inspect your car’s condition in order to renew the expired insurance policy.
- Once the insurance provider inspects the car then you can purchase the policy.
Documents Required For Renewing Expired Insurance
When you visit the insurance company to get your expired insurance policy renewed. You will have to carry a copy of your expired insurance policy, registration certificate (RC), Car detail like model, city and date of registration as well as provide the RTO address that registered your car.
A car insurance policy is an important thing that can provide you financial aid at the time of any unforeseen incident that caused damage to your car as well as you. There are many insurance plans available online and insurance experts advise to purchase the car insurance plan online because you can compare different plan, calculate the premium using premium calculator, add-on new features as well as renew the policy sitting at the comfort of your home.