RENEW EXPIRED CAR INSURANCE

Car insurance is one of the most basic things you need to have while driving a car. It is mandated by law to purchase third-party insurance when you purchase a car. But often, the Insurance policy can expire simply because the owner forgot to renew expired car insurance on time. Under such circumstances, if you undergo an accident, then you will have to bear a hefty dent in your wallet.

There are other monetary losses like the lapse of accumulated NCB if you forget about car insurance policy renewal after expiry. Moreover, driving around a motor vehicle without insurance is not legal. To stay away from financial losses and legal hassles, it is best to renew your expired car insurance. 

What happens if you do not renew Expired Car Insurance? 

If you do not renew car insurance for an expired policy, the following are the consequences. 

  1. Zero Compensation for Losses: The one major function that car insurance serves is giving you coverage in the cases of losses. If you opt for third-party insurance, the insurer will give you coverage for damage done to another's property. In the case of a comprehensive car insurance plan, you will get coverage for losses that either party has incurred. But if your policy lapses, you will not get any coverage. In the case of an accident, your pocket will have to bear the big brunt. 
  1. Legal Consequences:  The Motor Vehicle Act, 1988 mandates you to have insurance if you are driving a vehicle on the road. Third-party car insurance is the least you need for this purpose. While driving, if you are caught without insurance, then you will have to pay a fine of one thousand to two thousand.
  1. Lose your No Claim Bonus (NCB): A no-claim bonus is an amount that your insurance company gives you as a discount on your premium because you have not claimed any insurance in a particular policy year. If you forget to do a car insurance policy renewal after expiry, you will lose your claim to this type of bonus. Let's take a look at how the no-claim bonus works: 

Claim Free Years

Percentage of Discount on Premium

1st Year

20%

2nd Year

25%

3rd Year

35%

4th Year

45%

5th Year

50%

 

The no-claim bonus accumulates as each year passes. Remember, even if you switch insurance companies, your accumulated no-claim bonus will still be valid. But if your insurance policy expires, then you will lose the no-claim bonus. 

  1. Longer Renewal Process: If your car insurance policy has expired for quite a number of days, then the insurance company will take way longer to process your file. If you do the renewal on time, it is a much easier process. However, there are indeed certain top-notch insurance companies that swiftly processes car insurance renewal online files even after expiry. 
  1. Inspection Process will happen All over Again: If you are going for third-party insurance, then renewing expired car insurance without inspection will not be much of a big deal. But if you wish to renew your comprehensive car insurance policy after it has expired, you might have to undergo the entire process of inspection of the vehicle. 

How to Renew Expired Car Insurance

Having an expired car insurance policy is nothing new. Many people often make the mistake of forgetting to renew their policy. Hence, the best car insurance companies have kept the option of online car insurance renewal open for you. You can alternatively visit the insurer in person and do the process as well. 

Here's how you can renew your car insurance expired policy online. 

Step1: Select your Car Brand Name, Model, Variant, Fuel Type, Registration Date, and Registration Area. Click ‘Get Quotes Now’ and choose your choice of plan.

Step 2: Now, choose the desired plan.You will have to choose a third-party plan for your car. You can also choose a comprehensive policy for better coverage and more benefits.

Step 3: Fill in the details about the insurance policy you had before. This expired car insurance renewal online step is applicable even if you are applying for a policy with your previous insurance company. Needless to say, you will obviously have to fill in these details in case you are renewing your car insurance with a new insurance company. 

Step 4: You need to do inspection of car as required by insurance company.

Step 5: Once you have completed all the above steps, the exact payable premium amount would be generated on the next page. After seeing the amount, you can add on other coverage benefits if it suits your budget. 

FAQs

Q1: Can I renew my motor vehicle insurance policy before the expiry date? 

Ans: Yes, this is what you must do to stay away from the hassle of an expired policy. It is best to renew the insurance at least before seven days just to be on the safe side. 

Q2: For how long is my no-claim bonus valid if I do not renew my car insurance policy? 

Ans: Your NCB is valid for 90 days after the expiry of your existing policy. If you do not renew the car insurance within this time, you will lose the no-claim bonus. 

Q3: What is the amount of monetary penalty in case of driving with an expired car insurance policy? 

Ans: If you drive without valid car insurance, you will be charged a monetary penalty of INR 1000 to INR 2000. If you are found repeating the offense, then you will be charged a higher amount.  

Q4: Is there are grace period after the lapse of a car insurance policy? 

Ans: Most good companies allow a grace period of 30 days to renew your existing policy after it expires. 

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