Car Insurance – What Should You Do After Your Car Insurance Policy Expires?


After an auto insurance policy expires, the first thing the insured must do is notify the insurance company. Experts say informing the insurer should be done as a matter of priority, as soon as the policyholder receives an update on the expiration of the auto insurance policy.

In India, it is compulsory to have at least third party motor insurance as per the Motor Vehicle Act. Similar to other insurance plans, with auto insurance policies, policyholders get coverage up to a specific time limit, which expires at the end of the policy term. Then the insurer must renew the plan to continue getting coverage for any damage or expense to the car.

Experts say individuals, if found driving on the roads without a valid auto insurance policy, could face financial and legal problems. Therefore, an insured is not insured against various risks if the policy is not renewed on time.

After an auto insurance policy expires, the first thing the insured must do is notify the insurance company. Experts say informing the insurer should be done as a matter of priority, as soon as the policyholder receives an update on the expiration of the auto insurance policy.

Generally, after informing the insurance company, an appointment is made for the expertise of the insured vehicle. The adjuster sent by the insurance company inspects the vehicle and sees if there is any pre-existing damage, before approving the renewal. Industry experts say that in the event of damage, the insurer is likely to set a fixed deductible on the damage and the insured will be charged in subsequent claims.

Moreover, the policyholder can also opt for a new car insurance policy, after the inspection process. The renewal period is the time when one can change insurers if the insured is not satisfied with the current insurer. Keep in mind that the inspection is not valid for a longer duration, therefore, you will have to purchase the new car insurance policy as soon as the inspection is completed. Experts say that if one is really considering changing insurers, one should look for insurers that offer better service and improved coverage on the vehicle. Policyholders can also opt for additional benefits or features in their auto insurance plan during the renewal process.

Note that if the renewal is not done before the due date, the insurers terminate the insurance plans. Also, if there is an accident or damage that occurs after the due date and the policyholder has not renewed the policy, the insurer is not required to bear the costs.

According to industry experts, renewing the policy on time benefits the insured with features like No Claims Premium (NCB) and other benefits depending on the plan. If a policy remains expired for 90 days (3 months), the policyholder may lose NCB benefits.

Therefore, it is always suggested by the experts to consider renewing the auto insurance policy in time to be safer and avoid any financial and legal issues.

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