Thinking of renewing your expired car insurance policy? Here’s how

Note that you will need to buy the new car insurance policy as soon as the inspection is done because the inspection is not valid for a longer duration.

It is compulsory to have at least third party motor insurance as per the Motor Vehicle Act, India. Usually auto insurance policies provide coverage up to a specific time limit, similar to other insurance plans. When the term of the policy ends, the insurance plan no longer covers damages or expenses, and the policyholder can only file a claim after the policy is renewed.

Rakesh Goyal, Director of Probus Insurance, says: “If a person is found driving on the roads without a valid car insurance policy, they may face financial and legal issues. Therefore, if your policy expires, you will be left without insurance. For example, if you encounter an unfortunate situation like an accident after the policy term expires, there will be no help from the insurer.

Usually, the insurance policy lapses if it is not renewed before the due date by the policyholder. If a policyholder does not renew the policy on time and an accident or damage occurs after that, the policyholder must bear the full costs himself. After policy renewal, the insured can obtain coverage and benefits again.

Goyal of Probus Insurance says, “The best advantage of renewing the policy on time is that the insured can avail the No Claims Bonus (NCB) and other benefits as per the plan.” He adds: “Someone whose policy expired more than 3 months ago could lose NCB benefits. Such a situation could be a considerable loss for a careful driver/individual who has not claimed for the past few years.

Moreover, according to the norms of Indian Automobile Laws, driving a car without a valid auto insurance policy is a punishable offence, in which strict actions and fines are also imposed on the driver in such a case. Therefore, it is always suggested to consider renewing the auto insurance policy in time to avoid any financial and legal issues.

Here’s what you should do after your car insurance policy expires:

Once an auto insurance policy expires, the first thing to do is notify the insurer from whom the insurance plan was purchased. Experts say that as soon as the policyholder receives an update on the expiration of the auto insurance policy, this should be done on a priority basis.

Once the insurance company is notified, an appointment would be set for your vehicle to be appraised if your policy has expired. The expert inspects the car and sees if there is any pre-existing damage. Goyal says, “Chances are that the insurer will set a fixed deductible on damages and that will be charged to the insured on subsequent claims. After the inspection process, the policyholder can also opt for a new car insurance policy. Note that you will need to buy the new car insurance policy as soon as the inspection is done because the inspection is not valid for a longer duration.

That said, the renewal period is when you can also switch insurers if you are unhappy with the current insurer. If you are considering switching insurers, look for an insurer that offers better service and improved coverage on the vehicle. As a policyholder, you can also opt for additional benefits or features in your car insurance plan during the renewal process. Therefore, compare quotes online and find the insurer who can offer better insurance plans at relatively low premium rates.

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