Missed renewing your car insurance: Here’s what to do

Car insurance is crucial because it provides financial protection against accidents, theft, loss, and damage to your vehicle. It reduces the burden of hefty repair or medical costs. Motor insurance is also legally mandated. Hence, not having valid insurance or not renewing it within the due date can result in fines, penalties, or legal action.

If you have missed renewing your car insurance, it is crucial to address the situation promptly to avoid legal issues and ensure financial protection for your vehicle and yourself.

What are the consequences of a lapsed car insurance policy?

Legal consequences

As per the Motor Vehicles Act of 1988, all vehicles must have at least third-party motor insurance coverage. Driving without valid motor insurance is illegal in India, leading to hefty fines, legal penalties, and possible vehicle impoundment.

Adverse impact on no claim bonus (NCB)

A lapsed policy might affect your No-Claim Bonus (NCB), which is a discount on premiums for not making any claims during the policy period in all the previous policy years. Hence, it is important to renew within the due date to avail of such benefits.

Vehicle inspection

If the policy lapses, you must also get your vehicle inspection done to get a new or renewed policy. Renewal can involve additional fines and result in increased premiums.

How to renew a lapsed car insurance policy?

Insurer may offer a grace period of a few days after the policy expires, allowing you to renew your policy without losing coverage. The number of days in a grace period may vary between insurance companies. Hence, confirm with your insurer if this option is available to you. Here are some of the simple steps to follow to renew your lapsed car insurance coverage:

Contact Zurich Kotak General Insurance:

Contact us to guide you on renewing your policy, determining any penalties involved, and determining the steps to take if your policy lapses.

Renew your policy:

Renew your lapsed motor insurance policy as soon as possible. If the policy has lapsed for more than 90 days, you may need to get your vehicle inspected and provide additional documentation. Keep important documents like a driver's license, PAN card/Aadhaar card/Registration Certificate/Vehicle Fitness Certificate, and any other relevant documents handy.

Choose your policy:

Use this opportunity to compare different insurance policies and choose based on your needs, especially while opting for additional riders.

Vehicle inspection requirement:

If there has been a significant gap since your policy expired, the insurance company may require a vehicle inspection before issuing a new policy. Schedule an inspection as soon as possible to avoid further delays.

It is important to note that lapsed coverage can lead to higher premiums for motor insurance renewal. Check with your insurance company if your no-claim bonus can be retained or transferred to a new policy. By taking these steps, you can ensure that your car insurance renewal is done promptly, with minimal financial risks.

Conclusion

Renewing your insurance on time prevents coverage gaps, helps maintain your no-claim bonus/discounts, and avoids potential premium increases. Additionally, continuous coverage ensures peace of mind and compliance with the law.