Can You Renew Car Insurance Policy After Its Expiry?
Updated On Oct 15, 2023
As an uninsured vehicle could place you at financial risk if it is involved in a mishap/accident, a lapse in your car insurance policy is better avoided. Third-party car insurance is required by the Motor Vehicles Act, 1988, and its 2019 amendment imposes a severe penalty on owners of uninsured cars.
Car insurance plans have coverage over a fixed amount of time, which is normally 1 year, although you can still apply for a multi-year package. The insurance only provides for claims arising during this time and you cannot make a claim once the policy term is ended and till you renew the insurance policy. If the car insurance is not renewed before the insurance renewal period, the policy would expire. It implies that may have to pay any damage or unintended maintenance costs from your wallet. And if you do not renew within time, the No-claim-bonus (NCB) and other bonuses cannot be claimed and becomes zero.
Renewal of Expired/Lapsed Car Insurance Policy
However, you will have to resume all over again if you forget to renew it before the expiration date. In such a case, it would be like taking a new car insurance policy. If your car insurance policy expires, the steps you should take are given below:
- Once you realise your car insurance has expired/lapsed, call your car insurance company.
- You may select another car insurance provider for increased coverage at the time of renewal of the current policy according to your criteria.
- At the time of renewal, you can opt for extra features and benefits in your car insurance plan.
- When the insurance expires, the insurer would make an appointment to have your car inspected again.
- When the vehicle inspection is finished, a new car insurance plan may be purchased
Documents Needed When Renewing Expired/Lapsed Car Insurance Policy
- Ensure you keep these papers ready when renewing a lapsed/expired car insurance policy to guarantee a hassle-free purchase. Some of the essential documents which you must keep available are listed below:
- Registration Certificate (RC) of your car
- A copy of the policy of expired/lapsed car insurance
- RTO address associated with the vehicle being insured
- Car particulars, including the model number of the car, dates, and city of registration, name of the insurer, etc.
Tips to Reduce Premium Costs at the Time of Renewal of an Expired Car Insurance Policy
When renewing an expired/lapsed car insurance contract, the premium is not the only thing to consider. To purchase an insurance policy for your vehicle at an economic price, read on to the guidelines below which will help lower the cost for car insurance:
- Applicants with a safe driving record in the past are expected to receive a discount on the premium from their car insurance provider.
- To receive any discounts, purchasing car insurance from the same general insurance provider can benefit.
- However, when renewing a lapsed/expired car insurance policy, do not only look at your current insurance provider. Also compare and check other insurance companies if they are providing you better premium rates, discounts, or any other added benefits at reasonable costs. Often compare online different car insurance policies and evaluate the details.
- Often, seasoned drivers are expected to receive a better car insurance rate from their insurers.
Timely renewal of your car insurance policy can save you from several potential problems. Thus, aim to renew the policy before it expires to take advantage of the current discounts. , If your insurance has expired/lapsed already, do not panic, just ensure that the next time you do not commit the same fault and spare yourself from any legal or financial setbacks should your car cause an emergency such as an accident, a collision, or third-party injury.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.