Car insurance is a shield that protects you from any sudden impact on your savings as a result of loss or damage to your car. It is a protection for your car against liability arising from its usage, like collision, or due to high traffic. For your safety as well as that of others, you need to have valid car insurance in force, if you wish to drive your vehicle on the roads. Renew car insurance before expiry to keep your car covered at all times.
There are five different types of coverages that you can choose from depending on your need:
- Liability coverage
- Collision coverage,
- Personal injury coverage,
- Uninsured motorist protection
- Comprehensive coverage
(Note: This is the most popular choice, which covers your car against all possible risks associated with the driver, vehicle, as well as third-party drivers and vehicles.)
Consequences of lapsed car insurance
There can be serious consequences of lapsed car insurance, some of which are:
- The insurance company may not entertain car insurance renewal requests if the lapsed time is high, and even if it is accepted after the grace period, you may be charged a hefty sum as a fine.
- You may have to shell out a higher premium amount than what you could have paid if paid on time.
- Driving around, without having a valid insurance policy, is legally forbidden. Hence, you may even land into trouble with lapsed insurance.
- You may have to forgo your No-claim Bonus, which is a discount given due to all the ‘No-claim’ years. It increases with every year of no-claims received. You can either avail it at the time of insurance renewal or transfer it to the new insurer in case you wish to switch. However, this benefit can be claimed only when the insurance policy is renewed on time.
- You may have to initiate a new policy with exhaustive procedures and a higher premium.
- If any untoward incident, like accident, theft, or damage occurs, the consequent financial liability will solely be yours. You are not liable to receive any kind of car for the damage so caused, and you are left stranded to manage on your own without any financial assistance.
However, it’s not the end of the road if the car insurance has expired. You still can have it reinstated. Consider the following pointers when your car insurance is expired:
1. Get in touch with your insurance provider immediately.
2. Do not take out your car, until you get a new policy in force. This is of paramount importance, as driving on roads with a lapsed insurance is a punishable offence and attracts heavy penalties.
3. Choose an insurance policy as per your requirement and arrange for a vehicle inspection on priority.
4. Arrange all your documents like a copy of RC and previous insurance policy and keep them ready.
Things to Avoid while Buying Car Insurance
Once you are confronted with such a situation, where your car insurance has expired, and you have to renew it, there are still ways and means to save yourself from paying a hefty premium.
- Have a safe driving history, and you will be the favorite insured of your insurer. You will be offered benefits in terms of discounts.
- Staying loyal to one insurance company will also earn you discount points on renewal.
- Though it is a good idea to stick to your present insurers, while renewing an expired car insurance policy, check out all the available options for competitive rates and better terms. You can check online with all the available tools today.
- If you are an experienced driver, you are most likely to get the best rates for your insurance policy.
Renewing Car Insurance
Most people already prefer to buy car insurance online, but there is a certain population that still continues to buy motor insurance offline. Here are the pros and cons of buying car insurance online as well as offline:
- Ease of accessibility- You can access the website of your car insurer anytime, without having to visit their office. All required information is available at your fingertips.
- Ease of Comparison– There are numerous customizable options available online, which you can tweak as per your requirement. The easy access makes comparison easy. Moreover, there are various comparison tools available online, which empower you to make an informed choice.
- Ease of Paperwork: This is one of the prime advantages of opting for an online renewal as it cuts down a lot of paperwork. The documentation is hassle-free, and you can make the payment online from the comfort of your home or workplace. Subsequently, the policy will be available for download as well.
- Ease of Process- The seamless online process ensures that your policy renewal is done well in time, and continuity is maintained. The process itself ensures transparency, as you are interacting directly with the insurance company, obviating the need of any middlemen/agents.
- Ease of Purchase– Being able to compare the various policies available online, and study the numbers therein, certainly empowers you with the data that is crucial to make an informed choice. For eg: the claims’ settlement ratio will put the spotlight on the best insurers.
- Discount: Many companies offer an online exclusive discount.
To conclude, car insurance should not be allowed to lapse. You must have adequate reminders in place to ensure that your car never ventures out on the roads without valid insurance. The effort required to keep the insurance live and valid is minimal when you compare it with the inconvenience caused by the lack of it. Enough enablers to ensure we are not left stranded in case of emergency, without any financial assistance, surround us. This forms the basis for you to select a good insurance company, as well as a smart insurer, who will keep reaching out to you at the end of your policy term for your renewal to ensure you renew your policy on time and save you from the perils of a lapsed policy.
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