Car insurance is essential for every vehicle owner in India. It provides financial protection against unforeseen incidents like accidents, theft, or natural disasters.
It is also a legal requirement to have at least third-party car insurance. However, many vehicle owners tend to overlook the importance of renewing their car insurance policies in a timely manner. This can lead to several complications, including financial losses and legal penalties.
In this blog, we will discuss how you can renew the expired vehicle policy online, the steps involved, and why it’s crucial to keep your insurance policy active.
Why Renewing Car Insurance on Time is Essential?
Renewing your car insurance before its expiry date is critical to ensuring continuous protection. Once your car insurance expires, the insurance company’s promise to cover any damages or losses also ends. That means if an accident or any other mishap occurs after the policy has expired, you won’t be able to raise a claim. Moreover, driving without valid car insurance is a punishable offence in India, attracting fines and even imprisonment.
Here are the main reasons why renewing your car insurance on time is essential:
- Legal Requirement: In India, driving without at least third-party car insurance is illegal. If caught, you could face a fine of Rs. 2,000 and/or imprisonment of up to three months.
- Financial Protection: Without an active policy, you will be responsible for covering any damages or losses out of your pocket in case of an accident or theft.
- No Claim Bonus (NCB): Timely car insurance renewal helps you retain the No Claim Bonus, which can significantly reduce your premium.
Categories of Expired Car Insurance Policies
To understand how to renew an expired car insurance policy, understand three categories.
Car Insurance Renewal Within the Grace Period
Most insurance companies offer a grace period, typically ranging from 30 to 90 days after the policy expires. It’s important to note that the car is not insured during this grace period. However, renewing within this time frame allows you to avoid penalties like increased premiums and the loss of the No Claim Bonus. Remember, driving your car during this grace period without active insurance is still illegal.
Car Insurance Renewal After 90 Days of Expiry
If you don’t renew your policy within 90 days after it expires, you may face more severe consequences. This could include a mandatory vehicle inspection, loss of accumulated No Claim Bonus, and a significant increase in your premium. Additionally, driving an uninsured vehicle after this period can result in fines, legal consequences, and increased financial risk in case of an accident.
Break-in Period Renewal
The break-in period refers to the 90-day grace period after the policy expires. If you renew your insurance during this time, an inspection of your vehicle is mandatory. This inspection helps the insurance company assess the current condition of the car and any pre-existing damages. The No Claim Bonus remains intact if you renew within this period, but the premium may still increase based on the car’s condition.
Consequences of Expired Car Insurance
Allowing your car insurance to expire can lead to several negative consequences:
- Legal Issues: As mentioned earlier, driving without insurance is illegal in India and can lead to fines and imprisonment.
- Financial Liability: Without an active policy, you will be fully responsible for any damages, injuries, or losses resulting from an accident.
- Loss of No Claim Bonus: If you don’t renew your policy on time, you could lose the No Claim Bonus, which can save you up to 50% on your premium.
How to Renew an Expired Car Insurance Policy Online?
Renewing your expired car insurance policy online is a straightforward process. Here’s a step-by-step guide to help you through it:
- If your policy has lapsed, you need to start afresh by selecting a car insurance policy that meets your requirements. Some insurance companies may allow you to renew during the grace period, but it’s important to act quickly to avoid higher premiums due to the loss of the No Claim Bonus.
- After your policy has expired, the insurance company will require an inspection of your vehicle. This inspection is necessary to evaluate the car’s current condition and assess any pre-existing damages. The premium for your renewed policy will be determined based on the results of this inspection.
- Keep all relevant documents handy when renewing your policy online. This includes your previous policy documents, car registration details, engine capacity, driving license, and any additional information related to add-on benefits.
- Login to your account on the insurance company’s website. If you don’t have an account, you can easily create one using your policy details.
- Once logged in, find the option to renew your car insurance policy. Select this option and follow the prompts to proceed.
- You can pay the renewal premium online using a credit/debit card, net banking, or other available payment methods.
- After completing the payment, you will receive a digital copy of your renewed insurance policy via email. The insurance company will also dispatch a hard copy to your registered address.
Advantages of Timely Car Insurance Renewal
- Continuous Coverage
- Retention of No Claim Bonus
- Legal Compliance
Final Thoughts
Renewing your car insurance on time is crucial for maintaining continuous protection and avoiding legal and financial consequences. If your policy has expired, don’t panic—you can still renew it online by following the above steps.