Car insurance is mandatory by law. Driving around without one is therefore illegal! There may be many reasons why a policy has lapsed and wasn’t renewed before its expiry date - because the policy holder forgot the date altogether or it could be other personal causes that have delayed the renewal.
When this happens, the biggest disadvantage of your policy expiring is that you can lose out on your NCB (No Claim Bonus). This is one of the benefits, where for every claim-free year you will receive a discount on the next year’s premium. Now you tell me who doesn’t enjoy discounts?! These discounts start at a lower rate and increase with every passing claim-free year. Not renewing your policy on time could lead to you missing out on this little bit of savings.
Some steps to renew your policy are as follows
Contact your Insurer/Agent
The first step would be to get in touch with your agent/insurer at the earliest. Your insurer has the knowledge and the expertise to reinstate your car insurance without much hassle and penalty. However, the time matters so do not wait for a longer time, it may get a lot harder and you might also end up paying higher premiums.
Avoid Driving your Car
Driving around would mean more risk for you. The risks can involve accidents or even legal issues as driving without insurance is punishable by law. Any accident that occurs during this time, you will have to pay out-of-pocket for the damages incurred for your own car, as well as to any third party involved and this is something you wouldn’t want!
Choose your Policy
The next step would be to choose a policy that suits your needs. An excellent option for this is to do a little research to know what is available in the market and make an informed decision. Make sure reliability is the top priority before zeroing your decision.
Keep Documents Handy
After the decision is made, the next step is to know all the required documents and keep them handy. It is best to keep in touch with your insurer to make sure you have everything ready for the renewal process.
Vehicle Survey Process
With your policy expired, your vehicle will have to go through a survey process. This is where a surveyor will cross-examine for any pre-existing damages and review the car condition before giving approval for your insurance. This is am important step since the surveyor might set a predetermined fixed deductible according to the extent of the damage to the vehicle which will also determine the eligibility of insurance.
Buy the Policy Immediately
Once the inspection is done, it’s valid only for only a specific amount of time so make sure there are no more delays from your side and that the new policy is bought immediately. Buying them online is an ideal option since the process is much faster.
Be Careful in the Future
Make sure you set reminders and be more mindful about the renewal dates so that you don’t miss out on the premiums to avoid a policy lapse.
Owning a car is not just about driving around independently but it also teaches you to be responsible and make informed decisions on how you protect your car as well as your fellow drivers on the road!
Cheers to a safer, better, and more enjoyable Life On Wheels!