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What to do once your Car Insurance Policy lapses?

With the number of things that are running in our heads, it is quite difficult for us to remember some important dates. When we forget someone’s birthday or anniversary, a belated wish or gesture may help us get away with it. But, there are other important dates that would cost you a little more than a gift or a gesture if missed - such as your credit card due date, mobile phone bills, and most importantly the renewal dates of your insurance policies.

With your credit card or a mobile phone bill, you can continue to avail of your services by paying an extra fee or a fine. But, that’s not the case with your insurance policy. The implications of missing the payment or renewal date are much more serious. Listed below are some of the key consequences of a lapsed car insurance policy:

Consequences of Lapsed Policy:

A lapsed car insurance policy can be a slightly time-consuming process and can cost you very dearly. Let us take a look at the implications of the lapsed policy:

● Driving on Indian public roads without a valid insurance policy is illegal and could lead to hefty fines up to Rs. 2000 or getting your license suspended.

● One of the best parts of an insurance policy is the no-claim bonus. However, if you do not renew within 90 days of the lapsed policy, you could lose all your earned bonus.

● With no insurance in place, you are more vulnerable to financial loss, in case of an accident. You will have to pay for all the damages or losses by yourself.

What to do once your car insurance policy lapses?

The first thing to do if you have any problem or grievance regarding your insurance is to get in touch with your insurance provider. In cases of a lapsed policy, they will assess the time period and let you know if the policy can be reinstated. Also, sometimes they will let you renew your policy with a fair warning, without any consequences. But, if your policy can’t be reinstated, you could buy a new one with the following steps. A lapsed policy can also be a boon if you don’t have a no-claim bonus for it will allow you to choose a new insurance provider too.

1. Choose Wisely: Choose a policy that you think will suit the requirements the best. Now that your policy has expired, you could change your insurance provider and choose policies from any insurers. A comprehensive policy offers more coverage while getting a third-party policy is easier because you don’t have to get your car inspected.

2. Grab your Benefits: If your lapsed period has not exceeded the 90-day period, you will still have your no-claim bonus (NCB) intact. You can either get a discount on the next premium or get your credit transferred to your new insurance provider.

3. Accessorise Well: During your insurance period, if you have had any complaints with the coverage of your policy, you could always opt for add-ons you require.

4. Car Inspection: In case you opt for a new policy provider or a comprehensive policy, the insurer will inspect your car and take a few pictures. The condition of your car could make or break the deal. In case of severe damage, they can reject your application for insurance. If there is no severe damage, the damaged parts will be left out and not covered in the policy.

5. Get your Policy: After the inspection, if your policy gets approved, you can get your policy within 24 hours. Make the payment and ensure you get a copy of your document.

While renewing a lapsed car insurance policy has been made easier, it is better to set a reminder for your due date and get your policy renewed on time to avoid such hassles.

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