A vehicle insurance policy does not last forever. It has an expiration date. The majority of policies are valid for one year. The Insurance Regulatory and Development Authority of India is continually adopting new guidelines regarding policies that may have a shorter or longer duration than one year. But even these have an expiration date.
A policy that has expired terminates the contract. So, renew motor insurance coverage must be renewed to remain in effect. Want to know why timely auto insurance renewal is crucial? Keep reading.
Significance of Timely Automobile Insurance Renewal
These are essential considerations while renewing vehicle insurance. They will emphasise why it is crucial to renew auto insurance before expiration.
1) Renewal of auto insurance is Required
Auto insurance is often emphasised as mandatory. First-time car buyers must buy auto insurance. The auto insurance must also be renewed. More than one policy purchase is needed. This limited-duration plan must be renewed to maintain coverage. Renew and maintain insurance coverage.
2) Non-renewal is a matter of law
Driving without four-wheeler insurance is worse legally than driving with an expired policy. Police will verify if you “have” a policy, not if you “had” one. Policy validity avoids litigation.
3) Renew Immediately and do not repeat the Infraction
Renewing the Plan weeks before expiration is best. If a police officer discovers you are driving without insurance, you must pay the charge. Renewing the policy quickly would help. A second offence will result in a more significant punishment and a vast bank account drain.
4) Non-renewal may result in financial obligation
If your car injures others, not renewing your auto insurance’s Third-Party Liability could be problematic. The insurer won’t pay because the coverage has yet to be renewed. It would help if you managed third-party liabilities.
5) Renewal denial may result in a monetary outflow
If the car needs repairs, not renewing the Own Damage section of the Comprehensive Plan four-wheeler insurance coverage may cost money. As the car’s insurance has expired, you will be responsible for paying the garage fee without assistance from the insurance company.
6) No protection during the grace period
Car insurers give policyholders a grace period to renew their policies. It does not extend coverage. It just says the policy can be renewed without a premium rise. If your vehicle is damaged within the grace period and you file a claim, as per the motor insurance claim process, the insurer will deny it because the policy has expired and is void. *
7) Non-renewal may result in vehicle inspection
After a few weeks, the car insurance may inspect the vehicle before renewing the policy. To assess the vehicle’s condition and record pre-existing damage. If such an examination requires a few days to repair, your vehicle will stay uninsured. Vehicle inspections may raise premiums. *
8) Non-renewal could cause NCB to reset
The NCB reset means the policy’s No-Claim Bonus can be decreased to zero. If no claims have been lodged for five years, this renewal reduction may approach 50%. The NCB may be reset if the Comprehensive Plan is not renewed within 90 days after expiration. *
9) Non-renewal may result in a higher premium
One of the most significant issues asked during auto insurance renewal is whether or not the coverage has expired. Generally, the premium for an expired policy will be higher than the premium for a valid one. *
10) Non-renewal Is trouble
Whether it’s paying a fine for driving without insurance, managing third-party liabilities, or taking a damaged car to a garage and paying for repairs, these procedures are annoying. They take time, energy, and money. Auto insurance cancellation will cause such issues.
* Standard T&C Apply
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘