Four-Wheeler Break-in Insurance Policy

Four-Wheeler Break-in Insurance Policy

Why an Expired Car Insurance Policy can be Troublesome?

As per the Motor Vehicle Act, it is mandatory to have a minimum of third-party vehicle insurance in India. If you continue to drive your vehicle without getting its car insurance renewed then it can be a problem both legally and financially. In case of an accident or any collision if it is found that you were driving a vehicle with an expired car insurance policy, then it will be considered a punishable offense. Moreover, it increases the chances of financial losses if there is an accident or any other road emergency. For any loss or damage, you will have to pay on your own. Other disadvantages of an expired car insurance policy are as follows:

  • Legal violation – As mentioned above, it is legally mandatory to have a valid motor insurance policy for all the vehicles plying on the roads. In case you forget to renew your car insurance policy before its expiry date then your car insurance cover also becomes invalid. And you might have to face legal consequences if it is caught with an invalid car insurance policy.
  • Loss of coverage – Once your car insurance policy expires, your policy coverage benefits also stop, which can lead to huge financial troubles in case of an accident or a third-party liability, as the insurance company will not pay for any of the losses or damages.
  • You Lose No-claim-Bonus – No-claim-bonus is the discount given by the motor insurance provider to the policyholder for all the claim-free years. The policyholder can avail of it at the time of car insurance renewal and it is transferable while switching the insurer. To avail of the NCB, it is important that the insurance policy for cars is renewed timely and it is only valid on a comprehensive car insurance policy. Almost every car insurance policy offers No-claim-discount for not filing a claim during the policy term, and it can range from 5% to 50%. You can avail of this at the time of policy renewal and if you miss renewing it before the expiry date then you will lose your NCB, which increases with the number of claim-free years.
  • Higher Car Insurance Premiums – If you renew your car insurance policy that has expired, you will have to pay a higher premium. Once the policy is lapsed and is not renewed within the stipulated time, you lose the no-claim-bonus that you have earned for not filing a claim and you also lose other discounts that may apply to continue the policy that has now lapsed. Both these factors result in higher premiums. Thus, it may not work in your favor to miss the policy renewal either by mistake or deliberately as it will mean shelling out extra premium at the time of renewing it fresh.

Keep these Papers Handy When Dealing with an Expired Car Insurance Policy

While renewing an expired car insurance policy, make sure that you keep these documents handy to ensure a hassle-free purchase. Mentioned below are some of the important documents that you should keep accessible:

  • Vehicle Registration Certificate (RC)
  • A copy of the expired car insurance policy
  • RTO address associated with the insured car
  • Car details including car model number, city, and date of registration, insurer name, etc.

In a Nutshell, as you can see, timely renewal of a car insurance policy can save you from a lot of hassles in the future. Therefore, try and renew your policy before it gets lapsed to avail of the available discounts. If your policy has lapsed once, do not worry, just make sure that you do not repeat the same mistake the next time and save yourself from any legal or financial setbacks should there be an emergency like a collision, accident, or third-party injuries from your vehicle.

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