We all know that vehicle insurance is a mandatory requirement by the law. That makes it a part of some other compliances regarding your car, like registration and PUC. However, buying an insurance policy at once isn’t enough. It would help if you kept on renewing it consistently year over year. This is to ensure continued coverage is available, both for legal and safety purposes.
However, you might sometimes miss a renewal date in your busy work life. This article discusses why you should avoid missing a renewal date to your car insurance policy.
What happens in the event your policy expires?
If you happened to miss your car insurance renewal, here are some of the consequences –
- First, the policy coverage ends once the due date has passed. You are no longer legally allowed to drive without a valid insurance copy. In addition, you may be required to pay hefty fines for violation of the law if inspected by traffic officials.
- Any accumulated no-claim bonus also expires post 90 days after the due date. Thus, you end up losing all the benefits that a no-claim bonus might help you save in your premium.
- You will be required to obtain a new car insurance policy to get your car inspected all over again.
- In an unfortunate accident or damage when no coverage is active, all the losses, be it third-party or even to your car, must be borne by you.
How to renew car insurance?
A couple of years ago, the renewal process was limited by offline renewals. But now, the same is possible online too. Renewal of car insurance online is a simple process. Be it a comprehensive policy that you should get or a basic third-party coverage, and it can be decided based on your requirements. It helps save time and aids in comparison, thereby helping you select one out of the plethora of alternatives.
For online insurance renewal, you need to start with knowing what your requirements are. This needs to be followed by finding a suitable insurance company that offers different policies. This selection process can be simplified using a car insurance calculator that helps choose a policy. Next, you need to select the right policy that checks all the right boxes. Once you have shortlisted a policy, make sure to thoroughly read the terms and conditions only after you need to finalize it. Here, in the case of comprehensive policies, you can also purchase add-ons that can be used to customize the coverage. Once completed, make the payment and receive the policy immediately in your inbox.
To conclude, avoid missing the insurance renewal as you lose on features like the no-claim bonus and other renewal benefits. Further, a missed policy date results in a lapse in coverage, thereby exposing your car to perils. Thus, it is advisable to abide by the timely reminders sent by your insurer and renew the policy well in advance to enjoy continued coverage. 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.