If you are driving your car with an expired insurance policy, you can be penalised heavily against traffic law violations, and you are at a huge financial risk arising out of an unfortunate accident. In India, nearly half a million road accidents every year cause significant damages to vehicles. 

A car insurance policy offers you numerous benefits. You are at risk of losing all those benefits and inviting unwanted troubles in case of policy expiration. Following are the consequences if your four-wheeler insurance policy gets expired:

  • Financial loss in case of a mishap 

Who knows when a person meets with an unfortunate accident that brings huge damages to his vehicle! If your car insurance has expired, there can be a big hole in your pocket to meet repairing costs incurred due to these damages. 

  • A punishable offence by the Indian Motor Law

Driving with expired car insurance is an illegal offence under the Motor Vehicles Act in India. You will be levied a penalty of up to Rs. 2000 or can be detained for up to 3 months. It is better to renew the policy on time to avoid such unwanted trouble.

  • Reduced Insured Declared Value 

If you renew an expired policy, the Insured Declared Value (IDV) of your car can be reduced after inspection. Since a valid insurance policy is obligatory on all vehicles, keep renewing yours on time. You will not have to bear the loss of reduced IDV due to the surveyor’s new inspection report. 

  • Loss of No Claim Bonus (NCB) 

NCB is the discount on premiums offered by the insurance company. It is the reward to drive your vehicle in a disciplined way without any damage. Every year it gets added to your account for up to the entire five years of the policy term. If your car insurance policy expires and you fail to renew it within the permitted grace period of 90 days, you will lose your NCB. With a valid policy, you can carry NCB for years and transfer your NCB from your old vehicle to a new one or from one insurer to another. You have another chance to save NCB during the grace period.

Note that you cannot renew an expired insurance policy after 90 days. If you are unable to renew a policy within this grace period, your existing policy will lapse permanently with all benefits. You will have to buy a new policy and go through the whole process of necessary documentation and car inspection again, in the case of a comprehensive motor insurance policy. 

What to do when your car insurance expires?

  • Contact your insurance provider as soon as possible.

If you have missed the renewal date, you can contact your insurance provider online to take things forward. Most probably, you can save your penalty by reinstating the insurance policy. The online renewal system takes only a couple of hours for renewal.

  • Avoid driving your car. 

If you drive with an expired policy, you are ready to put your car at further risk. It may be that after meeting even a minor accident, you lose the chance to renew your policy. Instead, quickly call and check with your insurance company if it has an option to renew your policy online. 

  • Buy a new four-wheeler insurance online.

If you have missed the grace period and the insurance company has cancelled your policy due to non-payment of premium, you have no option other than buying a new four-wheeler insurance policy.

  • Compare four-wheeler insurance online

There are numerous insurance providers in India offering car insurance online. Since insurance costs change every year, you should compare different four-wheeler insurance online with multiple providers. Look at add-on covers offered by them along with premium. However, various factors determine the premium of an insurance policy. Choosing a well-established and reliable insurance provider with a good claim settlement ratio is always best.

Ensure Timely Renewal, Always

Make sure you have not blocked your car insurer from sending you notifications. Every insurance provider sends reminder notifications through texts and email when your insurance due date to renew is near, usually before a few weeks. Always keep a tab on your incoming messages and emails. You will also be notified of available offers on timely renewals.

By Adam

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