What Happens If Your Car Insurance Policy Expires

Driving an uninsured car is illegal in India, which is why it is imperative to get buy a car insurance. Individuals should refrain from driving a car when it is uninsured. One can buy a car insurance policy via an agent or by directly visiting the insurer's website online. Insurance agents are expected to have requisite knowledge of the policy details as well as registration process. As you renew the policy, the agent can be of assistance to you in many ways. If convenience is of prime concern to you, the best way to buy a car insurance is to go online for a new policy. However, before finalising an insurance policy, you ought to compare policies offered by different insurers so as to grab the best deal.

Why a car insurance is required

An insurance company is meant to compensate in case of accident or death while driving the car. However, if your vehicle is not insured, you will have to bear all the expenses on your own.

After comparing a series of car insurance policies, you can zero in on the insurance provider. You should check with the insurer to determine the required documents. You must have a copy of your previous policy and the registration certificate (RC) of the car since they are mandatory for a car insurance policy. Some additional details that include registration location, car brand and model, age and first registration date will also be required.

Benefits of car insurance policy

Any damage caused to the vehicle in an accident is borne by the insurer. Without the policy, the repairs and/or wear & tear of the vehicle might burn a hole in your pocket.

So, while it is mandatory as per law, it is convenient to your finances to always have your car covered under an insurance policy.

Any accident that involves your vehicle might cause damage to someone else also. The car insurance covers pedestrians, fellow drivers and riders as well as passengers.

In this situation, not being insured will force you to pay for hospital bills and car repair bills of a third party that was involved in an accident caused by your car.

Some car insurance policies also cover vandalism, storm or fire damage and theft. You should take note of the coverage plan of these contingencies before choosing the insurance policy. Some car insurance policies even cover the medical costs if you sustain some injuries during the accident.

Insurance through self-inspection

Some insurers like Iffco Tokio offer the convenience of self-inspection, which means you may immediately renew the car insurance policy without having to wait for the surveyor to physically check your vehicle. One may login via the company's website and opt for the self-inspection option. You are allowed to upload the pictures and videos through the insurer's website. On approval, the insurer will send a confirmation to proceed with the payment to renew the policy online.

Once your car insurance policy has expired, you must not further delay the renewal. And undoubtedly, buying a motor insurance policy online is the fastest and best option in such a scenario.

Four types of coverage under motor insurance:

Coverage of physical injury: Car insurance covers bodily insurance should a person get injured in an accident.

Coverage of third person property: If a third person property gets damaged in a car accident, the insurer will pay for this damage.

Medical cost coverage: If you or your co-passengers get injured and require treatment and hospitalization, the cost is borne by the policy and insurance provider.

Coverage for uninsured or underinsured: This coverage is meant to protect you should you meet with an accident and the other driver is either uninsured or does not have sufficient insurance. However, it is important to note that in most states across India, this type of coverage is for bodily injury, but in a few states, it can also cover property damage.

Other benefits of car insurance policy

If you use the car for personal use, you can avail several benefits when you buy a car policy online. Things such as unlimited zero depreciation cover, coverage against natural calamities and disasters, and round-the-block road side assistance are a few things that you can enjoy with insurers like IFFCO Tokio. You may also get coverage for CNG fuel kit and loss or damage of electrical and non-electrical accessories. IFFCO Tokio has more than over 2300 garages across India its network, where one can get repaid without much hassle. This makes sure that you opt for cashless garage service, which is a big relief.

You can add riders to your basic comprehensive car insurance, such as on-road protector coverage and value auto coverage to customize the car insurance policy to suit your needs (this can be availed during car insurance renewal as well).

What if you do not renew your car insurance policy?

In case your policy expires, you will lose out on the no claim bonus. No claim bonus (NCB) accrues only if you renew the policy within 90 days of expiry. So, if it has been over three months since your policy expired, you will certainly miss out on the NCB. This bonus is given only in a situation wherein the insured has not made any claims in the past

Right time to renew your car insurance policy

The recommended time to renew your plan is just before it lapses. You may submit a renewal request 45-60 days before the car insurance policy's expiry date. Alternatively, you might choose an auto-renewal option. Your insurance provider will auto-renew your plan, thus allowing you to enjoy the policy benefits without any hassles.

As the cliche goes, "it is no use crying over spilt milk". This happens with most of the people in the country. They either don't buy insurance policies or don't bother to renew the car insurance before it lapses. As a result, they end up with a big financial headache. The expenses can easily be averted, if people realize the importance of car insurance and on-time renewal of the same.