There may be two scenarios of car insurance renewal after an accident. These include:
Let us understand both scenarios one by one:
If your car insurance renewal date is near and your car meets with an unforeseen accident within the coverage period you will raise a claim under your existing car insurance policy. The claim will be raised by informing the insurance company about the damages sustained by the insured vehicle. After the claim verification, the insurer will get your car repaired in a cashless garage and your claim will be settled directly by them.
However, one thing to note here is the impact of raising a claim on your No Claim Bonus discount. As soon as you will raise a claim under your car policy, you will lose your accumulated NCB reward which you received for not raising a claim. Once lost, you will not be able to receive any discount on premiums when you renew car insurance policy for the next policy year.
Here, you will be able to renew your four-wheeler insurance as usual after the accident but will not receive any discount as you have already raised a claim during your policy year.
When you do not renew your car insurance policy before its expiry date, it becomes lapsed and you lose your insurance coverage. If you meet with an accident when your policy has become lapsed, you will not be able to raise a claim with your insurer. In such a situation, you will have to pay for repair expenses from your own pocket.
Once you get the repairs done from your pocket, you can get your car insurance policy renewed or purchase a new four-wheeler insurance policy for your car. You may also have to go through the process of re-inspection of car at the time of renewal. A third party car insurance does not require inspection but if you are buying a comprehensive car insurance policy, you will need to upload a self-inspection video.
Also, the NCB you have received will be valid only for 90 days of grace period after which it will be lost as well. Thus, if you renew your car insurance within the grace period, you can receive the NCB discount on your renewal premium. But, you will have to shell out money from your pocket for any repairs arising out of an accident
Moreover, driving with a lapsed/expired car insurance policy is illegal as per Indian Motor Laws and you may have to pay heavy traffic fines if caught by a police officer.
As stated above if you met with an accident after your policy has expired, you will have to bear the repair costs all by yourself. Once you have got your car repaired, you can buy a new car insurance plan or renew the existing one by following these steps:
To summarise, if you meet with an accident after your car insurance policy has expired, you will have to pay the repair expenses from your pocket. After which you can renew your car insurance policy or purchase a new one since your existing one has expired. Please note that the insurer will not pay for the damage sustained by your car while your policy has lapsed.
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