Never Miss to Renew Your Car Insurance

It’s quite common these days to miss a credit card or utility bills payment due to numerous reasons and almost all of us may have been faced with a peculiar situation like this at some point or the other. There may be umpteen reasons such as illness, an emergency situation at home, traveling, hectic work schedule, etc. for unintentionally missing out on or failing to renew the car insurance policy. But sometimes, many intentionally skip car insurance renewal just to save the premium amount without understanding its repercussions and after effects.

Read more



Stay home & renew car insurance in 2 minutes

No documents required
Get Car Insurance starting at only
₹2072/year*
Processing
Other options
Get Car Insurance starting
@ only 2072/year*
  • Save up to 85%* Lowest Car Premiums

  • 20+ Insurers To Choose From

  • 25 Lakh+ vehicles insured

*TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

What is a Lapse in Car Insurance Policy?

Car insurance policy is an annual contract that needs to be renewed by its due date (and time) as mentioned in the policy document. An insurance lapse occurs when one fails to renew the policy by the due date.

After car insurance renewal date expires, any type of car insurance claim made isn’t entertained by the insurance company as the insured does not hold a valid insurance policy. Moreover, after an insurance lapse, in case of an accident, one has to bear the entire cost from his/her own pocket.

The Consequences of Lapse

  • Renewal can be rejected in the insurance lapse period is significantly high.
  • Renewal may be allowed but with some fines & penalties. 
  • One may have to apply again for a fresh policy.
  • Fresh policy is possible only after car survey or inspection. 
  • Company may charge a higher premium on a fresh policy. 
  • Possible loss of annual NCB (no-claim bonus).
  • Legal hassles of driving an unsecured car without a valid policy.
  • Mental harassment, responsibility and possible loss of money, in case of any accident, during the lapse period.

What to do When Your Car Insurance Policy Lapses?

As a first step, quickly check if there is any grace period for car insurance renewal. Sometimes, insurance companies offer a grace period to pay the premium and renew your policy after the due date. Please check this from your agent or insurance company without any further delays. This grace period can range between 3 days and 30 days with or without any late fees, charges or penalties.

Read More: Expired Car Insurance - Things to Do Right Away

After Grace Period is Over, Immediately Renew the Lapsed Car Insurance Policy

In case of an insurance lapse, without any further delay, one should immediately get in touch with the insurance company and check on all the available options for car insurance renewal. Some companies might allow you to renew the policy, in case the insurance lapse is only of a few days, or else insurer will advise you to apply again for a fresh policy.

While applying for a fresh policy after an insurance lapse, one should scan and shortlist insurance companies based on the most competent premium being offered. Simultaneously, one should arrange all the previous policy documents, details of any past claims and basic car documents such as registration certificate, pollution certificate, etc. and keep them handy.

The insurance company must be contacted to arrange a survey or inspection of your car as soon as possible. This survey is required to determine any pre-existing damages, which usually insurer may not cover or charge an extra premium to include this depending on the extent of damage.

Based on all these factors, insurer can review and decide whether you are still entitled for a ‘No-claim Bonus (NCB)’ or not on your fresh policy. Once the survey is done, the premium offered by the company may be valid only for a limited time (typically 24 hours) and one should make a final decision within this time period.

How to Avoid Future Lapses?

Renewing your car insurance is quite simple these days and can be done easily online directly on insurance company’s website or on policy aggregators like Policybazaar.

Typically insurance companies chase and send reminders for policy renewal to customers through automated calls, emails and SMS alerts. Online car insurance renewal is also advisable as you can get a digitally signed policy immediately.

Ideally, one should set reminders on mobile phones or calendars rather than depending on the insurance companies to send renewal alerts. Expert service portals also come handy in such scenarios.

Written By: PolicyBazaar - Updated: 17 September 2021
You May Also Like
  • Transferring Car Insurance from One Person to Another

    Transferring Car Insurance from One Person to Another In the current economic climate that encourages consumers to “reduce, reuse and recycle”, it is becoming increasingly common for people to purchase second-hand...

    read more
  • 9 Secrets That Your Motor Insurance Provider Won’t Tell You

    9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall saf...

    read more
  • Money Saving Advice for All Car Owners

    Money Saving Advice for All Car Owners After a dream home, a dream car is your second-largest purchase that you make in your lifetime. But the expense does not cease when you drive off the car dealer's lot. Read mor...

    read more
  • Difference Between Comprehensive Insurance and Third Party Insurance

    Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage that pays for the repair or replacement of vehicle damages resulting from an incident. Comprehensive ca...

    read more
  • Types of Motor Insurance

    Types of Motor Insurance The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, ...

    read more
Search
Car insurance save up to 85
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices

Why buy from Policybazaar?

  • 24x7 Claims Assistance
    NEW
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
Know more

Car insurance articles

Recent Articles
Popular Articles
Best Cars Under 15 Lakh

07 Dec 2021

Car companies manufacture different cars in different price range...
Read more
How to Get a Car Pollution Certificate Online?

03 Dec 2021

Despite modernisation in India, air pollution continues to harm...
Read more
Driver and Passenger Cover in Car Insurance

29 Nov 2021

While driving, it is easy to get distracted, especially, during...
Read more
Cashless Car Insurance - What is Cashless Car Insurance Policy?

24 Nov 2021

Cashless car insurance is one such advanced feature that motor...
Read more
Things to Know About Total Loss Car Insurance Claim Process

22 Nov 2021

Imagine you have raised a claim after your car gets damaged in an...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Insurance offers much-needed financial protection in case of a crisis. When vehicle insurance is mandatory in India...
Read more
Transferring Car Insurance from One Person to Another
In the current economic climate that encourages consumers to “reduce, reuse and recycle”, it is becoming...
Read more
How to Check Car Insurance Status Online on Parivahan Sewa/ RTO?
In India, buying car insurance is a compulsion for every car owner. It doesn’t matter if you are an excellent...
Read more
Multiple Ways To Check Your Car Insurance Status Online
Keeping a check on your car insurance policy is as important as purchasing a comprehensive insurance policy for...
Read more
Difference Between Comprehensive Insurance and Third Party Insurance
Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage...
Read more