How to Renew Lapsed Car Insurance Policy?

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As per Indian motor laws, car insurance is mandatory for all car owners. If caught driving without a valid motor insurance policy, the traffic police will impose hefty fines. However, some people forget to renew their policy on time, resulting in a lapsed car insurance policy. Read the article below to understand more about a lapsed car insurance policy and how to renew one.

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      What is a Lapse in Car Insurance Policy?

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

      Moreover, if caught driving with a lapsed car insurance policy, you may also have to pay heavy traffic fines.

      What Happens if Car Insurance Lapses?

      There are several negative consequences that you might face if you hold an expired car insurance policy. Here is a list of repercussions that you might face if you have a lapsed policy-

      1. A lapse car insurance policy means you might have to pay revised premium payments to renew and also have to go through the vehicle inspection process.
      2. If your lapse car insurance period is quite long, the insurer might reject your policy renewal request. However, car insurance renewal may be allowed in some cases, but with some fines & penalties.
      3. A lapse car insurance policy means possible loss of the annual NCB (No Claim Bonus).
      4. Hefty penalties are imposed by traffic police for driving an unsecured car without a valid policy.

      Looking at the above-mentioned consequences, it is a good idea to renew your car insurance policy before the expiry date. Furthermore, you can check the below-mentioned steps to renew expired car insurance policy.

      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.
      • You can connect with your agent or insurer to know the status of your policy without making any further delays. This grace period can range up to 90 days with or without any late charges or penalties.
      • In case of a lapsed car insurance policy, you should immediately contact your insurer and check on all the available options for car insurance renewal. In some cases, insurers might allow you to renew the policy when the lapse is only a few days, or else they will advise you to apply again for a fresh policy.
      • While applying for a fresh policy after an insurance lapse, you should check the plans offered by different insurers and compare them based on the features offered and the premium rates. Simultaneously, you must have all your previous policy documents and details of any past car insurance claims and keep mandatory car documents such as registration certificate (RC), pollution under control (PUC) certificate, and driving license (DL) handy.
      • Your insurer will assign a surveyor to check the condition of your car. Your insurer will review and decide whether you are entitled to 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 you should make a final decision within this period.

      You May Also Read: How to Get a Pollution Under Control Certificate for Cars Online?

      How to Avoid Future Lapses in Your Car Insurance Policy?

      Online car insurance renewal is the easiest and hassle-free method available. You can start by searching on Google and choosing a plan per your needs and budget. Also, you can visit the official website of Policybazaar Insurance Brokers Limited and compare multiple online car insurance plans offered by different insurers in one place.

      Usually, car insurance companies send alerts or reminders through SMS, emails, or even calls to their customers to renew the policy on time. Online car insurance renewal is also advisable, as you can get a digitally signed policy immediately. Ideally, you should set reminders on mobile phones or calendars rather than depending on the insurance companies to send renewal alerts.

      Final Thoughts

      As a car owner, you must have a valid four-wheeler insurance policy. Also, you must avoid driving with a lapsed or expired car insurance policy, as it can put you in hurdles. If you are applying for a fresh car insurance policy, then compare different plans offered by insurers and select a trustworthy & reliable insurance provider.

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      #Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc

      *Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.

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