What are the Drawbacks of not Renewing Car Insurance on Time
You can be involved in an unforeseen car accident at any time. This is where your vehicle’s damages are covered by car insurance.
The government has made it mandatory for all vehicle owners to get automotive insurance to drive on the road. Automobile insurance covers not only your car from the costs of repairs and damages but can also protect your family and other passengers. It would help if you didn’t forget about car insurance renewal. Not renewing your car insurance on time has some significant drawbacks.
Drawbacks of Not Renewing Your Car Insurance Policy
Some of the disadvantages of not having your car insurance renewal before expiration are –
- Legal Issues – It is mandatory to have an insurance policy for your four or two-wheeler while driving on the road. Under the Motors Vehicle, all vehicle owners must have car insurance. A police officer might stop you and check for your insurance papers. Not having one can make you face a lot of legal issues. It is essential to have an insurance policy for your car and protection from financial stress caused by accidents.
- Financial Burden – If you do not renew the third-party liability of your automobile insurance, it can be real trouble for you if your car gets involved in an accident and ends up causing harm to some other third party. If your car insurance renewal has not happened, your insurance provider will not be paying for any damages. The money for third-party damages would go out of your own pockets. You can have your car insurance renewal after the due date, and you have to contact your insurance provider to guide you with the whole process.
- Costs of repair – If you do not renew your car insurance before its expiry date, your car insurance provider will not pay for any car repairs. The money for repairs would be paid by you directly. Car repair can be costly for certain cars. You should renew your car insurance before its expiration. Car insurance renewal can be done online or through your insurance agent.
- Car Inspection – Renewal of car insurance after the due date can lead your car insurance provider to inspect your vehicle again. This is done to check for any damages that might have occurred after the car insurance policy’s initial expiry. These inspections can take days and, in some cases, weeks, which makes it a time-consuming process for you and your insurance provider.
- Grace Period – Car insurance providers offer a grace period for a few days after your car insurance policy has expired. This period is there for customers to immediately renew their policy so that their vehicles are covered from any damage. The policy premium will not be higher if you renew your car insurance policy within the grace period. However, your car insurance premium will increase if you renew your car policy after the grace period has expired. Furthermore, if your car gets involved in an accident during the grace period window, you would not be able to make any kinds of claims as your car insurance provider will reject them based on an invalid car insurance policy as it has expired.
- Reset of NCB – Your No Claim Bonus (NCB) which builds if you do not make any insurance claims, can go to zero if you do not renew your insurance policy before its expiry. You can get a renewal discount of more than 40% if you have not made any insurance claims in 5 years. It is essential to renew your car insurance policy so that your insurance provider does not reset your NCB score.
- The hassle of Renewing – Car insurance renewal after the due date is a hassle and time-consuming process. Not only that, you would have to pay penalties or even for the costs of transporting your vehicle to a repair shop. If you renew your car insurance policy on time, you will be saved from all this trouble.
Benefits of Car Insurance
There are numerous advantages to getting car insurance renewal such as –
- Personal Accident Coverage –Personal accident coverage is provided with car insurance up to a specified limit. Personal Accident Insurance covers you in the event of permanent total disability or death caused by accident. Furthermore, this coverage can be obtained for unnamed passengers under the motor insurance policy for a predetermined fee.
- Vehicle Damage –The primary reason for purchasing auto insurance is to protect your vehicle from various types of damages that may occur due to accidents, fires, technical issues, and other factors. Your auto insurance company will also cover the cost of getting your car to the servicing station. Furthermore, any litigation brought against you as a result of an accident must be covered by your auto insurance company.
- Network Of Garages –Most trusted insurance companies have an extensive network of garages where your vehicle can be repaired without any issue. The services provided by these garages are cashless and paid for by your insurance provider.
You can compare different kinds of car insurance online while renewing your policy. If you continue your policy through digital-first insurance companies, you will save more money as they do not have to depend on any middle party to sell their car insurance. Car insurance policy renewal is easy and saves you a lot of time, you do not have to fill any forms, and you do not have to submit any documents when getting your car insurance. Some insurance companies provide you with the option of uploading pictures of your car to avoid the whole inspection process. Renew your car insurance before expiration to save yourself from all the trouble of not renewing one.