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    Car Insurance Renewal: Here’s What to Do When You Miss the Expiration Date to Renew Your Policy

    Representative image. (Photo: Reuters)

    Representative image. (Photo: Reuters)

    A lot of times people miss out on the renewal of their vehicle before the expiration date, which can be very problematic for many reasons other than legal.

    Having car insurance is mandatory by law. Driving without it carries a minimum penalty of Rs 2,000 which may go up to Rs 4,000 on subsequent offence. Even a third party insurance works as far as the law is concerned but having a comprehensive cover for your vehicle is definitely the better choice. However, a lot of times people miss out on the renewal of their vehicle before the expiration date, which can be very problematic for many reasons other than legal.

    Failing to renew insurance in time can lead to a lapse of No Claim Bonus (NCB) that you may have accrued over the years. It is a form of discount on the premium for every year that goes claim-free.

    In the event of passing the expiration, first of all, avoid driving till you get the insurance renewed. Then contact your insurance agent as soon as possible to get it reinstated.

    Once the insurance expires, you will have to get your car inspected once again by a representative of the insurer who will judge the condition of your car to decide the Insured Declared Value (IDV). The representative will check for any pre-existing damages to the car before approving your eligibility for insurance.

    Insurance companies usually offer a grace period of 15 to 30 days from the expiration date under which the policyholder can pay the premium amount and save the insurance from lapsing.

    According to Naval Goel, Founder and CEO of PolicyX, “if a person misses the grace period as well, then he or she has to buy a fresh car insurance policy.”

    “At the time of renewal, the policyholder can simply renew the existing policy or choose for an enhanced cover as per the requirements. If any pre-existing damages are found significant, the policyholder may not be eligible for the renewal of the expired car insurance policy,” says Ankit Agarwal, managing director, Alankit Ltd, was quoted by CNBCTV18 as saying.

    “Once the insurance company is informed, an appointment would be fixed for the survey of the vehicle. The surveyor will inspect the car and see if there are any pre-existing damages," said Sajja Praveen Chowdary, Head-motor insurance, Policybazaar.

    Chowdary added that during renewal, policyholders can switch to another insurer if they are not satisfied with the current one or if they find a better offer somewhere else.

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    Policyholders can conduct online research and evaluate various options before making a final choice.


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