5 Things To Do When Your Car Insurance Expires
To avoid complications and ensure continuous coverage, never letting your car insurance expire is crucial. Familiarise yourself with the validity of vehicle insurance of your car insurance policy and remember to renew it before the due date approaches. Typically, motor insurance policies are valid for one year, and timely renewal will spare you from having your vehicle inspected again.
Allowing your motor insurance policy to lapse comes with significant risks and penalties. Moreover, your vehicle will be subject to inspection before expired car insurance renewal. Therefore, it’s of utmost importance to renew your policy promptly, saving both time and money while securing your peace of mind.
Ensuring you stay in a safe position requires a few essential steps. Once your car insurance policy expires, your vehicle becomes fully vulnerable. In the event of any unfortunate incidents like theft or fire, you won’t be eligible for any financial coverage. You’ll have to bear the expired car insurance renewal expenses on your own, which can be financially burdensome.
How Does a Car Insurance Work?
Car insurance refers to an agreement between the vehicle owner and the insurance company. According to this agreement, the owner must pay premiums to the insurance company, and they would cover the damage or loss caused to the vehicle. As per the recent vehicle acts, acquiring car insurance for expired policy for both personal and commercial vehicles is mandatory. Several car insurance companies have tie-ups with reputed vehicle manufacturers who can offer instant quotes to car owners.
Types of Vehicle Insurance
There are two types of car insurance, as listed below:
- Third-party liability insurance cover- This insurance provides restricted coverage as it only safeguards you against expenses arising from damage caused by your car to another car, property, or individual.
- Comprehensive insurance cover- This insurance covers various scenarios, including damage to the insured vehicle, injuries or death of the driver and passengers, and damage caused by a vehicle to third-party vehicles, property, or individuals.
What to do When a Car Insurance Policy Has Expired?
To avoid a car insurance expired fine, make sure to act accordingly while keeping these points in mind:
- Contact your agent: As soon as you become aware that the vehicle insurance expired, it’s essential to contact your agent. They possess comprehensive knowledge about the procedures that follow the policy’s expiry and can assist you in renewing it. Alternatively, you have the option to renew the policy online, which can save you time and effort. However, it’s crucial to note that renewing car insurance expired policy might lead to a higher premium. Therefore, consider acting promptly to avoid potential increases in the premium cost.
- Avoid driving the car: Under no circumstances should you drive your car if your insurance expired. Doing so puts you at a significantly higher risk since you’ll be driving without insurance coverage. In the unfortunate event of an accident, you could be held financially responsible for the damages to third parties as well as the loss or damage to your own vehicle, resulting in out-of-pocket expenses.
- Keep the documents in place: Once you’ve selected the desired insurance policy, communicate with the insurance company to inquire about the necessary documentation. Make sure to keep a copy of your previous policy and registration certificate readily accessible, as they will be essential during the car insurance renewal after expiry process. Additionally, you’ll need to provide further details, such as the location of your car’s registration, its age, model, brand, and the date of its initial registration.
- Choose the policy: If you intend to switch insurers and purchase a policy from a different company, it’s advisable to compare various policies online before making a well-informed decision about the expired car insurance renewal online.
- Prepare for the vehicle survey: If your car insurance expired, the insurance company will send a representative to assess the car’s condition before approving the new insurance application. To prevent any delays, it is essential to schedule an early appointment for the inspection. It’s important to note that you may not qualify for insurance coverage if any damages are discovered during the inspection. However, some insurance companies offer a self-inspection option, allowing you to renew the car insurance validity without waiting for a representative to inspect the car.
Ensure you set reminders of the car expiry date and remain vigilant about renewal dates and new car insurance validity to avoid missing premium payments and prevent policy lapses. Owning a car involves more than independent driving; it teaches responsibility and the importance of making informed decisions to protect your vehicle and fellow drivers on the road.