Your car insurance policy is an annual contract between you and your insurer. This contract is renewable on the set date and time stated in the policy document. Without a car insurance renewal, you will not be able to file and receive benefits on claims, as your insurer will not entertain any claims on expired car insurance. Without valid car insurance, you will be solely responsible for the cost of repair and replacement of car parts for your car and any third-party vehicle in case of an accident.
In addition to this, you can be fined by traffic cops if caught with an expired car insurance document. It, therefore, goes without saying that you need to renew your private or commercial vehicle insurance when it expires. In this post, we reveal what you should do after your car insurance policy expires, how to prevent a delay in the renewal of your lapsed car insurance and what happens if you do not renew your car insurance after the set expiration date.
What Should You Do After the Expiration of Your Car Insurance?
As your car insurance expires, you should check to know if your insurer has granted you a grace period for your car insurance renewal. Some insurance companies offer a 90-day grace period, especially to long-term customers, within which they can renew their policy after it lapses.
This grace period may be free of any added charges and save you from late payment fines and penalties. While some insurers may offer a grace period with fines for a late premium renewal payment. Suppose you are unsure of the terms and conditions of your car insurance policy relating to a delay in renewal. In that case, you can get in touch with your insurance agent or broker or contact your insurer to know the available options.
Some insurance companies will require that you purchase a new car insurance policy if you delay renewing your expired policy after a set period which may be as short as a few days following the lapse of renewal. However, getting a new car insurance policy would entail re-submission your car documentation. Also, a surveyor will be appointed to assess the present state of your vehicle to decide the amount of premium you will be required to pay. To avoid the inconvenience that this may pose, you should always renew your car insurance when due.
How to Prevent a Delay in Car Insurance Renewal?
To avoid a delay in your car insurance renewal, you can subscribe to your insurer, providing an email or SMS notification alert whenever your renewal due date is approaching. Many insurance companies offer this service free, but most insurers require you to subscribe to the service while purchasing your car insurance.
Alternatively, you can set up a calendar reminder on your mobile devices. It is one thing to know your car insurance renewal due date, and it is another thing to be able to pay the required premium. To this end, you should try saving up for this purpose early, as you have 12 months to source funds to pay the renewal costs.
Drawbacks of Holding a Lapsed Car Insurance Policy
If you delay in renewing your car insurance policy, you are more than likely to experience the following consequences:
- A delay in your car insurance renewal can lead to you paying an upwardly revised insurance premium.
- Holding on to an expired vehicle insurance policy may leave you having to experience the tiresome and time-consuming inspection process.
- Your request for renewal may be denied if you hold on to your lapsed car insurance policy beyond any express or implied grace period.
- Where your insurer does not deny your request for a renewal of your car insurance after the lapse of a grace period, you may be required to pay specific penalties for the delay in renewal.
- If you delay renewing your car insurance, you may lose your chance of receiving an annual No-Claim Bonus.
- Driving your private or commercially licensed vehicle without valid car insurance will leave you vulnerable to receiving huge penalties and fines imposed by traffic cops.
It is never a bright idea to delay your car insurance renewal. You can set calendar reminder alerts on your mobile device to help you remember the renewal due date. Also, you can request email or SMS alerts from your insurer.
Renewing your car insurance on time will help you avoid paying a greater premium on revised policies while saving the inconvenience of a vehicle inspection. While many insurers offer a grace period, it is advisable to be prepared beforehand for your car insurance renewal; after all, you have a full year to save up.