Introduction
Many people consider car insurance to be insignificant, and don’t renew their policies because they think they’ll never need them. However, purchasing an auto insurance policy is required by law because it provides protection against legal and financial liability arising from the loss or harm of your vehicle or that of a third party.
Why is an active car insurance policy needed?
Not having an active car insurance policy puts you at a significant risk. In the absence of an auto insurance policy, the costs of car repair and retrieval, as well as the financial consequences, will be incurred by the car owner.
Importance of renewing your car insurance before expiry
- It’s important to keep the car insurance up to date.
Car insurance is a limited-term contract that must be renewed in order to maintain uninterrupted coverage. Renew your car insurance policy on time to make sure you’re covered at all times. You can use an online car insurance calculator to check your quote.
- Non-renewal of your insurance contract may be a legal problem.
When it comes to legal ramifications, driving around with an expired car insurance plan is as good as driving around without one. When a cop catches you, he won’t ask if you “had” a policy; instead, he’ll ask if you “have” one. To prevent legal disputes, the policy must be valid.
- Renew promptly and do not commit the offence again.
It’s a good idea to upgrade your plan a few weeks before it expires. Unfortunately, if your car insurance expires and you don’t realise it before you’re stopped by a cop, you’ll have to pay a fee. In the very least, you can renew your policy as soon as possible. This is because a repeat offence would result in a higher penalty and many more fines you’ll have to pay.
- Financial liability
- If your vehicle is involved in an accident and causes damage to third parties, not renewing the Third-party Liability component of your car insurance coverage can be problematic. The insurer will not be responsible for the losses. As a result, you will be responsible for managing third-party liability on your own.
- If the car needs repairs, not renewing the Own Damage portion of the car insurance policy, which is a part of the Comprehensive Plan, will mean you will have to pay for repairs out of your one pocket
- During the grace period, there would be no coverage.
Car insurance companies do offer you a grace period after your policy expires to extend your coverage. It means that you have a certain amount of time to renew your policy without incurring a premium increase, but you will have coverage in that period.
- Car inspection
If a car insurance policy hasn’t been renewed for a while, the insurer might feel compelled to check the vehicle before renewing it. This is to determine the vehicle’s current condition and to notice any previous damage. Since such an inspection could take a few days to complete, your car may be uninsured for a few days longer. In addition, after a car inspection, the premium payable may be raised.
- NCB reset
The No Claim Bonus that has accumulated as a result of not filing a claim during the policy period can be reduced to zero. If no claims have been filed over the previous five years, the renewal discount may be as high as 50%. If you do not update your comprehensive plan within 90 days of the policy’s expiration date, you risk having your NCB reset.
- Higher premium
In general, if a car insurance policy has expired, the premium would be higher than if it has not yet expired.
- A hassle
All of these things are inconvenient, whether it’s paying a fine, third-party liabilities, or paying the repair bill for damages. You would be subjected to such annoyances if you do not renew your car insurance policy.
Conclusion
Precautions and social distance should be religiously followed, but something as important as a car insurance renewal should not be postponed, now that it can be easily done online. Renewing your car insurance policy online is the simplest and most convenient choice. You can check your premium using this car insurance calculator. It’s risk-free, quick, and easy.