Why insurance renewal is important for your motor?

It is quite common to miss a credit card or utility bill payment due. The reasons could be endless like illness, emergency, travelling, hectic work schedule, etc. While, this is still a minor thing that could be rectified in time, skipping a motor insurance policy might will put you in danger of serious financial loss, if you were to meet an unfortunate incidence during this time. Also, most people who skip policies just to save the premium amount without understanding its repercussions will have to face the hassles later.

A motor insurance policy is an annual contract that needs renewal after every year on its due date as mentioned in the policy document. A lapse occurs when one fails to renew the policy by the due date. So, if the renew date passes away and had it been you meet an accident or so, any type of claim made will not be entertained by the insurance company. Moreover, after a lapse, in case of an accident one has to bear the entire cost from one’s own pocket. Therefore, it is important to have your motor insurance renewal on time to keep the cover continuing and prevent any financial losses.

Every motor insurance policy comes with a grace period for renewal. You can check this from your agent or insurance company without any further delay. The period can range from 3 to 30 days with or without any late fees or charges for using this grace period. You should immediately get in touch with the insurance company and check on options to renew the car policy. Some companies might allow you to renew the policy in case the lapse is only for a few days or else insurer will advise you to apply again for a fresh policy.

If you’ve applied for a fresh policy after a lapse, you should scan and shortlist insurance company based on competent premium offered, benefits & features available. Simultaneously, one should arrange all the previous policy documents, details of any past claims and basic motor documents such as RC, pollution certificate, etc. and keep them handy.

Motor insurance policy renewal is quite simple these days and can be done easily anytime from the place of your choice on companies websites. Nowadays, companies have introduced apps through which you can not only purchase policies, but also manage many things like paying premiums, renewing policies or claiming them. Insurance companies also chase and send reminders for policy renewal to customers through automated calls, emails and SMS alerts. Online renewal is also advisable as you can get a digitally signed policy immediately.

One can set reminders on mobile phones or calenders rather than depending on the insurance companies to provide renewal alerts. Expert service portals also come handy in such scenarios.

The consequence of motor insurancepolicy lapse:

•Renewal may be rejected

•Renewal may be allowed, but with some fines & penalties

•Fresh policy possible only after vehicle survey or inspection

•The company might charge a higher premium on the policy

•Possible loss of annual No Claim Bonus

•Utilize your valuable time and energy, take higher responsibility and possible loss of money in case of any accident during the lapse period