Why Car Insurance Policy Lapses?

Car Insurance Policy Lapses

Getting car insurance online policy is the very first thing that you must consider after buying a vehicle. In fact, you can’t drive your vehicle from the shop to home without insurance. It is advisable to avoid cheap car insurance policies. We compare car insurance quotes of different car insurance companies online to get the best policy in terms of coverage. Even after all these, your car insurance policy may lapse if you don’t act carefully. The lapse of your car insurance means that your vehicle is unprotected under the car insurance plan that you had bought. Below are some of the possible reasons as to why your car insurance online policy may lapse.

• Non-payment of the Car Insurance Premium: You are responsible for paying the premium against your car insurance online policy. If any circumstance renders you to the non-payment of car insurance premium, your car insurance policy will lapse.
• Late Payment of Your Car Insurance Premium: You want to make sure that the due car insurance premium is paid on time. Otherwise, your car insurance may lapse in case of the late payment of your car insurance premium.
• Non-renewal of Your Car insurance Policy: If you think your job is over after buying car insurance online, you are certainly wrong. Your car insurance policy will lapse if you don’t consider the importance of car insurance renewal. You must make sure that your car insurance renewal is done on time to continue receiving the benefits offered by car insurance companies in India.

What Can You Do?

However, there’s nothing to panic if your car insurance policy lapses. There’s certainly something that you can do in case your car insurance lapses. Here are the two things that you can do when your car insurance policy expires

• Inform Your Existing Car Insurance Provider: For the car insurance renewal, you can inform your existing car insurance provider if you want to renew your policy from the same car insurance company. The car insurance provider will inspect your vehicle. After the inspection, the car insurance company will give you confirmation regarding the coverage of your vehicle.
• Renew Your Car Insurance from Different Provider: You can also consider the car insurance renewal from a different car insurance company in India as per your requirements. For this, you can compare car insurance quotes of different car insurance providers online and choose any for your car insurance renewal

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There can be many consequences if you do not renew your car insurance policy. Hence, you should not allow your car insurance policy to lapse. The renewal of your car insurance is equally important to buy a car insurance plan in India. The penalties of not renewing car insurance in India include imprisonment, or fine or both. You may also lose your no claim bonus on your car insurance policy if you let your car insurance lapse. Therefore, you must not let your car insurance policy lapse in the first place and follow these above-described process if car insurance lapses.