When Your Car Insurance Lapses – Run for Cover!

By BankBazaar | December 26, 2016


Buying a car comes with responsibilities, one of which is making sure you acquire a good Car Insurance policy. Without one, you could run the risk of shelling out a bomb in penalties, exposing your car to uncovered risk of damage and even possibly ending up in jail.

Car Insurance is basically a contract between you and the insurance company wherein you agree to pay a premium and the insurance company agrees to cover any damages or loss of the vehicle in return.

When you fail to pay a premium, things start to get slightly tricky. If you lapse on your premium for more than three months, you not only lose all benefits of the Non-Claim Bonus (NCB) percentage, but you could also end up accumulating a fair amount in penalties!

Also, if the traffic cops catch you with “expired” papers, it could land you more fines and maybe some prison time. Your vehicle could also be confiscated. Yikes!

Additional Reading: Get The Most Affordable Car Insurance Policy

How Bad is Too Bad?

  • A few days (Not too bad)

If you’ve defaulted on your premium payment by just a couple days, don’t worry too much. It isn’t that bad at all. You would probably have to pay a small fine but you wouldn’t really lose out on your NCB claim.

  • More than a couple of months (Pretty bad)

If you’ve defaulted on your premium payments by a few months or more, you not only lose out on your NCB, but may also lose the opportunity to renew with the same company if your car is damaged or in bad shape.

Additional Reading: Factors That Determine Your Car Insurance Premium

Help! Now What?

If you default for a longer time, do not wait around. Call up your Car Insurance company or agent immediately asking about renewal policies.

The company will probably treat the renewal as a fresh application and send an agent over to inspect your vehicle. Once the agent gives you a thumbs up, your policy will be processed within 5 to 10 days.

Additional Reading: What To Do If Your Car Insurance Lapses

How Do I choose the Right Policy?

Choosing the right policy can be confusing. Here are a few pointers on what you should consider while picking your Car Insurance plan:

  • Check annual rates offered by different insurers to get the best deal.
  • Always consider the rating of an insurer. Some insurers handle payments, claims and non-claim payments better than others.
  • Check for the amount of coverage you will be receiving. The larger your cover, the larger the amount of protection.
  • Consider looking for special discounts. For example, if you are married, have a good driving record and are older, you could qualify for a lower premium.

Additional Reading: What To Consider When Choosing A Car Insurance Policy

Take Your Pick

Who doesn’t like choices? If you want to discontinue your current Car Insurance policy and/or are looking for a better, more pocket-friendly plan, look no further.

We’ve put together a list of some popular Car Insurance policies for you to choose from.

This award-winning Car Insurance policy doesn’t just have a wide network of garages on cashless claim, but also offers some amazing discounts if you opt for Voluntary Excess or have an anti-theft device in your car. The policy also offers you and your dependants a Personal Accident Cover in case of permanent disability or death by accident.

This policy has more than 4,000 cashless claim network garages spread across the country. What makes this policy special is its Zero Depreciation and Third Party cover. The Zero Depreciation feature safeguards your accumulated NCB if your vehicle is affected by a natural disaster. The Third Party cover protects you from any kind of liability arising from an accident where a third party is involved.

While this policy also offers a cashless claim network of more than 2,000 country-wide network garages, it also offers location-based discounts. You also get an additional third party cover of Rs.10 lakhs in case of an accident.

We recommend this policy for the humongous discounts it offers. If you purchase a Car Insurance policy for a large sum with Future Generali, you could avail a discount of up to Rs. 4 lakhs. Wowza! The cover also allows you to receive the full claim without any depreciation deductions.

Additional Reading: Car Insurance Plans In India

So, get yourself a solid Car Insurance policy today and drive home with the wind in your hair. Oh, and don’t forget to set an SMS alert to remind you about your upcoming premium payment.

Happy driving!

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

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