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Know The Grace Period After Your Car Insurance Expires

An expired car insurance presents possibility of the owner being entangled in third party legal hassles.

  • 05 Jan 2022
  • min read

Earlier buying an insurance policy and its renewal was really a very cumbersome process. With the advent of technology, the whole procedure has become so much simpler. In fact, the majority of service providers offer the option of completing the entire buying and renewal of policies online to their customers.

While the insurance companies have their own websites where you can get this done, another option is to use third party aggregator sites too. You can primarily use these sites to compare the various benefits offered by the insurance companies at the time of buying or renewing their car insurance policies .

Grace Period After the Car Insurance Expires

There is no grace period after insurance expires under law. It all depends on the insurance companies. The grace period for the insurance plan may vary from 3 days to 30 days as per the terms and conditions of the policy issued by the insurance company. The customer must check about the car insurance grace period at the time of buying the insurance policy.

Consequences of Not Renewing Car Insurance Before Expiry

Under the Motor Vehicles Act driving cars on Indian roads without third party car insurance is illegal. Such action may invite imposition of penalties and fines. It is advisable to renew your car insurance before its expiry date.

Furthermore, if the car owner is involved in any car accident after the expiry of the car insurance policy, but before its renewal, then there is a possibility of the owner being entangled in third party legal hassles.

Also read:

The Outcome of Not Renewing Car Insurance Within the Grace Period

The grace period after insurance expires varies between various insurance companies. The car insurance can be renewed even after expiry of the grace period. The practice usually followed by the insurance companies is that they will charge some sort of a late payment fee if the delay is reasonable, say, within one month of the car insurance grace period

But if the delay in renewing the car insurance is excessive then the possibility is that the insurance company may cancel the policy itself. After the cancellation of the car insurance policy by the insurance company, no claims of the car owner will be acceptable. This situation may leave the car owner exposed to legal and financial liabilities. The car owner should also not drive the car until the renewal process is complete.

So, it is prudent for the car owner to renew the car insurance in time to avoid extra payment.

No Claim Bonus (NCB)

Many insurance companies offer no claim bonus car insurance for safe driving which results in no claims to the insurance company. This no claim bonus is a discount offered to the customers at the time of renewal of the car insurance policy.

But this bonus or discount is available to the car owner only up to ninety days from the date of expiry of your car insurance.

Car Inspection

Some insurance companies may conduct an inspection of the vehicle if the renewal is not made within the grace period. But many insurance companies offer relaxation from such stipulation. However, it is mandatory to carry out an inspection of the vehicle if the insurance renewal is not done within ninety days of the date of expiry.

Change of Insurance Company at The Time of Renewal

A car owner can buy insurance coverage from one insurance company and renew with another. If the owner has not been satisfied with the benefits and services of the insurance company, the best to time for the review of that policy is just before the expiry of the current insurance policy.

Important facts to be kept in mind at the time of renewal are:

  • Renewal Date: Generally, the insurance company will sent SMS alert in your mobile or reminder in your e-mail or both informing you about the imminent expiry of your car insurance policy. This should set the ball rolling for completion of the renewal process.
  • Policy Details: The insurance policy details of the car owner should be kept handy at the time of renewal. The owner should visit the website of the insurance company to which the policy is related and open the “Policy Renewal” link fill up the required details and make the necessary payment online and the renewal process is on. In case the owner has opted for a new insurance company for renewal purpose then the new customer link should be visited to get the insurance coverage.
  • Acknowledgement: After you have completed the process of renewal online and the payment made, the website will issue the applicant an acknowledgement containing an acknowledgement number which can be used to track the status of your renewed insurance policy.

Checklist Before Renewal

Remember to go through this checklist at the time of policy renewal.

  • The Insured Declared Value or IDV in car insurance has to be re-evaluated against the premium charged. In this way, you will pay the best price for benefits enjoyed through the insurance coverage.
  • The claims ratio of the current insurance company must be checked at the time of renewal.
  • The car owner must ensure that service centers with the cashless facility are available near his locality.
  • The car owner must check the discounts available for the payments he or she has to make over and above the claims made to the insurance company.

Please don’t wait for the grace period but get your renewal of the insurance policy done before the expiry date and enjoy a burden less drive.

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