What will happen if I don't renew my car insurance in India?

Prisha735

If you don't renew your car insurance in India, you may have to pay a fine. Your car may also be impounded.

smallpanda100

First and foremost, driving a vehicle without insurance is illegal in India. Failing to renew your car insurance on time will result in hefty fines. The Motor Vehicle Act, 1988, makes it mandatory for every vehicle owner to have their vehicle insured.

Not renewing your car insurance in India can have several consequences, for instance:

You may have to face legal issues:
If you are found to be driving a vehicle without an insurance policy, then you could be prosecuted and have to pay hefty fines or even imprisonment for up to 3 months.
You may have to pay more to renew your car insurance in India:
If you don’t renew your car insurance on time, your insurer may increase the premium rate, as you would be considered a high risk driver.
Your insurer may offer limited coverage:
If you fail to renew your car insurance, your insurer may offer you only limited coverage if they deem it necessary. Your insurer will assess the risk involved before offering a policy.
You may be unable to claim your car insurance:
If your car was damaged while uninsured, you would be unable to claim your insurance policy. As your vehicle would not be insured, you would be forced to bear the entire expense for the loss or damage to your vehicle.

To ensure that you don’t fall in this situation, you should renew your car insurance immediately or at least before the expiry date.

To learn more about car insurance and discover the best policies available in the market, you can refer to the New India Car Insurance website here: https://www.newindia.co.in/car-insurance.aspx

sadduck721

It is mandatory in India to have valid motor insurance on your vehicle at all times. Therefore, not renewing your insurance policy can have far-reaching consequences.

First and foremost, driving an uninsured vehicle is a criminal offence. You may have to pay a fine or face other legal consequences as per the Motor Vehicles Act, 1988. Secondly, it can potentially put your financial health at risk. In the event of an unfortunate accident, you will have to bear the entire cost of repair and damages from your own pocket depending on the damage caused.

It is, therefore, very important to keep your motor insurance policy valid at all times. To make sure you don't miss out on getting your insurance renewed on time, here are a few tips that you can follow:

Set reminders- Setting reminders either on your phone or calendar can help you keep track of when your policy expires.
Compare offers- You can compare premiums online to select the best deal. This can help you save on your insurance costs.
Pay attention to notifications- Your insurance provider may send different types of notifications or reminders urging you to renew your policy.

Lastly, you may also take advantage of automated renewal services offered by some insurers. This enables them to renew your policy automatically when the current policy ends, ensuring you don't miss out on the renewal.

I hope this helps!

References:

Motor Vehicles Act, 1988
https://www.mahalaxmimfltd.in/motor-vehicles-act-1988/
How to ensure Smooth Car Insurance Renewal
https://www.licmotogeneral.com/how-to-ensure-smooth-car-insurance-renewal