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What If Your Car Insurance Policy Has Lapsed? Can You Renew It

What if, one day you discovered that your car insurance policy has lapsed? Few questions which might come to your mind are:

  1. Can you renew the policy again?
  2. What will happen to the benefits that existed in your lapsed policy?

Lapsed policy is a case which is treated by different insurers in their own way. Most insurers may not allow you to renew a lapsed Car Insurance policy online. Your insurer can consider the renewal as a new policy and may not transfer all the benefits of the old policy into the new policy. Even if the policy is bought or renewed online, whatever may be the case? Your car would have to go through an audit from an appointed surveyor from the insurer.

Few things that you need to keep in mind:

Contact the Insurer: The first and foremost thing that you should do is to contact your advertiser immediately .As most insurer don’t prefer to renew a lapsed policy so they preferably would like to look at the current condition of the car to evaluate to come with new quote for premium for the new policy so it is important to notify the insurer first and know the policies underlying.

Act immediately: if you have missed the renewal deadlines just by few days your insurer can just give you a leeway and can renew the policy by the regular process. Once the passed away days are several weeks then there is always a chance that you might end up being offered a new policy by your insurer. The worst thing is that if some damage happens during the uninsured period then the same would never be covered by the insurance provider.

What can be the effect of delayed renewal of lapsed policy?

Your car insurance policy generally has two components- own damage cover and third party cover. Since third party cover is a mandate as per the transport guidelines in the country and the same not being affected by the condition of the car in that case your insurer provider can easily renew the policy without even charging an extra premium. On the other hand due to delayed renewal the most affected part would be the own damage section of the policy. Since the own damage cover depends on the condition of the car so in case of delayed renewal of lapsed car Insurance policy you might have to face inspection from the insurer’s supervisor who would try and evaluate the current condition of the car to decide upon the premium of the policy for the next period.

Other than factor discussed above which affect the premium the other thing which can effect is that no claims discount which you might have enjoyed in the policy’s previous term. In case of lapsed policy the insurer can also forfeit the benefits of the no claim bonus carried from the previous term of the policy so you end up paying higher price of premium for the policy.

Keeping things on schedule and paying renewals can help you get away with issues you may faced with lapsed policy .It can also help you draw more benefits from your policy.