In these hectic times we tend to forget a lot of things, including making important payments by their due date. It all depends on what our priorities are; while high-priority things remain at the forefront of our minds, things which we do not set too much priority by, we tend to forget. Car insurance is something we do not give too much priority to, especially if we have just completed one accident-free year. The idea is to always try an save up on expenses whose benefits are not tangible and not immediately apparent. This can be a huge mistake, for mishaps do not announce their arrival, or inform you before they arrive. Moreover, if you forget to renew your car insurance, you will not only lose your due benefits, but may also have to face heavy financial consequences, all of which you will have to bear from your own resources, which negates the very reason for which you had bought the car insurance in the first place. You must remember that you can renew your car insurance online, which will save you much anxiety. Now let us take a look at the various consequences of not renewing your car insurance on time, which will render your car insurance policy invalid as it will stand lapsed.
Consequences of not renewing your car insurance on time
- You may have to apply for a fresh policy which is an expensive deal, as you will lose all the benefits accrued to you on your old policy, especially if your have made no claims during the period of its validity. You will lose the no-claims bonus.
- Though your insurance provider may allow a renewal of your lapsed policy, they are likely to charge heavy fines and penalties.
- Moreover, you will have to go through all the hassles of car inspections all over again, as the insurance provider is unlikely to issue a fresh policy without conducting a physical survey.
- The insurance provider will in all likelihood charge a higher premium to renew a lapsed policy.
- Though it is not always the case, you are likely to lose your no-claims bonus if you have not raised a claim on the policy during the course of its validity.
- There may be too many legal hassles to contend with if you are caught driving your car without a valid and functional comprehensive car insurance
- If you should get involved in an accident after your car insurance policy has lapsed owing to a failure to renew it on time, you will have to bear all the expenses of repair and damages caused to self and third party, from your own pocket. This is not the most desirable situation, because for all your negligence, you may have genuinely forgotten to renew your comprehensive car insurance before its date of expiry.