OneInsure Blog

27-09-2017-Car_Insurance_Laps
Car Insurance

Has there ever been an instance where you forgot to pay your credit card bills by the due date? If so, you know about the penalties that follow for late payments and the inconveniences caused. The same goes for when you delay paying your car insurance premiums on time.

Consequences

Never let your car insurance lapse, even if it is for a short period of time. Some individuals intentionally do not renew their car insurance just to save a couple of bucks on the premium. But this is far from sensible. Here's a look at what can go wrong if you drive around with a lapsed cover:

  • Without an active insurance cover in place, you expose yourself to financial liability in terms of repairs if your vehicle gets damaged in an accident.
  • Any compensation to be paid to the family of the deceased involved in the accident would become your responsibility. 
  • If the cops catch you driving with a lapsed cover, you will be asked to pay a fine, and in the worst case scenario, you could face some jail time.
  • You stand to lose your No Claims Bonus, which is the discount you get on your premium for every consecutive year you don't file a claim, if your policy has lapsed three months. 

So why would anyone, in their right state of mind, purposely allow their car insurance policy to lapse, given that there is nothing to gain and a whole lot to lose?

What to do if your car insurance has lapsed?

Option 1:

If you are trying to reinstate a lapsed cover, you would have to follow a process that is rather similar to getting a new car insurance policy. In case you are only applying for a third-party cover, the procedure is not that difficult and the insurance company will provide you the cover even after a break. But if you are looking for a comprehensive policy, the process will take slightly more time. For expired car insurance renewal online, you will be required to fill up a fresh proposal form. The insurance company will inspect your vehicle and document any pre-existing damages to the vehicle. These damages will not be covered even though the insurance company agrees to insure the vehicle. It must be noted that insurance companies may charge a higher premiums for cars whose policies have lapsed.

Option 2:

You can reach out to us via our App (OneInsure - Policy Manager), email us or call us and we will take matters from there. We shall see to it that you are issued a policy for your vehicle at the earliest.

Prevent it from happening!

Did you know you can set payment reminders on the OneInsure App? Yes, all you need to do is click on the Set Reminders button and enter information pertaining to your premium - premium due date, premium frequency and premium amount. When you are done, click on Set Reminder option. You will begin receiving notifications via SMS and Email as the payment date draws near.

If the issue is with affordability and the cost is what’s causing you to delay or forgo paying premiums on time, you may want to look into changing your coverage. Shop for policies that will cover your vehicle for a lower rate. Remember, no good comes from letting your car insurance policy lapse. When left completely unprotected, you may have to shell out considerable sums of money in case of lawsuits following an accident. To save your time, money and effort, make sure to have an insurance policy in place for your four-wheeler and always see to it that you pay your premiums on time.

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