Your auto insurance policy is not a lifetime policy, and it comes with an expiry date. Most policies come with a 12 months validity. Therefore, to keep your insurance policy valid, you have to renew the policy before it expires. But why is it essential to renew your auto insurance on time? Read on to know more.
The Significance Of Renewing Your Auto Insurance On Time
As the common saying goes, “It is of no use crying over spilled milk.” Most people don’t either buy auto insurance policies or don’t bother renewing them when it expires. Thus, when an accident happens, they end up with a big financial mess. Renewing your auto insurance is essential and should be taken seriously. Simply buying the policy once is not enough. Keep renewing the policy and do not lose sight of the expiry date.
Non-renewal Of Auto Insurance Is Illegal
Driving around the street with an expired auto insurance policy is the same as driving around with no policy at all when it comes to legal matters. And if you manage to attract the attention of police officers, he isn’t going to ask you if you had a policy; he is going to ask if you have one. Failure to produce one will attract stiff penalties as an expired policy is synonymous with lack of insurance. To make matters even more terrible, if you are involved in an accident and your car gets damaged, you must brace yourself for a major financial crisis.
Your auto insurance policy protects you and your car against any financial liability as a result of an accident. Auto insurance also proves to be helpful if you get injured by somebody, or your vehicle gets damaged by another car. Thus, it guarantees freedom from every financial commitment. On the off chance that your vehicle insurance policy expires, all the protection likewise stops, rendering you financially powerless in such situations.
Prospect Of Inspection
If you wait for your auto insurance policy to expire before renewing it, then you also face the prospect of your car passing through the time-consuming process of inspection before a new policy can be issued in your name. For this to happen, an official would visit your home, carrying out a thorough examination of your vehicle. Based on the report of the assessment, a new policy is issued. These processes are tedious, time-consuming, and inconvenient.
Whenever you want to renew your auto insurance policy, your insurance company will ask you whether your earlier policy has expired or not. It is mainly to determine your new premium. If you’re the type that renews your policy before it expires, you can quickly get lower premiums. But, if you wait to renew after the policy’s expiration, you probably would be charged a higher premium.
Loss of No Claim Bonus
Insurers give a No Claim Bonus (NCB) as a bonus for safe driving. If you manage not to make any claim throughout the policy year, you get an NCB during subsequent renewal. It can be accrued over the years, and it can rise to 50% of your total pay for not making any claim for five successive years. However, a discount will be given if your auto insurance policy is renewed on time.
The quick renewal of your auto insurance is vital because of legal and financial implications. So, be very fast with the renewal of your auto insurance.