Sometimes, we forget to renew our motor insurance policy, due to our busy schedules. However, a few individuals also tend to deliberately renew their policy late, as it would save them a little money. However, this should never be case.
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You will end-up losing your no claim bonus
No Claim Bonus (NCB) is the amount of discount that you get on insurance premium payable, if you have made no claims during the year on accidents and repairs to your vehicle. This varies and can be anywhere between 20-25 per cent. In fact, it can go even as high as 40-50 per cent.
Now, if you do not renew your motor insurance policy on time, you would lose in terms of no claim bonus.
Generally, you should renew your policy within 90 days from an insurance lapse to avail of NCB.
Process gets slightly more complicated
If you are opting for a comprehensive motor insurance, you may have to undergo the entire process of applying for a new insurance, if your vehicle motor insurance has lapsed. It is far easier to renew an insurance policy that has not lapsed, through just the click of a mouse. In fact, it is as good as making an application for a new motor vehicle insurance.
Severe financial loss in case of accidents
In case you have not renewed your motor insurance policy and there is an accident, the entire financial liability will rest on you. In fact, if there is a major accident, including loss of life, the financial and mental agony could be tremendous. There's no question of being reimbursed on a lapsed motor insurance policy.
It's not worth taking the risk when it comes to timely insurance of your motor insurance policy. These days most of the insurance companies send SMS and Email to remind individuals. In fact, in variably there will be calls to renew your vehicle insurance on time.
Most of the company executives will make a call at least a fortnight in advance. You can also set reminders to ensure that you pay your motor insurance policy on time. Of course, you should never deliberately delay in order to save money. It is not worth the money, in case there is an eventuality.