Suppose you get into a car accident and suffer significant injuries or wreck your car.
Of course, your first instinct would be to file for a motor insurance claim.
But wait!
If your insurance renewal is still pending, your claim will be rejected outright.
That’s right!
Even if you still have a few days left from the grace period, you’re treated as uninsured from the day your initial policy expires.
Renewing your car insurance on time is absolutely necessary, and here are some good reasons why that’s so!
Driving Without A Valid Car Insurance Is Illegal
Car insurance is compulsory under the law in every state of America. Most states impose heavy penalties on drivers found driving a car without insurance.
If you’re caught driving a car while your car insurance has expired, you’ll be charged as if you have no car insurance.
Let’s take a look at the penalties that could follow.
- If much time has not lapsed since the insurance expiry, you might have to pay a small fine
- You’ll get a ticket from the authorities, and your record will show the offense permanently.
- Your driving license and vehicle registration can be suspended for a few years.
Penalties in some states are rather severe. For instance, in Texas, you will have to pay more than a thousand dollars as a penalty for a first-time offense. You might end up paying more than the cost of cheap car insurance in Texas.
Timely Renewal Means Continued Coverage
In some states, only mild penalties may be imposed for default if your auto insurance is renewed within a few days of lapsing. That means you get a few days, usually 30 days, as a grace period for the renewal.
But that doesn’t mean, you’ll be better off postponing the policy renewal until the last day of the grace period.
Remember, your insurance company may not cover damages if you get into an accident if your policy is not renewed before expiry.
You Can Be Held Financially Liable To Third Party
Your car insurance covers any financial liability if you’re involved in a car accident causing damage or injury to the other person. If your car insurance is pending renewal and you end up in a road accident, you will have to pay for third-party damages from your pocket.
The reason is simple. Until you renew the insurance, you don’t have any insurance coverage.
You May Have To Pay More As Insurance Premium
Making repeated defaults in renewing your car insurance policy is a practice you should avoid at all costs.
You may always come clean by using the grace time for renewal, but it will impact your track record for sure.
You might have to pay for it by incurring a hike in the premium payable to the company after renewal.
On-Time Renewal Is A Breeze
Renewing your policy on time is effortless. You pay the fees on or before the due date and the insurance company acknowledges the renewal, no questions asked.
But if you let the policy lapse, the insurance company may impose several formalities before accepting your renewal application. You might also be called for a car inspection.
You can avoid all such unnecessary hassle by being punctual in renewing your car insurance.
In most cases, a car insurance policy becomes due for renewal once every six months.
Your insurance provider would usually arrange for a reminder with all the renewal information a month before the due date.
Pay attention to the mail and mark a reminder on your calendar. It’s only good for you to renew the policy on time – quick, easy and worth it!
