Why you shouldn’t let your motor insurance lapse

Never let the Motor Insurance lapse. The risks are higher than you can imagine.

A lapse in motor insurance cover can have serious implications, and more often than not, it is you, the policyholder, who ends up bearing the brunt of it. Take a very common scenario for instance. You, through no fault of your own, get involved in an accident, that too with a lapsed vehicle insurance policy. As such, you can very well be held liable for the accident and hence invite legal proceedings against you.

Follow the rules, and take motor insurance payment seriously.

As per the Motor Vehicles Act, 1988, it is always mandatory to have a copy of your active motor insurance policy in hand while driving. If you are found without it, it is deemed as an offense which can attract a hefty penalty. Since the past few years, the authorities have indeed become very strict on this, which further emphasizes the need to ensure that your motor insurance policy is in force.

Therefore, it is always advisable to pay the premium on time, year on year. You can always tweak the components mentioned in the policy on an annual basis, but there should never be any gap while paying premiums which might lead to a lapse in the policy.

What are the implications of it?

You are deemed high risk

If you allow your motor insurance policy to lapse, you are considered to be a high-risk person while going for a revised insurance policy from a different company. This is because there is a gap between the term of the policy, and that’s something which is not taken lightly by the insurance provider. In such a case, you will end up paying a higher premium than before.

The renewal process will require vehicle survey

It may not sound like much, but it is actually a pretty tedious process. From the time when the survey is scheduled to the actual vehicle inspection and the policy issuance that follows, it can take quite a while, all of which translates to further inconvenience for you.

You’ll have to bear the liabilities of an accident from your own pocket

Needless to say, if you were to have an accident with a lapsed motor insurance policy, the loss you’ll suffer is two-fold: -

  • You’ll be liable for paying the third party if you were at fault.
  • You’ll also have to pay for the repair of your vehicle.

In this day and age where you have access to purchasing and renewing your motor insurance online, get reminders and set auto-deduction of premium from your account; it is essential that you never let your motor insurance policy lapse. Be proactive about keeping it up to date, because the risks of not having an active motor insurance policy are greater than you might think.

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