Car insurance is a must have for you to drive on the roads in most parts of the world. But purchasing your auto insurance policy doesn’t mean you should leave it at that. After all, it is an annual contract that needs renewal after the policy period expires. If you fail to renew your car insurance policy within the stipulated time, then it becomes void, and you lose the benefits.
Even though insurance companies have a grace period for policy renewal, you should never leave it late. If at all the car insurance policy is not renewed within the grace period, then the insurer rejects the application for renewal, and you might be forced to compare insurance quotes.
You might already be wondering about the consequence of a car insurance lapse. At the worst case scenario, your plea for renewal may get rejected if the gap between expiration and renewal is too high. And if your insurance company accepts the renewal application after the grace period, they may impose a hefty fine.
A car insurance lapse may also force you to apply for a new policy and restart the application process from scratch. Some insurance companies may decide to charge a higher premium amount than before, or it could result in loss of No Claim Bonus.
In the event that your policy lapses, you have to start afresh by choosing car insurance as per requirements. This is where you should consider getting multiple insurance quotes to find the cheapest possible. Once you find an insurer to leverage, it is time to have your car inspected by the insurance surveyor.
With what modern tech offers, you can now renew your car insurance online. This approach is quite fascinating since you don’t have to rely on anyone to get it done. The good news is most car insurance companies will send you reminders for renewal. Always acknowledge these reminders and get it done. If your feels like annual renewals are too much for you, then you can simply buy a long-term policy.