How Long Do You Have To Insure a New Car

Any car insurance policy is not valid for life. It comes with an expiration date. In the case of most policies, the expiration date is one year from the purchase of the plan. However, no matter what a policy’s term is, it will have a fixed expiration date. An expired policy essentially means termination of coverage. Therefore, in order for you to continue enjoying insurance coverage, you need to renew the policy at the end of each term. Here’s why the timely renewal of four wheeler insurance is important:

  • Mandatory 

The mandatory nature of car insurance is emphasized in many cases. First-time car buyers often hear that buying a car insurance policy is a good thing from a legal standpoint. But, as important as buying a policy is, renewal of car insurance is equally important. You cannot simply just buy the policy once and assume that you have bought lifelong coverage. If you want uninterrupted coverage, you need to renew the policy at the end of each term. *

  • Avoid legal issues 

When it comes to legal issues, driving with an expired four-wheeler insurance plan is no better than driving without a four-wheeler plan. When a traffic police officer stops you, he does not just check if you have a policy, he checks whether you have a valid policy. The policy should be valid to avoid legal issues. If found without a valid insurance policy, you would have to pay a hefty fine. In the case of repeat offences, you might also have to face imprisonment. 

It is advisable to go for car insurance renewal a few weeks before the expiration date. Unfortunately, if your car insurance expires and you only find out about it when a police officer catches you, you will have no way of saving yourself from the penalty. *

  • Avoid financial liability

If your car is involved in an accident and causes damage to a third party, it is problematic not to renew the third-party liability component of your car insurance plan. In such a case, if the policy is not renewed, the insurance company will not be liable to cover you for your financial and legal liabilities. This means you have to handle third party liability on your own. Depending on the physical harm or property damage to the third-party, the money you would have to pay as compensation could be too much to bear. Hence, you should make sure that you buy and renew third party car insurance online at the earliest. *

  • No own damage protection 

Failure to renew the own damage component of a four-wheeler insurance policy will result in the car being left in a tricky situation. Since the car cover has expired, you will have to settle the garage bill yourself without the involvement of the insurance company. This means that you will have to either arrange a large sum of money to repair your car or you would have to hold off on repairing your car. *

* Standard T&C Apply

The above reasons make it imperative for you and your vehicle to be equipped with a valid car insurance policy by undertaking timely renewals. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.