Be Money Aware

Purchasing a car insurance policy has become a necessity, especially if you live in a metro city where accidents are on the rise. Without insurance, you are exposed to a great amount of risk every time you are behind the wheel. These risks can cost you a huge financial loss if there is a road mishap. This, among many other reasons, is why you should never allow your car insurance policy to lapse.

Car Insurance renewal is an easy process and wouldn’t take you too much time if you buy car insurance online. So, do not worry about missing out on payments because they also come with an automatic payment feature as well. Below are some of the dangers of letting your car insurance coverage lapse.

1. Accident with No Insurance

One of the major risks involved with not having car insurance is if you are involved in an accident and it happens to be your fault. If you have third-party insurance which provides cover to the people in the other car this could be of great help. If the ‘tort system’ is used in the state that you live in then you could suffer an incredible amount of financial risk if you are found guilty.

2. Loss of Personal Injury Protection

If you have allowed your car insurance policy to lapse and you have not renewed it, you will lose your Personal Injury Protection Coverage in case you meet with an accident and sustain injuries. With a comprehensive policy, you will be provided cover for yourself as well as the person in the other car. This would include medical treatment, lost wages etc. So, it’s very important that you always renew your car insurance policy for maximum coverage benefits.

3. No Coverage for Family Members and Dependents

It’s important to keep in mind that if you allow your car insurance coverage to lapse, you will also lose coverage for your family members and dependents who are inside the car. For instance, if a person driving the car is without a personal car insurance cover then other passengers will lose their coverage in case of an accident. Worse, if the people in the car aren’t your family members, they could end up suing you for damages and this could lead to additional financial costs as well.

4. Additional Fines and Penalties

Additional fines and penalties are another reason to ensure you keep your car insurance up-to-date. Most cities and states have their own laws and bylaws, so if you are caught with an expired car insurance policy, you would have to pay penalties and fines.

5. Loss of Discounts

If you let your car insurance lapse, you could even lose discounts that you have earned with an insurance policy. This would also include higher reinsurance costs when you renew your policy. NCB is valid for 90 days after the expiry of policy (subject to inspection of the vehicle).

Letting your car insurance lapse is of no good and you will be the only one losing out. From being unprotected in road mishaps to being at high risk of criminal charges and lawsuits, it’s only best that you always keep your car insurance policy always up-to-date.

There are many insurance companies that have car insurance online that make renewing your insurance policy so much easier. Talk to your insurance provider to see the best options that help you to choose the best car insurance policy.