Lapsed Car Insurance
Monthly beginnings can be both extremely pleasant, because you are done with all the work of the previous month, or it can be extremely chaotic because you have to deal with a lot of bills and payments. Though most people resort to auto-renewal for their regular payments, there are certain payments that we tend to leave out of that loop. One such payment is our car’s insurance premiums. These payments when missed way past their due period are called lapsed payments.
A lapsed car insurance policy can be quite risky when compared to other payments because there are quite a few repercussions that follow. The Government of India has mandated, via the Motor Vehicles Act, 1988 that every vehicle owner should have third-party insurance. Not having one can lead to heavy fines on owners of uninsured vehicles. Read further to know more about lapsed car insurance.
What happens when your car insurance lapses?
If your car insurance lapses, it can be very unfortunate for you, because you may lose out on all the accumulated benefits so far on your policy like a no-claim bonus. Also, you might have to get a new insurance policy, which will lead to vigorous vehicle inspection and can also potentially increase your policy premiums. Other repercussions include that you should be aware of:
With the infinite number of things needing our attention, it is natural for us to forget certain things. So, it will do well for us to either create effective reminders or go for an auto-renewal option when it comes to payments so as to avoid such avoidable negative consequences.
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