5 consequences of driving a car without valid car insurance

A valid Car insurance policy is one of the few essential documents that one must carry to avoid any form of liability. While purchasing a vehicle, buyers should obtain proper insurance by paying a certain amount of premium to an insurance company. They can enjoy coverage under this plan for a fixed tenure, after which the policy needs renewal. 

Driving your car with an expired insurance plan can lead to serious consequences, such as legal liabilities and you will also run the risk of losing insurance protection in case of a mishap with your car. Plus, you will also lose out on No Claim Bonus and will have to go through inspection all over again. 

Therefore, one should opt for an expired car insurance renewal online to avoid any future hassle. Thanks to smartphone-enabled processes, expired car insurance policy renewal can now be completed conveniently online and takes only a few minutes to complete. 

Female Motorist Involved In Car Accident Calling Insurance Company Or Recovery Service
Female Motorist Involved In Car Accident Calling Insurance Company Or Recovery Service

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Nevertheless, individuals failing to renew their insurance policy will face several consequences. This section mentions those outcomes in a detailed manner. 

Top 5 consequences of driving without valid car insurance

A car purchase is a lifetime investment that requires proper planning and consideration. However, driving a car without valid documents like a license and insurance can increase an owner’s financial liability. Here are some consequences an individual might face for driving a vehicle without an insurance policy:

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1. You might have to pay heavy fines

As per the Motor Vehicles Act, 1988, motorists should at least possess a valid third-party insurance plan to avoid hefty traffic fines. These fines can range up to Rs.2000 for a first-time offense and Rs.4000 for the second time. Consequently, an owner faces an additional financial burden if caught without valid insurance. Hence, it is logical to pay a minimum premium and renew an insurance policy to avoid increasing further financial obligations. 

2. Pay for losses caused to a third party

Stressed woman driver sitting on street side shocked after car accident. Road safety and insurance
Stressed woman driver sitting on street side shocked after car accident. Road safety and insurance

An accident between a car and a third party might substantially damage the latter. In such a scenario, the car owner needs to bear the costs of damages caused to a third party. One can avoid this liability by renewing a policy and opting for third-party car insurance. This insurance policy also covers litigation issues arising from such accidents. Additionally, a car owner’s liability further increases in case of a third party’s death. However, one can eliminate the chance of this liability by renewing an expired insurance policy. 

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3. Pay for own damages

Car owners should note that a third-party policy would not cover damages caused to their own cars involved in an accident. Therefore, to avoid bearing exorbitant damage repair costs, one must renew a car insurance plan and opt for a comprehensive policy. As the name suggests, this policy provides complete coverage against damages caused by natural or artificial disasters and car theft. Thus, owners can consider paying a higher premium and save their pockets from future financial losses. 

4. Legal complications

Close up diverse colleagues working on project together, working with legal documents, financial
Close up diverse colleagues working on project together, working with legal documents, financial

As the law mandates possession of a basic insurance plan, failing to do so will result in legal complications causing future hassle. Individuals caught driving without a valid insurance plan might get a challan and even face imprisonment. 

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5. No claim bonus

Another outcome of not renewing an expired policy is the loss of No Claim Bonuses. Insurers offer this bonus during policy renewal if an individual manages to maintain claim-free years within a policy term. This is a discount on the policy premium paid towards a plan. However, individuals miss out on the accumulated bonuses on failing to renew a policy within 90 days of expiry. Thus, one should consider renewing a policy to enjoy these benefits for the long term. 

To conclude, car insurance policies reduce an owner’s financial and legal liabilities. In addition, renewing an expired policy will allow an individual to continue receiving coverage benefits for a longer time. Further, it is practical to opt for insurance renewal rather than pay hefty fines and face other complications in the future. 

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