Renewal Of Motor Insurance

Suppose, it is the weekend and you have planned a road trip with your family. You are on the highway and suddenly, your car breaks down in the middle of the road. But but but! You are all calm because you know you have got a roadside assistance add-on in your motor insurance policy. You try to avail it, but the insurance company tells you that your policy has lapsed. This is when it makes you panic that you have forgotten to renew your policy and now, you have crossed the expiry date. You realise that in the absence of an active motor insurance policy, the expenses incurred on repair and retrieval of the car from the highway are now to be fully borne by you. This is the kind of financial and mental stress we hope you never have to bear in the future.

In this article, let’s understand the intricacies of Motor Insurance renewal, so that such difficult situations can be aptly avoided.

So, What Is Renewal Of Motor Insurance?

Every insurance policy comes with an expiry date. Once a gets policy expire, you are not eligible for any compensation and you cannot claim anything from the insurer in case of any accident or mishap.

To keep your car protected under the Motor Insurance policy, you need to renew your insurance. In simpler terms, Insurance Renewal is a method to extend the services of your insurance policy before it expires.

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Importance Of Motor Insurance Renewal

Here are a few reasons why you should renew your policy by the due date -

  • Car Insurance Is Legally Mandatory

    As per Motor Vehicles Act 1988, every vehicle should have a valid motor insurance policy. If you are driving a car with a lapsed policy, then you have to pay the legal penalties.

  • To Be Covered Always

    Renewing your insurance policy on time ensures you are financially protected in case your car faces any accident, theft, or damage.

  • To Avoid Buying A New Policy

    Buying a new policy is far more expensive than renewing your existing one. Also, renewal is far more convenient and saves your time.

  • To Safeguard Your No Claim Bonus

    If you have not made any claim in your previous policy tenure and you renew it on time, then you get a No Claim Bonus discount. NCB is a discount you get on your policy’s own damage premium amount at the time of renewal. Post the policy expiry, the grace period to renew the policy will be 90 days. Not renewing a policy within 90 days of the policy expiration means giving up on your NCB.

  • To Avoid Break In

    If you miss a renewal, your policy lapses. The time duration between the policy expiry date and the date of renewal is called the break-in period. Driving your car during the break-in period may lead to legal and financial implications.

  • To Avoid Inspection

    Most of the insurers require the vehicle to be inspected post the expiry date even if the policy if the renewal is delayed by a day. At the time of the inspection, any existing damages to the vehicle won’t be covered. The insurer might deny covering the existing damages or they might reject your insurance altogether and ask you to get the vehicle repaired first and then raise a renewal request again.


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What Is The Process Of Motor Insurance Renewal?

Generally, you are duly informed by your insurer when your existing insurance policy is about to get expire.

  • If you wish to renew your policy, you need to contact and inform your insurer through call or mail.

  • You need to share with your insurer all the details about the current condition of your vehicle.

  • Your insurer will analyse and inform you if any physical inspection of the car is required or not. An inspection will be required if -

    the policy is expired,or

    any addition has been made to the car which you need to insure, for instance, a newly installed CNG kit

  • If inspection is required, the insurer will ask for an appointment as per your convenience.

  • You have to coordinate with the Inspection Inspector and provide them with your car insurance documents.

  • After inspection, the insurer will share the premium amount and you will have to pay the renewal premium amount.

  • Post payment, you will receive all policy papers from your insurer.

  • If you want to switch your insurer at the time of renewal, you can contact your preferred insurer before the policy expires.

  • Some insurers might also send you a renewal link via email, SMS, or WhatsApp. You can easily renew the policy using the link.


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A lot of people avoid renewing their policies as they believe they will never get to use them. They do not give enough importance to a motor insurance policy until they face a crisis themselves. This policy plays a huge role in safeguarding you and your car against financial and legal liabilities. The way you set reminders to not miss your friends’ birthdays, it is equally important to remind yourself to renew your policy before expiration. As it is said, precaution is always better than cure.

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