Your car insurance has lapsed: what to do
Short answer
Do not drive the car until it has at least third-party cover, because driving uninsured is an offence. Renew as soon as you can. After a lapse the insurer may want to inspect the car first, and a comprehensive policy left lapsed for long enough loses its no claim bonus. Ask your insurer what applies to yours.
Is it illegal to drive with an expired policy?
Yes. Third-party insurance is a legal requirement under the Motor Vehicles Act, 1988, and IRDAI's handbook says that driving a motor vehicle without insurance in a public place is a punishable offence. So the first rule after a lapse is simple: keep the car off the road until it is insured again, at least for third-party risk.
What if something happens during the lapse?
The insurer owes you nothing for a loss that happens while there is no policy, so your own car's damage or theft is yours to bear. The car's owner is also legally liable for injury or damage to third parties, and with no policy that liability falls on you personally. That is the real cost of a gap, and it is more than the premium you saved.
What happens when I renew after a lapse?
- The car may need an inspection. IRDAI's handbook says that after a break in insurance, even a short one, the vehicle has to be inspected, and extra charges may apply. Insurers handle this differently, so ask yours what it needs.
- Your no claim bonus may be lost. A comprehensive policy left to lapse for long enough loses its accrued bonus. The length of time is in your policy wording.
How do I restart cover?
- Contact your insurer, or us, and say the policy has lapsed and how long ago.
- Get the inspection done if the insurer asks for one.
- Compare your options. You can renew with the same insurer or move to another. If you move, your no claim bonus can come with you, if you still have it and can prove it. See our no claim bonus guide.
- Pay the premium and get the new certificate of insurance, and keep it in the car.
How do I stop it happening again?
- Note your renewal date and set a reminder well before it. IRDAI's handbook says the policy is usually valid for one year, and that the due date is the due date.
- Renew before the policy ends, not after.
- If your phone number or address changes, tell your insurer so that notices reach you.
- Ask us to track it. We keep track of your renewal date for you.
Questions about lapsed car insurance
Is there a grace period after the policy ends?
IRDAI's motor insurance handbook says insurers do not give a grace period for paying the premium: the due date is the due date. Check your policy and ask your insurer, and do not plan around a grace period.
Do I have to get the car inspected after a lapse?
IRDAI's handbook says a break in insurance means the vehicle has to be inspected. What your insurer requires and charges is for the insurer to tell you.
Will I lose my no claim bonus?
You can, if a comprehensive policy is left to lapse for long enough. The period is in the policy wording. Renewing quickly is the best way to protect it.
My policy was bought somewhere else. Can you still help me renew?
Yes. Send us your current policy and we will compare renewal options across the insurers we work with. Your no claim bonus comes with you if you switch and can prove it.
Sources
- Handbook on Motor Insurance, Insurance Regulatory and Development Authority of India
- Motor insurance, IRDAI policyholder pages
Renewal conditions, inspection and the no claim bonus are as per each insurer's policy wording. This guide is general information.
Related services
More guides
- What happens to your no claim bonus when you sell or change your carWhat happens to your car insurance no claim bonus (NCB) when you sell your car, buy a new one or switch insurer, and how you can lose it.
- Third-party or comprehensive car insurance: which one, and whyThird-party or comprehensive car insurance in India: what each pays for, what IDV and deductible mean, and how to compare two quotes properly.
Talk to an advisor in Jodhpur
This guide is general information. For your own car, loan or policy, send one message on WhatsApp with what you need and you will get an answer from an advisor, not a call centre.