My car’s insurance expired while I was abroad. Can I renew my policy with the same coverage?

My Honda City’s insurance expired while I was abroad. I want to renew it without losing the benefits and coverage I had before. How can I proceed to renew my policy with the same coverage, and what steps should I take to ensure a seamless renewal process? 

Reply by Rakesh Jain, CEO of Reliance General Insurance 

It is pertinent to pay your car insurance premium on time for continued coverage, even when your car is not being driven. However, to deal with an expired policy, you should first contact the insurance company and share your policy details with them. Before the renewal process, your car might have to undergo a Break-in inspection. This process has become extremely seamless via mobile applications from insurance firms, followed by a quick renewal. 

You should also explore and discuss benefits and coverage you held before your policy expired, which will provide clear communication to your insurance representative about what you might be looking for in the renewal process. For the future, it is always advisable to set payment reminders for a seamless renewal of your policy. 

Besides, you must timely renew your policy. For instance, don’t forget your expiration date. Insurance policies typically run for a year. As the policy expiration date draws near, you should receive a notice from your insurer. It's crucial to start the renewal process as early as possible. Insurance companies generally suggest starting renewal procedures about a month ahead. 

Secondly, evaluate your coverage needs. Reflect on whether your current policy has adequately met your needs over the past term. This is your opportunity to re-assess and consider if you need to adjust your premium, deducible, or add-ons, like rental car or roadside assistance. Has there been a change in your car's use or your driving habits? Are there any newly licensed drivers in n your household? All these factors can affect your coverage needs. 

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Then, check the price and negotiate. It is a good idea to utilise the renewal period to comparison shop and ensure you’re getting the best deal. Look at other comparable insurance plans and use these as leverage to negotiate with your current company. Remember to factor in customer service and company reputation, not just the price. 

Finally, make your payments on time. After the renewal process, adhering to payment deadline is essential. Missing your premium payment may lead to policy cancellation or lapse, leaving you unprotected and potentially leading to higher costs in the future. 

 (Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)