It will not be wrong to assume that being without car insurance is losing one’s peace of mind. The owner needs to pay for any damage caused to or because of their car before understanding the consequences of not having car insurance.
car insurance policy. There could be multiple reasons why you wish to cancel your car insurance policy. They could include the death of the owner or not being satisfied with the insurer’s services. In any case, it is possible to cancel the current car insurance policy. However, if you want to cancel a policy because it feels like an added expense, you are making yourself vulnerable to direct financial losses arising from mishaps.
What Happens If You Cancel Your Insurance Policy for a Car?
A car insurance policy provides a host of benefits. The value of these benefits is so high that it cannot be compared to the cost you pay to get an insurance policy for a car. Here is what will happen if you opt-out of car insurance:
Third-party Car Insurance policy is against the law. You cannot ply on Indian roads without car insurance. A car insurance policy is one of the documents you always need to have while driving your car. If you are found without car insurance, you will be fined Rs. 1000 and three years of imprisonment.
You Compensate the Third Parties
The logic behind making car insurance compulsory is the fair compensation of any third parties affected by your vehicle. The pdon’tyet amount is calculated basis on the financial status and age of the affected third party. So, if your car hits a rich guy, and you do not have car insurance, you will have to pay an unimaginable price as compensation for repairs and the treatment of his injuries! If you don’t have car insurance, you will have to pay paymenttion from your pocket.
No Compensation for Theft
A Comprehensive Car insurance policy ensures that you are covered against the theft of your car. This means your insurer will pay the Insured Declared Value (IDV), i.e., an approximate market value of your vehicle if it is stolen. With no insurance policy in force, you would bear a loss of the entire value of your vehiccarCompensation Against Calamities
Apart from theft coverage, a Comprehensive Car Insurance Policy also offers cover against natural or artificial calamities. Thus, your car is financially covered against earthquakes, floods, riots, vandalism, landslides, etc. You cannot raise a compensation claim if you face any of these without a car insurance policy.
You Pay for Your Injuries
Any car insurance policy compensates the policyholder for personal injuries while driving the insured car. This is a helpful cover in accidents and emergencies where the owner is injured. Without a body, one must go through the hassle of paying the hospitalization charges.
You Pay to Get Your Car Repaired
With a Comprehensive Car Insurance Policy, your insurer will pay for the cost of repairing the insured car in case it is damaged. Without the policy, you need to pay this cost no matter how high.
The Bottom Line
As mentioned earlier, there could be many situations where one must cancel a car insurance policy. However, buying a new car insurance policy is important as soon as you cancel the old one. Also, check with your insurer if you can get a refund for your existing policy and continue to avail of the No Claim Bonus with the new car insurance policy. Remember that insurance ensures minimum financial losses.