What If Motorcycle Insurance Is not Renewed? (Explained)

Third-party two-wheeler insurance is required by law in the US. This is regulated by the Federal Agency, the National Highway Traffic Safety Administration (NHTSA), Department of Transportation, USA, which was set up by the Highway Safety Act of 1970.

This insurance policy covers any damage to your two-wheeler and the liabilities of the insured third party also, which may include the losses caused by theft, calamities, or fire.

But if you get hurt by a rider who doesn’t have insurance, that rider has to pay for your medical bills.

The Motor Vehicles Act, 1988 mandates every two-wheeler owner to insure his or her motorcycle to keep it from law infringement and pay hefty penalties.  

Development of Automated Technologies

A majority of the vehicles plying on the road today have rider assistance technologies designed to help save lives and keep from injuries on the roads.

On one hand, some of these technologies are designed with the intent of warning you if you are at the risk of an imminent crash, and on the other hand, some are designed to act upon in order to thwart accidents. 

Consequences of Non-Renewal of Motorcycle Insurance

It’s possible that you won’t be eligible for some advantages if you don’t have a coverage for your two-wheeler insurance.

If you don’t have the insurance policy renewed, the grace period ends, which is typically 30 days, after which it will result in policy lapse.

That is to say, it is a lapsed two-wheeler insurance. If your policy remains in the lapsed state for more than 90 days, you will not only pay penalties but also forfeit the benefit of no-claim bonus that you may have accumulated over time.

The biggest disadvantage is that claims made after the expiry date are repudiated. So, now you know why it is important to renew your two-wheeler insurance policy in a timely manner. 

How do I check if my insurance policy is still active or not at any given point in time?

You can find out whether your insurance policy has lapsed or expired by visiting the insurance company’s web portal.

By just entering the policy number and your DOB, you can find out the status, and if it is expired, the portal will alert you to renew it. Simply click on the RENEW option and renew it.

How to Renew Motorcycle Insurance if Expired?

You can have your expired two-wheeler insurance policy renewed either offline or online.

You can contact the insurance company and talk to an agent over the phone or just visit the website of the insurance company.

In case of the personal visit to the insurance company’s branch, you pay the renewal amount and attest the stated supporting documents pertaining to your two-wheeler insurance policy.

The insurance agent will renew the policy after verifying the application and documents.

This method is meant for people who are not comfortable with using the internet or web-enabled devices, including PCs, laptops, and smartphones.

The easier and quicker way is doing it online. The online procedure to renew a motorcycle insurance policy is fairly simple for almost any insurance company, which involves only the following three steps:

  • Visit the insurance company’s website either on your computer through a web browser or install the application on your mobile phone.
  • Enter the required details, including your full name, the policy number, and your date of birth (DOB).
  • Make the payment on their payment gateway through debit card, credit card, or electronic transfers.

Reinstating Lapsed Policies

It is imperative to factor in that lapsed policies can’t be renewed after ninety days with ease.

It is a lengthy, time-consuming process. In such cases, you ought to go back to the drawing board – choose the new insurer, get a new two-wheeler insurance policy, have your vehicle inspected by a surveyor, and go through the documentation formalities again.

You might be required to re-attest the documents, including the registration certificate, renewal notification sent by the previous insurer, and rider’s license.

Most importantly, the premiums you have paid so far will go in vain as you lose the NCB (No-claim Bonus), which is a discount for not making any claim and for innocuous riding. In the insurance policy’s lapse state, you can’t claim that benefit.

Parties Involved in Motorcycle Insurance?

Buying a motorcycle insurance policy encourages you to be cognizant of different terminologies related to it so you can choose the right plan for your two wheeler.

Out of these, it is essential for you to be aware of first-, second-, and third-parties, and how they are connected with the insurance policy.

First Party:

First party refers to the person who takes the insurance policy and pays the recurring premium in order to be entitled for the benefits and restitutions covered in the two-wheeler insurance policy.

Nevertheless, the term First-party Two-wheeler Insurance refers to the type of insurance policy that offers out-and-out coverage against the damages suffered by your motorcycle.

The first-party two-wheeler insurance policy typically includes damages due to natural calamities (act of God), theft, man-made damages, and total loss. 

Second Party:

Second party refers to the party that is responsible for offering the insurance coverage (the company that you have taken the insurance policy from).

Third Party:

Third party refers to the person other than the above two parties. He or she can be any one who raises a claim against your insured two wheeler that has caused damage to their property or caused any injuries or death.

However, the term Third-party Two-wheeler Insurance refers to the type of insurance policy that covers third-party liabilities. In third-party insurance policy, three parties are involved – first, second, and third.

Easy Checklist

If you renew the policy for a future period, while the policy is still valid, you are doing great! You continue to benefit from the cover.

Don’t wait till the insurance policy expires.

However, there are a few things you should factor in while renewing your two-wheeler insurance policy to check if you have opted for the correct plan with necessary add-ons. Here’s the list of three:

1. Verify the Insurance Coverage

Some people can’t wrap their head around how their insurance plan works, what they can offer, etc., while, although some people would have taken an ephemeral mental note about the insurance coverage when the rep was touting the company’s plans, they remember nothing about the package, what they are entitled for, what they can claim, etc. after months.

So, it is important that you get a thorough understanding of your plan, before renewing it.

You should be laid back after taking a policy, with confidence that your insurer will take care of everything, but you should know what you have opted for.

2. Remove a Coverage or Include a Top-Up Coverage

It is often possible that you were either not aware about a few lucrative add-ons or they were not available at the time you signed in for a plan. Moreover, the availability of vehicle insurance add-ons varies from one insurance company to another.

Make sure that you are cognizant of the add-ons your insurer offers and whether you had missed any of them during the sign up.

The common add-ons most insurer’s offer include zero depreciation cover, consumables cover, roadside assistance cover, key loss cover, passenger assistance cover, engine safe cover, loss of personal belongings cover, protection of NCB, and tire damage cover.

Choose the best add-ons that suit your needs at the time of renewing your motorcycle insurance policy. Note, the two-wheeler insurance add-ons are available for an extra premium, but are worthwhile since they notably upgrade the coverage of your two wheeler. 

3. Repeated Visits to the Terms & Conditions

Insurance companies might make changes in their terms & conditions time and again, so it is recommended that you at least take a cursory look occasionally to check the latest terms in the insurance policies.

The new terms & conditions, if any, will jump out at you.

Wrapping Up

You should now have a better understanding of the significance of maintaining current insurance coverage for your motorcycle after reading this article.

If you let your motorbike insurance policy lapse, you put yourself at risk of incurring penalties and losing out on crucial benefits. Therefore, you should always be sure to renew it as soon as it runs out of coverage.