What Happens When Your Car Insurance Expires and What to Do Next?

It is quite common for people to miss paying monthly utility bills, loans, and mortgages because there are simply too many due dates to remember. It is also normal if you even forget to renew your car insurance policy especially when it is required to do so annually.

But first… what does ‘lapse’ mean?

A lapse in car insurance policy payment simply means the policyholders stopped paying their insurance premiums after the policy has expired. However, some insurers do offer grace period for customers to renew their policy after it has expired, usually for a short period of time before they cancel the policy entirely.  

But what are the consequences of a lapsed car insurance policy?

You can’t renew your road tax

Yes, you read that right. Without a valid or in-force policy, you won’t be able to renew your road tax through JPJ. If you get caught driving your car with an expired road tax by JPJ or the police, you could be fined up to RM3,000 or be summoned to court to pay your fine.

You won’t be covered by the insurance company

If your car insurance policy has expired, it automatically disqualifies you and your vehicle from getting coverage or protection from the insurer. Hence without an in-force policy, any financial impact caused by car accidents are not claimable. This may include expenses from having to repair damages to your car, medical and hospitalization bills, and many more that could put you in financial distress.

You may cough up more in insurance premium renewal

Some people would rather save up some money by not renewing their car insurance policy. Making late payments or simply letting it lapsed could end up making you pay more. Insurer may categorize you as their high-risk customers, where the premium charged will be higher than low-risk customers.

You are driving illegally and could be fined by JPJ

Do you know it’s illegal to drive without a valid car insurance? During the lockdown period, the Ministry of Transport gave an exemption or extension period to car owners to renew their road tax and driver licenses. However, car insurance renewal is still made mandatory nationwide. Failure to do so may get you penalized under the Road Transport Act 1987, where fines could go up to RM 1,000 with a potential three years in prison.

But what should you do if your car insurance has expired for more than three months?

In Malaysia, if a car insurance policy has expired for more than three months, the policyholder may face penalties and fines for driving a vehicle without valid insurance coverage. To renew insurance coverage in this situation, take the following steps:

1. Contact your insurance company: Check the availability of renewal and the required documents by calling or visiting the insurance company.
2. Gather the following documents: Prepare all required documents, such as the vehicle registration card and driver's license.
3. Renew your coverage: Pay the premium and complete the insurance provider's renewal process.
4. Revise the road tax: Following the renewal of the insurance policy, the policyholder should also update the road tax to ensure that the vehicle is legally permitted to be driven on public roads.

To avoid penalties and ensure that the vehicle is legally covered in the event of an accident, it is crucial to renew car insurance on time.

How to avoid future lapses?

Simply by keeping close track of your car insurance renewal due date. This is where we can help!

Did you know Generali Direct offers free insurance renewal reminders for our registered members? We are serious about easing your burden by giving you a customized reminder, not only for your car insurance but also for your home, Personal Accident, and medical insurance as well. We’ll remind you at least two months before your policy expires, even if you are not a Generali Insurance Malaysia's customer!

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