Reasons why your car insurance could be invalid?

livemint.com:

car insurance claim rejection. Insurance usually works in good faith and intends to be beneficial for the insurance holder. However, if the insurance provider detects any fraudulent claim on the policyholder's part, it will automatically lead to claim rejection.

Moreover, there is also a possibility of facing pressing legal charges if the insurance company decides to sue. Under certain specific circumstances, the concerned vehicle must undergo a test of fitment and eligibility. Certain insurance companies insist on taking this test before making a policy purchase.

Car inspection may also be required during plan renewal. This inspection is done by insurance authorities and tested to meet certain typical measures. Punctual premium payments are critical to ensure uninterrupted policy coverage.

There is typically a grace period for the benefit of the policyholder. However, if you skip even the grace period, you experience a policy lapse. If you raise any claim after the policy lapses, it will stand null and void.

So, considering the current scenario, any claim raised for that insurance plan will automatically be rejected. Most people tend to forget the plan renewal due date. This eventually leads to plan lapse.

You cannot raise any claim for a lapsed plan. Therefore, it is essential to keep your plan valid before you raise any claim. You have to ensure the due date and the grace period so that you do not miss the opportunity of plan continuity.

In case your comprehensive plan lapses, you tend to lose on your accumulated NCB benefits, if applicable. Several vehicle owners seek to install certain modifications, which can be either functional or cosmetic. It can be certain fancy lights or alarms.