Do I Need to Retroactively Purchase Auto Insurance If I Didn't Buy It for a Year?
2 Answers
If you didn't purchase auto insurance for one year, you don't need to retroactively buy it the next year. Introduction to Compulsory Traffic Insurance (CTI): It compensates for personal injuries, deaths, and property losses caused by the insured vehicle in road traffic accidents (excluding passengers in the vehicle and the insured) within the liability limits. Introduction to Third-Party Liability Insurance: It covers compensation for accidental incidents during vehicle use that result in personal injuries, deaths, or direct property losses to third parties. It compensates for the amount the insured is legally obligated to pay, covering the portion that exceeds the sub-limits of CTI. Introduction to Passenger Liability Insurance: It covers compensation for accidental incidents during vehicle use that cause personal injuries to passengers. The insurer compensates for the amount the insured is legally obligated to pay, after deducting the compensation that should be paid by CTI.
I just went through the insurance policy, and you really don't need to backpay for car insurance. Think about it - not having coverage last year meant driving uninsured for a year, and you can just buy a new policy this year. But there are two things to note: first, during vehicle inspection they might ask for last year's policy, but as long as you have a new one this year it's fine; second, your premium discount might be affected. Like with our family's SUV, when we didn't renew the policy the year before last, the insurance company said the discount would restart when we bought it again the next year. If your car won't be used for a long time, it's actually more cost-effective to apply for a suspension of registration - my buddy did this and saved over three thousand.
