What Are the Consequences of a Car Losing Insurance Coverage?
2 Answers
There are several consequences when a car loses insurance coverage: Occurrence of an Insured Event: If an insured event occurs during the period when the car is uninsured, the insurance company will not bear any liability for claims. Being Penalized While Driving: If the compulsory traffic insurance (CTI) is lapsed and the owner is caught driving by traffic authorities, they will be fined twice the CTI premium and have their vehicle temporarily impounded. Inability to Pass Annual Inspection: If the CTI is lapsed, the car will not be able to undergo its annual inspection. Slight Increase in Premium: If the car remains uninsured for too long, the owner may face a slight increase in premiums when renewing the insurance.
As a seasoned driver with over a decade of experience, let me share my personal experience with the consequences of insurance lapse. Last year, I was too busy with work and forgot to renew my car insurance. Right after it expired, I got pulled over by traffic police and was fined over 1,000 yuan plus penalty points - it really hurt at the time. Even worse, I almost rear-ended someone on my way home from work once. Luckily I braked in time, but just imagine if there had been an accident - I'd have had to pay for both my own car repairs and the other party's damages out of pocket. The costs would have been enormous. When I went to renew later, the insurer said my lapse record was bad and raised my premium by nearly 30% compared to before - the savings weren't worth it at all. Now I've learned my lesson - I set a renewal reminder on my phone. Never try to save small money on something this important, because if something goes wrong, the risks far exceed what you might imagine. Oh, and this can also affect your vehicle's annual inspection - if you delay too long, you might even lose your license plate. What a profound lesson this was.
