What Happens If You Don’t Pay Your Car Insurance Premium?


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Don’t take your car insurance lightly, here’s a list of problems that come by doing so, including being hauled to court!

You cannot renew your road tax

Your car’s road tax and insurance usually expire at the same time, and as such you will have to renew it at the same time. However, if you do not renew or have a valid car insurance, you cannot renew your car road tax.

Without insurance and with an expired road tax, you are actually committing a traffic offence, and you can be summoned for it by Jabatan Pengangkutan Jalan (JPJ). In case you didn’t know, if you get summoned by the JPJ, you cannot pay for it at JPJ branches, instead, you will be required to go to court. Aside from JPJ, you can also be summoned by the police if you are found driving with an invalid road tax.

Your insurance will lapse

When you don’t renew your insurance or when you make late payments for your insurance, this will cause your insurance to lapse. When an insurance lapse happens, this means you are no longer covered. A lapse can happen if you forget or don’t renew your car insurance, if your car insurance provider cancels your insurance or if the insurance company goes out of business.  Make sure you have a valid car insurance at all times and don’t let there be any lapses in between.

In a nutshell, you will not have coverage

As discussed, when your insurance lapses, you will no longer be insured, and you have no coverage at all. If you get into an accident during the period that you are uninsured, things can get really messy. Firstly, you will have to bear all the costs of the damages of your own car on your own. If the accident was caused by you, you will have to pay to get the other party’s car fixed as well.

However, in the event of an accident involving severe damage or death, without an insurance, it can then become a legal case and you will be brought to court.

As you can see, the downsides of not having a valid car insurance is severe and can cause a major dent in your finances. Be smart and make sure your car insurance and road tax are valid at all times, and renew it before it expires.

See also: Tips For Buying Car Insurance

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