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The Difference Between

What is the difference between insurance reinstatement and insurance renewal?

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2011-06-01 17:07:26
2011-06-01 17:07:26

Reinstatement means the policy LAPSED and is now back in force. Renewal just means you paid the regular bill on time.

Renewal is when the company offers to RENEW, or CONTINUE, your insurance policy for another 6 or 12 months. REINSTATEMENT is totally different: Reinstatement means that your policy is being put back in force by the company after it had cancelled for non premium payment. The main difference between the two is this: With a reinstatement, you will not have had any coverage during the time from when the policy cancelled, to when it is reinstated. If you had an accident or claim during that time, you would NOT have any coverage. Also, if you had been driving during that time you would have been driving illegally, if your state requires mandatory insurance.

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Usually not. However, insurance companies can charge late or reinstatement fees if you pay late.

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No such profession. There are only insurance brokers. These will handle renewal of insurance.

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By paying your renewal premia, your life insurance is automatically renewed. When a policy lapses due to non payment of premia, there is provision for renewal of policy by paying penal interest and by submitting 'Declaration of Good Health' form.

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It should if your insurance company finds out about it before your renewal.

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Insurance policy is a contract in utmost good faith between a customer and a service provider wherein the customer is obliged to pay an agreed premium in lieu of which the service provider e.g. the Insurance Company will cover life and/or movable/immovable properties against unforeseen eventualities. Whereas insurance policy remarket is a different scenario. In this case, the Insurance Company wish to remarket a policy withdrawn in the past, in new form and outlook with new features/incentives embedded therein.

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The best way to find a decent renewal policy is to compare prices from at least three reputable insurance companies. There are several online sites that make the process easy.

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It relates to the time period before an insurance policy for instance runs out....you usually get 2-4 weeks, to pay your renewal sum The renewal period of a life insurance policy falls due on quarterly,half yearly or yearly intervals,though a grace period of 30 days is allowed. Where as in medial insurance, renewal period is calculated 12 months from the date of inception. Here renewal date is vital since it can not be extended by any means and the policy will face unwarranted lapsing. It is advisable to renew the medical insurance policy at least before 7/10 days to be in the safer side.

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Don't know wher you are from but in Texas, you need proof of insurance and the renewal papers you got in the mail or the tag number + the cost of renewal

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anytime, but you penalize so best wait till renewal

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It depends on what company you are with. Most company's allow you to renew your insurance online. And can pay it by credit card.

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Yes. Non Payment of premium can cause a cancellation or non renewal of an insurance policy.

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online renewal of policy does not require physical inspection of the vehicle. Buy Two Wheelar Insurance Policy:

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because in the renewal the rate will probably increase

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I assume that you are meaning the term of insurance is coming up to the end of the policy period. This would be the time that the insurance company will send out either a renewal notice offering you a new term of insurance or a non-renewal notice letting you know that they are not interested in renewing your policy and the reason for doing so. If you receive a non-renewal notice it must be sent to you within a required notice time period such as 60 days. This time period will be set by the regulations of the state, province, or country that regulated the insurance in your area.

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If you are named as Certificate Holder on a Certificate of Insurance, the insurance company MAY or (in some instances) HAS TO notify you if the policy cancels prior to the renewal date.

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If the insurance company runs your motor vehicle report before renewal, it might increase. You would have to check with your insurance agent for a better idea.

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Depreciation refers to the reduction in value of an item after some time. On the other hand, depletion is the exhaustion of materials that might not have a way of renewal.

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Yes, They can and sometimes do issue a notice of non-renewal. It happens.

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Insurance is purchased for a specific period of time, which is usually a month, a quarter, or a year. When the time period is over, the insurance will lapse unless you renew it by paying for another period of time.

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A motor accident claim will make one's insurance premiums go up. Most insurance companies will do this at the time of renewal though.

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You can get licence for both life and general business from IRDA for which you are to apply at the time of opting for fresh licence and/or at the time of renewal.

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The DMV (Department of Motor Vehicle) does not notify your insurance company, however, the information becomes accessible to your insurance company through your MVR (motor vehicle record). Your car insurance company has the right to pull your MVR prior to your car insurance renewal and to give you a higher rate because of this. Not all companies pull MVRs every renewal because it does cost money.

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If the judgement has any adverse comment on the agent's moral conduct, there is no legal bar in persuing renewal of life insurance license.

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In every state I am aware of, the insurance company sends you an offer to renew and a bill. If you don't pay it there is not a cancellation that is required to be sent out after that. Most companies send you more than one billing but they are not required to and you cannot blame the insurance company for this error. The renewal is the only time that you do no have a period of time after the payment due date. The renewal is also the only period that the company is not required to send you a cancellation notice with a cancel date on it because the renewal date is your cancellation date.


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