With the exception of a fairly new practice of issuing pay as you go car insurance policy, when you buy your car insurance to enter into, and bound by the conditions, the contract specified period of time with the auto insurance company. In most cases this term remains is exactly one year from the date of commencement of policy or the beginning.

As you near the end of the period of cover, your insurance company or tender will invite you to renew the contract. These days the system used by major auto insurance companies will trigger the update procedure which originally meant the production and posting of the same set of reforms for policyholders. This is usually the time, so invite to automatically update the package produced approximately fifteen days before the expiration of the existing automobile insurance contract, providing prospective policyholders an extension of time in accordance with the auto insurance company and inform them of any changes that may have occurred during the term of the contract are not reflected the renewal documents.

If you intend to renew with the same insurance company you are legally bound to inform the company of any changes to the statement of the fact that you originally created when you first issue a policy.
Likewise you may want to add or remove elements from the cover of the current status of automobile insurance policies, as your requirements may have changed over the previous year.

Due to the nature of compulsory third party car insurance, ‘days of grace’ is not allowed after the policy renewal date. This can cause problems for car insurance company as a document of practical purpose and renewal certificates must be produced and sent to the prospective policyholder renewal in advance, which will be operating from the first day of a new period of insurance.

Certificate renewal, required by law for motor vehicle taxes, the theory can not be issued until the renewal premium is paid. If payment is received after the expiry date of the existing car insurance policy, then the certificate must be rewritten with the operation time and date suitable to the time of payment. This can cause big problems for the auto insurance company, to issue a certificate does not change will be equivalent to the ante-dating it, which is a crime, while rewriting the renewal documents will result in additional costs and expenses for car insurance, and more importantly will leave gaps in cover for the policyholders, who will leave the drivers exposed to the risk and legal action for driving without car insurance.

In order to overcome the practical difficulties of renewal, auto insurance has developed into a document incorporating the practice of renewal of the insurance certificate valid for a period of 7-15 days. This benefits both the candidate and the renewal of the insurance companies to extend the period in which the insured has to pay a premium renewal time, but still received a certificate dated from the first day of the new contract period.

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