VirtualBox error: Kernel driver not installed (rc=-1908)

I use VirtualBox to  run a Windows 8 VM on my Mac. Something strange happened today. My Mac ran out of battery while I was working on something important on the Windows VM. I recharged my Mac and tried to restart the VM, but the VM was not booting up at all. I kept getting the following error:

VirtualBox error: Kernel driver not installed (rc=-1908)

Since the machine had not shut down gracefully, the VM seemed to have got corrupted.

After spending quite a bit of time trying to troubleshoot this problem, I was finally able to resolve it. Reinstalling VirtualBox helped resolve the issue. Obviously, I did lose all the unsaved changes, but the good part was that the VM was still intact, and it booted up just fine!

Just penning it down so that it helps someone else facing the same issue…

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