While cars have gained importance in our daily lives, you cannot drive a car in India without owning at least a third-party car insurance policy, as it is legally mandatory. Therefore, car insurance renewal on time is required so that the policy stays active.
Despite having a car policy, you may forget about renewing the policy on time because of unavoidable circumstances that may lead to policy expiry. In such a case, you can still pay for your car policy and renew it within a timeframe known as the break-in period.
What is a Break-in Period in Car Insurance?
The break-in period in car insurance is the time period that lies between the car policy’s expiry date and the date for renewing your car policy. It is applicable to both third-party and own-damage insurance policies.
However, your car policy will not be active during this period. Generally, the break-in period is also called the grace period, and lasts for 30 days.
Car Insurance Break-in Period – Things to Know
- Regarding No Claim Bonus – Your discounts, including the NCB discount, remain intact during the break-in period. Just because your policy period has expired does not mean that you will lose out on your discounts.
However, if you fail to renew your policy during this timeframe, you will lose your discounts and your policy will also lapse.
- Regarding Claims – During the break-in period for a new car or an old car, you cannot make any claims until you renew your policy.
- Regarding Compensation – Since you cannot file a claim during this period, you will have to pay for any car repair work. Your insurer will provide no compensation during this period.
If you want to continue enjoying the coverage benefits of your insurance policy you should not wait for the break-in period for renewing your policy. Opting for car insurance renewal after expiry will only lead to lapse of your existing policy, and you will have to again invest in a new policy.
What Happens When You Fail to Renew Your Car Policy During the Break-in Period?
If you are unable to renew your car policy within the 30-day break-in period, you will have to lose your policy as it will lapse after this timeframe. Then, you will have to purchase a new car insurance policy This would also mean that you will be at risk of getting penalised for not owning a car policy.
Conclusion
It is important that you renew your car policy before its expiry. If you fail to do so, you will not only put yourself at financial risk, but you will also become legally liable for punishment, as driving without a car policy is illegal in India. If you somehow forget to renew your car policy before its expiry date, make full use of the break-in period for policy renewal.
Leave a Comment
You must be logged in to post a comment.