Having a car without insurance can put an individual’s finances at risk, especially in an accident with a third-party or if their car suffers damage from a natural disaster like flooding or natural calamities.
However, you might not remember to renew the insurance on time because of unforeseen circumstances. There is a set period of time known as the break-in car insurance or break-in period to reinstate the status of your insurance policy.
Continue reading to find out more about how your insurance coverage and premium are impacted by the term “break-in period.”
What does an insurance break-in period mean?
The time between the expiration date and the renewal date is known as the break-in period in car insurance. For instance, let’s say that on September 11th, you renew your car insurance policy, which expires on August 30th. Between the expiration date and the renewal date, your policy is inactive for ten days. This 10 days gap is called the “break-in period.”
Car insurance break-in period myths
Here are some common misconceptions about break-in insurance and how to eliminate them:
1st Myth: During the time of the break-in, one cannot renew the policy. Additionally, you might need to buy a new plan.
Truth: One can continue with the same insurance plan by renewing the policy during the break-in period. Although they can renew the policy, if they don’t do so within 90 days of the expiration date, they will forfeit benefits like the No Claim Bonus (NCB).
2nd Myth: You are allowed to make claims during the break-in period.
Truth: You are not permitted to make any claims during the period of the break-in.
3rd Myth: You can’t use the discount on your renewal premium that you get for not making a claim during the previous policy period.
Truth: If you renew the plan within the 90-day break-in period, you are eligible to receive the applicable NCB.
What will happen if you don’t renew your car insurance during the break-in period?
If you are renewing the policy within the 90 days grace period, you can continue to take advantage of the applicable No Claim Bonus benefit. However, an individual will forfeit the accumulated NCB benefit if they do not renew the policy within 90 days.
If a policy has been inactive for more than 90 days, it is deemed closed and an individual must purchase a new policy for their car. Before the policy is renewed, their vehicle will also need to be inspected. After 90 days, a policy renewal is regarded as a new policy and any accumulated NCB will be lost.
What are the consequences if you fail to renew your car insurance during the break-in period?
You can still use benefits like the No Claim Bonus for 90 days after the policy’s expiration date. The accumulated NCB benefit, however, will be forfeited if the policy is not renewed within 90 days.
A policy is considered closed if it has been inactive for more than 90 days and you must purchase a new one for your car. Prior to the policy being renewed, your car must also be inspected.
The effects of a break-in period in car insurance are listed below:
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Legal repercussions
Driving a car during the break-in period is illegal. According to The Motor Vehicles Act of 1988, in order to operate a vehicle on Indian roads, third-party insurance is a requirement.
You can be subject to legal repercussions if the uninsured vehicle is involved in an accident that also injures a third-party.
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Implications for financial security
Protecting yourself from monetary losses due to accident-related damage is the main objective of insurance. You are responsible for any costs incurred if your car is damaged during the break-in period.
Make sure to renew the policy on time to prevent such unanticipated financial losses. You can renew a car insurance policy instantly through Shriram General Insurance online. For a quick renewal of the policy, go to our website or download our app.
Benefits of promptly renewing your car insurance
The advantages of timely renewing your four-wheeler insurance are listed below.
All-round protection to your vehicle: Keeping your car insured can prevent a break-in period and a gap in the policy’s coverage.
NCB is retained: Every claim-free year increases the value of the NCB. For five years and beyond, you may receive up to 50%. At the time of renewal, you can even switch the NCB from one insurer to another.
Avoid liabilities: Since third-party insurance is required by law, having an expired third-party car insurance policy exposes you to potential liabilities.
To sum up
It is critical to renew your car insurance policy before the expiration date. Failure to do so exposes your vehicle not only to financial hazards but also to legal consequences. If an individual fails to renew their car insurance on time, they must do it within the permitted break-in period, which is 90 days from the policy expiry date.
If you have a habit of forgetting the policy renewal date, you can schedule a reminder on your smartphone or sign up with the insurer to get renewal date notifications via SMS and e-mails.
With Shriram Car Insurance coverage, you can easily renew your policy online. Furthermore, we provide unique add-ons that can substantially increase the coverage of your car insurance policy.
Key Highlights
- The time between the expiration date and the renewal date is known as the break-in period in car insurance.
- You are not permitted to make any claims during the period of the break-in. You have 90 days after the expiration date to renew the policy and keep it going, but you can’t file claims during this time.
- By keeping your car insured, you prevent a break-in period and a gap in the policy’s coverage.
- It is critical to renew your car insurance policy before the expiration date. Failure to do so exposes your vehicle not only to financial hazards but also to legal consequences.