Cars are now an integral part of our daily life. Moreover, they have become a way to make life easier. When you buy a car, all our transportation hassles disappear. You no longer have to worry about catching the bus on time or spending it on taxis regularly. But they have responsibilities as well as useful cars. One of these responsibilities is to have four-wheeler insurance. Accidents can happen anytime, anywhere. And if any damage occurs to your vehicle due to such accidents, it will be financially burdensome for you. That’s why it’s so important to have car insurance.
It is important to keep your policy active as well as having a motor insurance policy. This means ensuring that your auto insurance policy is renewed on time. However, managing car insurance is tedious. Sometimes, even if you have the best car insurance available, you can often forget about the timely renewal of insurance due to unavoidable circumstances. This will cause your policy to expire. In such cases, you can still pay the premium and renew your current policy up to a certain period known as the break-in period.
What is the break-in period?
The break-in period in motor insurance is the period between the expiry date of your policy and the last date you need to renew your policy after the expiry date. During this time, the car insurance policy will not be active. Naturally, if any damage occurs to your vehicle during this time, claiming through the car insurance app will have no use as the insurance policy will not cover the repairs.
For example, if your auto insurance policy expires on 31 December and the last date for policy renewal is 31 March, the total number of days between these two dates is the break-in period. During this period, your insurance policy will not be active. This is when it will be most beneficial if you have an additional policy for when your main policy expires. However, you should not forget to renew your policy during the break-in period.
What happens if you don’t renew your insurance plan during the practice period?
For most policyholders, insurance providers offer them a 90-day grace period. During this period, you should make sure that you have the insurance renewed. Generally, this is the maximum amount of time to renew a car insurance policy. During this 90-day familiarization period, you are entitled to No Claim Bonus (NCB) which can reduce the policy premium by up to 50%.
However, at the end of 90 days, you will lose all the policy benefits you have accumulated. Also, your car insurance policy will be terminated. And of course, you will need to purchase car insurance, where after car inspection the insurance company will repair your car’s IDV. Therefore, an insurance policy purchased after a 90-day break period will be considered a new policy and any NCBs and discounts you have accumulated will be forfeited.
Car insurance is an extremely important financial tool. As per traffic regulations, every car owner is required to purchase at least third-party car insurance online in India. Therefore, if you have recently purchased a car, you should purchase car insurance to drive your vehicle comfortably and safely on the road. However, always calculate the car insurance premium online and compare the available options to find the one that suits you best. All in all, making an informed decision will save you money and help you with the renovation.