Break-in Period for Car Insurance

Break-in period For Car Insurance – Everything You Need to Know

The feeling of owning a car is one that is synonymous with freedom and being independent in modern times. When you have a car, you can commute across your city without any challenges and can even go on road trips out of the city bounds. However, owning a car can be an expensive liability. That is why you also need to have a car insurance policy so that even if the car is involved in an accident, you can claim the coverage and get expenses for repairing the car.

To make matters more complex, with car insurance, several jargons come along. One of them is the concept of a break-in period for car insurance. It is an important factor and it is recommended that before you buy a four-wheeler insurance policy, you must educate yourself about the break-in period.

What is Break-in Policy for Car Insurance?

To put it simply, the break-in period is the time between the expiry date and the renewal date. To make things even clearer, let us try to understand this with an example. If your insurance policy expires on 21st July and you choose to renew it on 1st August, there will be 10 days in between during which time the policy will remain inactive. This break period of 10 days in which the policy remains inactive is called the break-in period.

Fact Check About Break-in Period for Car Insurance in India

There have been some myths and facts about the break-in period in car insurance. Here are a few of them discussed below:

Myth 1: You cannot renew your car insurance plan during the break-in period and you even may need to purchase a new policy.

Fact 1: During the break-in period, the policyholders can easily renew the car insurance policy and even can continue with the same car insurance plan. As a matter of fact, if you renew your car insurance policy within the break-in period, your No Claim Bonus (NCB) will remain intact.

Myth 2: The policyholders can raise claim requests during the break-in period.

Fact 2: Since the car insurance policy is inactive during the break-in period, the policyholder will not be allowed to make any claim during this period. The policyholders get around 90 days from the date of expiry to renew their policy, though won’t be eligible to make any claim.

Myth 3: Policyholders cannot avail of the NCB discount on the premium renewal for not raising claims in the previous policy term.

Fact 3: On renewing the policy within 90 days of the break-in period, you will have the advantage of the NCB benefit on the premium renewal.

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Shortcomings of Break-in Period in Car Insurance

There are a few disadvantages of a motor break-in period. Some of them are mentioned herein below:

Legal consequences: 

You need to be aware of the fact that if you drive your car during the break-in period on public roads, it can be a legal offense. Insuring the car with Third-party insurance is mandatory to drive on Indian roads, as per The Motor Vehicles Act, 1988. Someone driving a car without a valid car insurance policy can be charged monetary fines. If the car is somehow involved in an accident in which a third party is injured, they may have to go through legal consequences. Third-party car insurance can easily be renewed online.

Financial security consequences

In case your car is damaged during the break-in period, the financial burden has to be borne by you. This is why you must renew your car insurance policy on time so that you do not have to face such unforeseen financial challenges.

3 Benefits of Renewing Car Insurance on Time

As you renew your car insurance on time, you will be able to avail certain advantages.

1. When you renew your four-wheeler on time, you will be able to avoid a gap in your policy coverage along with all the hassles of the break-in period.
2. For each claim-free year, the value of the No Claim Bonus or NCB increases. For five consecutive years or more, you will get up to 50%. You will even be able to transfer the NCB from one insurance company to the other while renewing your car insurance.
3. Every car owner or driver needs to have Third-party insurance since it is mandatory. When you have an expired car insurance policy, it can have legal implications for you. Therefore, by renewing your car insurance policy on time, you can avoid unnecessary legal liabilities.

These reasons make it important for you to have car insurance well within time. This will minimize any legal implications for you, and also make it easier for you to carry forward benefits such as NCB. These days you can also carry out your policy renewal online, with the added advantages of easy comparison between insurance providers and quick purchase of your desired policy.

Read More:

• Important Car Safety Rules to Stay Safe on Roads
• Car Insurance Calculator – Know How to Use
• How to Claim Car Insurance for Own Damage?
• Tips to keep your car battery healthy and long lasting

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