Car insurance policies in India come with a validity period or tenure, during which, they cover you against a range of unforeseen repair/replacement expenses.
Once this period is over, you need to renew your policy to continue the coverage. It goes without saying that your policy will lapse if you fail to renew it within the specified time frame.
The timeframe we are referring to is the “grace period” in car insurance. In this blog, we will discuss what exactly the car insurance renewal grace period means and why it is important to care about it.
What is the Car Insurance Renewal Grace Period?
The grace period refers to a duration within which you can renew your car insurance policy without losing its benefits.
Note that the auto insurance grace period begins right after the expiration date of your policy and lasts from a few days to months, depending on your insurance provider. During this period, your insurance provider offers the last chance to renew and reinstate your plan.
Another important thing to note about the auto insurance grace period is that your policy is still considered expired or lapsed during this timeframe. Any claims raised within this duration will not be processed.
It is just a window during which you can reinstate or revive your existing plan and benefits like no-claims bonus, cumulative bonus, etc.
What is the Duration of the Car Insurance Policy Renewal Grace Period?
The duration of the car insurance policy renewal grace period differs from one insurance company to another. It can range anywhere from a few weeks to months, based on your insurer.
At Reliance General Insurance, we offer a grace period of 30 days or a month. It starts right after the given expiry date of your car insurance policy.
Instead of going through the tedious vehicle inspection and other buying formalities, you can revive your policy, its benefits and all the rewards you have accumulated over your policy period when you renew your policy within the grace period.
Significance of Car Insurance Renewal Grace Period
Wondering what is the importance of the grace period for renewal of car insurance? Here is your answer:
Regain Your No-Claims Bonus
By renewing your car insurance within its grace period, you can regain your no-claims bonus (NCB) points. It is a common benefit that is awarded if you do not make any claim during your policy year.
You get these NCB rewards in the form of discounts, which you can avail of at the time of policy renewal. For those who do not know, NCB discounts can significantly lower your insurance premium.
You can also regain other rewards by renewing your insurance during the grace period, not just the no-claims bonus. These include loyalty points, cumulative discounts, etc., you have collected during your policy tenure. These discounts and rewards can help you lower your insurance premium.
Avail Low Premium Rates
Generally, the premium rates for policy renewal are lower than those for buying a new car insurance plan. This is mainly due to the availability of discounts and reward programs offered to existing policyholders.
Keep in mind that your grace period is the last chance to get these benefits and discounts. Missing this window would mean losing all the above-mentioned perks.
No Need to Buy New Policy
Buying a new car insurance plan is not as simple as it sounds. You need to select a suitable plan, go through a tedious vehicle inspection, arrange documents and perform all the formalities all over again.
By renewing your existing plan within the grace period, you can save yourself from the hassle of buying another policy.
What Happens After the End of Your Car Insurance Renewal Grace Period?
What are the next steps for car insurance with an expired grace period? Here is the obvious answer;
Once your grace period is over, you will not be able to re-activate your existing car insurance policy.
Besides losing all the benefits, you also have to purchase a new car insurance plan, which is often complex and time-consuming.
For this reason, it is very important to renew your policy in a timely manner. While it is highly recommended to renew your insurance before its expiry, you can do the same within its grace period to continue with the same coverage and benefits.
Renew Car Insurance Online at Reliance General Insurance
Whether you are planning to purchase a fresh
car insurance plan or wish to renew your existing car insurance policy, we have got your back.
Reliance General Insurance offers an easy and quick car insurance renewal process to save you time and effort. To
renew car insurance online, you can use our Self-i application or visit our website for quick and responsive service.
Always keep in mind that timely renewal of car insurance is important to enjoy the coverage and benefits.
Not satisfied with your existing policy? Move to our
comprehensive car insurance for extensive coverage, affordable cost and effortless claims settlement process with an assurance of 100% claims settlement.
Contact us today!
Frequently Asked Questions
Can I file a claim during my car insurance policy grace period?
No. Your policy is still lapsed/inactive during the grace period. For this reason, you can not raise a claim and get it settled before renewing your policy.
Should I renew my existing car insurance policy or buy a new one?
Whether you should renew your existing plan or buy a fresh policy depends entirely on your coverage requirements. If you are satisfied with the coverage and benefits of your existing plan, you can consider renewing the same policy.
However, if the existing coverage is not enough and you are not satisfied with your insurance company, it is a good idea to invest in a new plan or insurance provider.
Where can I find the grace period of my car insurance policy?
The grace period of your policy is most likely to be mentioned in your policy documents. If you are unable to find your grace period in the policy wording, you can reach out to your respective insurer for details.