Renewing your car insurance before expiry offers financial security and peace of mind, ensuring that you are always protected on the roads.
But what happens if you fail to renew your policy on time? You enter the break-in period in car insurance!
It is a critical phase during which your car remains uninsured, increasing its exposure to a variety of risks and financial losses.
Let’s understand more about what a break-in policy means in car insurance, its consequences and how to avoid them.
What is the Break-in Period in Car Insurance?
The break-in period in car insurance refers to the duration between the expiration date of your previous car policy and the renewal date of a new one.
It is essential to note that your vehicle remains uninsured during this time. This leads to an increased exposure to financial risks due to accidents, third-party damages and other events.
To avoid these risks and liabilities, it is crucial to renew your car insurance within the specified timeframe to avoid a break-in policy lapse.
What Happens if You Don’t Renew Your Policy During Break-In Period?
If you fail to renew your car insurance policy during the break-in period, you leave your vehicle exposed to a variety of risks and legal consequences. Here are the other break-in period car insurance penalties:
Legal Penalties
Your car remains uninsured during the break-in period. As you may know, driving an uninsured vehicle is a violation of the Motor Vehicles Act. This leads to heavy fines and other legal consequences like disqualification of driving licence, seizure of vehicle, etc.
Loss of No-Claims Bonus
A car insurance renewal after the due date also leads to the loss of no-claims bonus discounts you have accumulated over the years. As a result, you have to face higher premiums at the time of renewal.
Increased Financial Risk
Driving an uninsured vehicle exposes you to financial risks due to theft, road accidents, third-party damages and other unfortunate scenarios. If your car gets damaged during this period, you have to bear the repair/replacement expenses out of your pocket.
Mandatory Break-In Inspection for Car Insurance
If you fail to renew your policy during the given grace period, it becomes nullified. This means you can not reactivate/reinstate the coverage. You have to buy a new policy, which requires vehicle inspection and other cumbersome formalities.
Higher Premiums
Renewal of lapsed car insurance policies may attract higher premiums due to increased risk exposure. This is another disadvantage of the break-in period in car insurance.
Common Myths About Car Insurance Break-in Period
Premiums Remain the Same in Break-in Period
Car insurance providers may charge higher premiums during the break-in period. This is due to the assumed risk exposure of your vehicle during this period.
Policy Renewal During Break-in Period Has No Impact on No-Claims Bonus
Another misconception is that renewal of car insurance during the break-in period does not impact your no-claims bonus rewards. In reality, you lose all the NCB benefits if you don’t renew your car insurance within the given grace period.
Break-in Period Means Grace Coverage
Many people believe that insurance providers offer automatic grace coverage during the break-in period of car insurance. However, this is not true. Once your policy expires, you lose all the coverage and benefits. Simply put, your car becomes uninsured.
Benefits of Renewing Car Insurance on Time
Continuous Coverage
By renewing your auto insurance on time, you can enjoy continuous coverage. This safeguards your vehicle against potential financial risks. As a result, you can enjoy a worry-free driving experience.
Instant Renewal
Car insurance renewal before its expiration is simple, quick and hassle-free. No need to go through vehicle inspection and other formalities of buying a new insurance plan.
No-Claims Bonus Retention
No-claims bonus significantly reduces your premiums at the time of policy renewal. By renewing your insurance on time, you can retain and utilise up to 50% NCB discounts to enjoy affordable coverage.
Affordable Premiums
By renewing your car insurance before its expiry, you can avoid higher premiums caused by increased risk exposure assumed by the insurer.
Legal Adherence
On-time renewal keeps your car insurance policy active, helping you adhere to the traffic laws. Not only it helps you in avoiding heavy fines, but also saves you from many other penalties.
Reliance General Insurance: Buy/Renew Insurance Online
At Reliance General Insurance, we offer seamless car insurance purchase/renewal with a fully digital system. Whether you want to renew your existing car plan or purchase a new one, you can do so online on our official website or the
Reliance Self-i mobile app.
Besides instant policy issuance, we offer a wide range of car insurance plans, giving you the flexibility to select a suitable policy based on your requirements.
Further,
Reliance General car insurance policies are bundled with features like 100% claims settlement*, pocket-friendly premiums and access to over 10,000 network garages along with many other perks.
Buy/renew your car insurance with us today!
Frequently Asked Questions
Is there any grace period for car insurance?
Yes. We offer a car insurance grace period of 30 days, starting from the expiration date of your policy. During this period, you can reinstate your policy and other benefits you have gained over the policy period.
However, if you exceed the break-in policy, a vehicle inspection is required when you buy a new car plan.
What is the policy period for car insurance?
The policy period in car insurance refers to the duration for which a policy covers your vehicle against unforeseen damages and financial losses. At Reliance General Insurance, you can choose between multiple policy period options for short-term and long-term insurance.
How to renew car insurance online?
At Reliance General Insurance, you can renew your car insurance policy instantly on our website or the Reliance Self-i application.
Do insurance companies conduct vehicle inspections during the break-in period?
Some insurers may conduct vehicle inspection before renewing your policy to assess the condition and risk exposure of your vehicle. Get in touch with our insurance experts to learn more about the car insurance renewal process.
Disclaimers:
*T&C Apply. For more details on risk factors, terms conditions, brochure, and exclusions, please read the policy wording and CIS carefully before concluding a sale.
Claim Settlement Ratio: This is the overall claim settlement ratio for FY 2023-24 without claim outstanding at the start of the financial year as per public disclosure of Reliance General Insurance Co. Ltd.