Break-in Period for Car Insurance – Everything You Need to Know
In current times, having an automobile is a sensation that is associated with independence and freedom. When you own a car, you can easily commute inside your city and even take road trips outside of its borders. Owning a car, though, may be a costly liability. Because of this, you also need to have a car insurance policy. This way, even if your vehicle is involved in an accident, you can still claim coverage and receive money to pay for repairs.
Several jargons are used in the car insurance industry, which further complicates issues.
One of them is the idea of an insurance break-in period for cars.
It is advised that you educate yourself on the break-in time before purchasing a four-wheeler insurance coverage because it is a crucial component.
What is a break-in period for car insurance?
The break-in period, to put it simply, is the interval between the expiry date and the renewal date. Let’s try to comprehend this using an example in order to make things extra obvious. There will be ten days between when your insurance policy expires on July 21 and when you decide to renew it on August 1 for another year. The break-in period is the first 10 days during which the policy is dormant.
Fact-check about break-in period for car insurance in India
Facts and falsehoods regarding the break-in time in auto insurance have both existed. A handful of them are listed below and discussed:
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.
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 should be aware that it may be illegal to drive your vehicle on public roads during the break-in period. According to The Motor Vehicles Act of 1988, it is a need to have third-party insurance on a vehicle before it may be driven on Indian roads. Money-based fines may be imposed on anyone caught operating a vehicle without a current auto insurance coverage. They can face legal repercussions if the car is somehow engaged in an accident that results in a third party suffering injuries. It is simple to renew third-party auto insurance online.
Financial security consequences
You are responsible for paying any damages to your car that occur during the break-in period. This is why it is important to renew your auto insurance on time to avoid having to deal with unforeseen financial difficulties.
Benefits of renewing car insurance on time
You will be able to take advantage of certain benefits as long as you renew your auto insurance on time.
By timely renewing your four-wheeler insurance, you can avoid both a coverage gap and the headaches associated with the break-in period.
The No Claim Bonus, or NCB, accrues value for each year without a claim. You can receive up to 50% if you work at least five years in a row. While renewing your auto insurance, you can even transfer the NCB from one insurance provider to another.
Due to the requirement, third-party insurance is a requirement for all drivers and car owners. The fact that your auto insurance is expired may have legal repercussions for you. Therefore, you can prevent needless legal obligations by timely renewing your auto insurance policy.
These factors emphasise how crucial it is that you obtain auto insurance as soon as possible. You will experience fewer legal repercussions as a result, and it will also be simpler for you to carry benefits like NCB forward. These days, you may also renew your policy online, which has the added benefits of making it simple to compare insurance companies and speeding up the purchase of your selected coverage.