Car insurance provides financial coverage against damages caused due to an accident or mishap. Every car insurance has an expiration date, and renewing your policy before the expiration date is essential. A car insurance premium calculator can easily and accurately calculate the policy premium during renewal or fresh purchase.
Insurance providers offer a grace period to renew your car insurance policy. Continue reading to learn more about the grace period in car insurance.
What is the Grace Period in Car Insurance?
Sometimes, you might forget or fail to renew your four-wheeler insurance policy on time. This may occur for several reasons, including family emergencies or financial complications. This can result in your car insurance lapsing, exposing you to several financial risks.
However, a grace period allows you to renew your car insurance policy after it has expired without losing benefits.
With a grace period in car insurance, you are given a certain number of days after your original policy expires, during which you can pay your insurance premium to renew your policy and retain the associated benefits of your coverage.
Benefits of Car Insurance Grace Period
Below are the benefits of renewing your four-wheeler insurance policy within the grace period.
Retaining the NCB (No Claim Bonus)
By renewing your car insurance policy within the grace period, you can preserve and avail the No Claim Bonus you have earned.
The Car Insurance Policy Remains Active
Within the grace period, the car insurance policy remains active. However, it is important to note that you will not be protected against damages to the four-wheeler or third-party liabilities. While you can not raise insurance claims, with a grace period, you can retain the NCB benefits up to 90 days from the expiry date of the car insurance policy.
Minimise Potential Premium Increase
You can avoid the risk of an increase in the premium by renewing your car insurance policy with the grace period, saving you from increased insurance premium costs.
Duration of the Grace Period in Four-Wheeler Car Insurance
Depending on the terms and conditions of your insurance provider’s car policy, the grace period usually lasts 15 to 30 days. You are allowed to renew your car insurance policy after the grace period expires; however, you might have to pay a late or penalty fee, and you will end up losing your earned benefits, like the no-claim Bonus.
What are the Consequences of Not Renewing Car Insurance Policy on Time?
Legal Issues
Driving a car without a valid insurance policy can result in traffic police penalties or fines. A repeat offence can also lead to a jail term or other harsh penalties.
Losing NCB Benefits
If you fail to renew your policy within 90 days from the day your car insurance expires, you will lose the discount you receive for not raising any claims during the policy period.
Loss of Coverage and Claim
If you fail to renew your car insurance policy, you will lose coverage, which means you are not allowed to raise any claims. In case of damages to your four-wheeler, your insurance provider will not be responsible for compensating you for the loss.
How to Renew Your Car Insurance Policy Online
You can renew your four-wheeler insurance plan online by following the steps mentioned below to renew.
Visit your insurance provider’s official website.
You will be required to provide necessary information, such as your insurance policy name, registered mobile number, registered vehicle number, etc.
If you are planning to switch to another insurance policy, you can look for it and continue to purchase the policy of your choice.
After you click enter, you will be redirected to a payment page.
Choose a payment method (credit/debit card, UPI, internet banking)
Once the payment is made, your car insurance policy will be renewed.
The process might differ depending on your insurance provider*
To Wrap It Up
For hassle-free services from your insurance provider and continuous coverage for your four-wheeler, you must renew your car insurance policy on time. As discussed above, not renewing your car insurance policy on time can create a lot of inconvenience for you. If you’re facing financial difficulties, consider seeking assistance from a licensed money lender to ensure timely renewal of your policy.
Renewing your car insurance policy online is much easier. Thus, it is recommended that you purchase insurance policies online. This will allow you to buy car insurance, compare policies, and compare premiums from the comfort of your home.