Break-in Period in Car Insurance: All You Need To Know

Managing car insurance can be tricky, especially when understanding specific terms and conditions. One important aspect is the break-in period. Knowing how to manage this period can make a big difference in ensuring continuous coverage and avoiding potential pitfalls. In this post, we'll explain everything you need to know about the break-in period in car insurance, including the new car insurance details, the break-in period, how it impacts your coverage, and why timely renewal is crucial.

What is a Break-in Period in Car Insurance?

The break-in period for car insurance refers to the time frame between your car insurance policy's expiry and renewal. During this period, your policy remains inactive, leaving your car without insurance coverage. For instance, if your policy expires on August 30th and you renew it on September 11th, the days between these dates constitute the break-in period. This period is crucial because any claims made during this time will not be honoured since the policy is inactive. Furthermore, if you do not renew your policy within a specific time frame, typically 90 days, you risk losing accumulated benefits such as the No Claim Bonus (NCB).

Myths About Car Insurance Break-in Period

There are several myths surrounding the break-in period that can lead to misconceptions. Let's debunk a few:

Myth 1: You Cannot Renew the Policy During the Break-in Period

However, you can renew your car insurance policy during the break-in period. Failure to renew within 90 days from the expiry date will result in losing your NCB and other benefits.

Myth 2: You Can Raise Claims During the Break-in Period

During the break-in period, the policy is inactive, and no claims can be raised. You need to renew the policy first to activate coverage.

Myth 3: You Cannot Avail the NCB Discount

If you renew your policy within the 90-day break-in period, you can still take advantage of the NCB discount. Delaying beyond this period will forfeit the accumulated NCB.

Myth 4: Voluntary Deductibles Are Applicable Along with Compulsory Deductibles

Only the compulsory deductible is applicable when you renew the policy during the break-in period. Voluntary deductibles chosen earlier do not carry over automatically. Not renewing your car insurance during the break-in period can have several consequences:

Legal Implications

Driving without valid insurance is illegal in India. The Motor Vehicles Act of 1988 mandates having at least Third-party Liability Cover. Failure to comply can result in monetary fines or legal issues, especially if you are involved in an accident during the break-in period.

Financial Security

The primary purpose of car insurance is to protect against financial losses arising from accidents or damages. If your car sustains damage during the break-in period, you must bear the entire cost of repairs out of pocket.

Loss of Benefits

If you do not renew your policy within 90 days, you lose the NCB benefits. For policies that expire beyond 90 days, your car will require an inspection before a new policy is issued, and the accumulated NCB will be forfeited.

Benefits of Renewing Car Insurance on Time

Renewing your car insurance from a reputed insurer like Bajaj General Insurance Limited on time comes with several advantages:

Continuous Coverage

By renewing on time, you ensure that your car is continuously insured without any gaps in coverage. This means you are always protected against financial losses and legal issues.

Retention of NCB

Timely renewal helps retain your NCB, which offers significant discounts on the premium for each claim-free year, potentially up to 50% over five consecutive years.

Avoid Legal Liabilities

With a valid car insurance policy, you avoid legal liabilities and penalties associated with driving an uninsured vehicle.

Disadvantages of a Break-in Period in Motor Insurance

A break-in period occurs when your car insurance lapses and isn’t renewed on time. This puts your vehicle at risk since any accident, theft, or damage during this time will not be covered. You may also lose your accumulated No Claim Bonus (NCB), leading to higher premiums. Most insurers, including Bajaj General Insurance, require a vehicle inspection post-break-in, delaying policy issuance. Additionally, driving during this time is illegal and can attract fines or legal action.

How to Avoid a Break-in Period in Car Insurance

To avoid a break-in period, set renewal reminders or enable auto-renewals. Renew your policy at least 7–15 days before expiry. Bajaj General Insurance offers seamless online renewals with reminders via SMS and email. Long-term policies are another smart way to ensure continuous coverage and avoid last-minute hassles.

Which is the Right Policy For Renewal?

Comprehensive Car Insurance is the most appropriate policy for renewal. It offers extensive coverage, including both own damage and third-party liability. It provides financial protection against various risks, ensuring car owners' peace of mind. Renewing this policy on time is essential to avoid the break-in period and ensure uninterrupted coverage.

Also Read: How to Legally Change Your Car's Colour in India?

How to Renew Car Insurance During the Break-in Period?

Renewing your car insurance during the break-in period is straightforward, especially with Bajaj General Insurance Limited. Here’s a simple guide:

• Visit the car insurance renewal page and click on ‘Renew Online’.
• Enter your current policy number and vehicle registration details.
• Check the No Claim Bonus percentage applicable this year.
• Choose your car's insured value and decide on additional fittings coverage.
• Consider our DriveSmart Telematics Services for features like vehicle diagnostics and roadside assistance. We offer three packages: Classic, Premium, and Prestige.
• Explore top-up covers to enhance your policy.
• Review all details, including personal information updates like address or phone number changes.
• Receive your premium quote and complete the payment.

Conclusion

Understanding the break-in period in car insurance is crucial for maintaining continuous coverage and avoiding financial and legal hassles. Renewing your car insurance on time ensures you retain benefits like the NCB and stay protected against unforeseen expenses. Choose reliable insurers like Bajaj General Insurance Limited for a seamless renewal process and comprehensive coverage.   

FAQs

What is the grace period for renewing car insurance?

The grace period typically ranges from 15 to 30 days post-policy expiry, but your vehicle remains uninsured during this time.

Is there a fine for driving with expired insurance during the 90-day break-in period?

Yes. Driving without valid insurance is illegal, even during the break-in period, and can lead to penalties.

What are the penalties for letting car insurance expire?

Penalties include legal fines, loss of NCB, higher premiums on renewal and exposure to financial risk in case of an accident.

Am I allowed to drive my car during the insurance break-in period?

No, it is not allowed. Your vehicle is considered uninsured and driving it is a legal offense.

How long does the car insurance break-in period last?

It can last up to 90 days post-policy expiry. However, there’s no coverage until renewal is done.

Can I legally drive during the break-in period after my car insurance expires?

No, it is illegal to drive during this period as the car is not covered by any valid policy.

How can I prevent a break-in period in my car insurance policy?

Set renewal alerts, enable auto-renewal, or choose long-term plans. Companies like Bajaj General Insurance provide proactive renewal reminders.

What is considered a break-in period in car insurance?

It’s the time between your policy’s expiry and its renewal. Your car remains uninsured during this period.

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

*Claims are subject to terms and conditions set forth under the motor insurance policy.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.