It is mandatory to have at least third-party car insurance to legally drive your car on Indian roads. If you fail to renew your car insurance policy on time, you face the risk of heavy expenditure if you meet with an accident. You may also get fined by the police. Fortunately, insurance companies offer car owners a grace period for car insurance renewal.
What is the grace period in car insurance?[quads id=6] The grace period is a span of time after your car insurance policy lapses during which you can still renew coverage without losing benefits. This car insurance grace period is given by insurers to give you a bit of extra time to renew your insurance. The grace period is given for third-party insurance and comprehensive motor insurance policies.
Insurers understand that you may not be able to renew your coverage at its due date due to certain personal reasons or emergencies. The grace period in car insurance lets you continue your coverage without losing out on the accumulated benefits of your plan. However, it is important to note that your car insurance policy is not active during the grace period, and you cannot make a claim.
Duration of grace period in car insurance
The exact duration of the grace period for car insurance payment can vary between insurance companies. Generally, this period lasts anywhere between two weeks to 30 days. You could consider reaching out to your insurer to ask the exact details of their grace period.
Benefits of the grace period
True to its name, the grace period can prove to be a saving grace. It lets you –
Retain all the benefits of your car insurance policy such as the no-claims bonus
Keep your policy active on the same terms even though you cannot raise any claims
Enjoy the same car insurance premium as well as any discounts that you may get from the no-claim bonus
Therefore, make sure to renew your car insurance policy on time or within the grace period for the peace of mind that continued coverage brings.
Frequently asked questions on grace period in car insurance
Can I renew car insurance online during the grace period?
If your insurer offers you the facility of renewing car insurance online, you can renew your coverage during the grace period online as well. Simply log on to the insurer’s website, provide the details as required, read the terms and conditions, and make your payment.
What happens if I fail to renew car insurance in the grace period?
If you do not renew your car insurance during the grace period, your policy will expire. If your car insurance expires, you will lose the benefits that you have accumulated, such as the no-claims bonus, and you will have to apply for a new car insurance policy which might cost you more than your existing coverage.
Can I raise a claim for third-party damages during the grace period?
No, you cannot raise any kind of claim during the grace period in car insurance.[quads id=3]