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 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 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 Allianz General Insurance Company 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.

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.

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

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

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

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 Allianz General Insurance Company for a seamless renewal process and comprehensive coverage.     *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.