Break in period in car insurance

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22 May 2023

Renew expired Car Insurance after due date with Kotak General Insurance

Car insurance renewal is an extremely important process that you cannot afford to lose. If you fail to renew your insurance policy on time, not only would you lose your ongoing car insurance and become vulnerable to facing legal implications if caught, but you would also lose benefits like premium discounts and No Claim Bonus. So it’s best to renew your car insurance policy on time so you can continue enjoying all the benefits. You have a break-in period in car insurance that gives you extended time to renew your car insurance policy even after it has expired.

What is the break-in period in car insurance? 

The period between your date of expiry and the date of renewal is known as the break-in period. So let’s say, your car insurance policy is about to expire on January 31st, 2022 and you have to get it renewed by that day. But suppose that for any reason you could not renew your policy. But after a few days, you get some time on your hand and you renew your policy on February 7, 2022. The 7-day gap between the date of expiry and the date of renewal of your policy is known as the break-in period in car insurance jargon.

Does the break-in period let you renew your policy even after it has expired? 

Almost every car insurance policy company in India gives a buffer of 90 days after the expiry date. So even if you have passed your original last date to renew your policy, you still have a window of 90 days. Hence, technically, your break-in period is 90 days as offered to you by your insurance company. 

Here are a few things to know about the car insurance break-in period: 

1. During this break-in period, your benefits, such as the No Claim Bonus, can still be safe. Passing your expiry date does not mean you lose any of the benefits. However, if you do not get your policy renewed within the break-in period of 90 days, then not only will you lose the benefits, but your policy will also lapse.

2. One might think that it is very beneficial to have a break-in period of 90 days because it gives the policy holder extra time to renew their policy. However, one of the primary disadvantages of the break-in period is that you cannot file any claims until your policy is renewed.

3. Since your car insurance policy has technically expired, you don’t have any policy to cover the damage. Hence, you cannot file any claims during the break-in period. In case of any damage, you will have to pay for the repair and replacement of the parts from your own pocket.

4. The expenses incurred by you to fix your car during the break-in period are not compensated by your insurer after your policy is renewed.

5. To keep enjoying the freedom of filing claims whenever needed, do not wait for the break-in period to renew your policy. Do it on the day it expires and continue using the prime benefit of your car insurance policy, which is the ability to file claims.

What if you do not renew your car insurance policy during the break-in period? 

If you fail to renew your policy within 90 days of the break-in period, you will lose your car insurance policy. Then the only way to get a car insurance policy is to buy a new policy. This would mean you losing your No Claim Bonus and having to get a new insured declared value for your car, which might be lower than before. 

So, the only way to avoid the hassle of getting a new car insurance policy is to get it renewed on time. Use the break-in period as an extended deadline given to you to retrieve all your benefits and continue with your car insurance policy.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist