Discover the importance of a grace period in car insurance policies. Learn about the advantages of no claim bonus and what happens if you miss the deadline.
Do you know when your car insurance policy expires, the insurance company does not terminate your policy immediately? They usually give time for a few days to renew your car insurance policy and continue the coverage. This period is called the Grace Period. Read on to know about the perks of renewing your car insurance policy within the grace period.
A time period offered by the insurer to renew the car insurance policy post the set expiry date is called the grace period. During the grace period, the policyholder can continue with all the advantages of the no claim bonus (NCB).
NCB is collected over the years for making no claim. To put it in simple words, if you have a streak of enjoying no claim bonus discounts over the years, then your discounts will still be applicable on renewing the car insurance policy during the grace period. This is one of the best advantages of the grace period.
There's one major benefit that you can't enjoy during your grace period. That is, you can't make a claim during the grace period of your car insurance policy. If damage is done to your car due to riot or natural calamity or theft, you won't receive any compensation for the claim. It is worth noting that if you choose to renew your car insurance policy during the grace period, then there will be no inspection of your vehicle, which saves a lot of time and hassles.
Generally, the duration of the grace period for a car insurance plan is fifteen to thirty days. This solely depends on your insurer. With Kotak General Insurance, you can renew your car insurance policy in a few clicks. It is recommended that you renew your policy within the grace period to enjoy all the benefits of your insurance cover. If you don't renew insurance within the grace period, then your policy will lapse, and you might have to pay a higher premium amount.
Your car will no longer be covered, and you can't file a claim - this is the biggest drawback of failing to renew your car insurance policy during the grace period! If you fail to renew insurance during the grace period, then you will lose all the benefits.
It is made compulsory by the law to possess an active car insurance policy for all car owners. To avoid legal issues and protect yourself and your car, you must always renew your insurance quickly.
Other drawbacks of not renewing your insurance during the grace period would be losing all your No Claim Bonus discounts that you might have acquired over the years. Furthermore, you would have to undergo the hassle of car inspection once again before renewing the car insurance policy. Thus, make sure that you renew your insurance policy within the grace period, or you might have to pay higher premiums.
Car insurance is crucial if you own a car. It can provide you with financial protection against expenses that might occur due to damages, theft, etc. Hence, it is recommended to keep your policy active by renewing it within the grace period.