Break in Period in Car Insurance

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Break in Period in Car Insurance

Cars have become an indispensable part of our lives. They make our life a lot easier. However, today owning a car without four-wheeler insurance could be risky. Moreover, accidents may occur anytime, anywhere. And if your car sustains any losses due to such mishaps, it might be financially overbearing for you.

Thus, renewing car insurance on time is necessary to keep the policy active. Being said that, even if you have car insurance, you may often forget about renewing the insurance on time due to several unavoidable circumstances and the policy may expire. So, in such cases, you can still pay for the policy and renew the existing policy until a specified time frame called the break-in period.

What is a Break-in Period?

The break-in period in car insurance is between the expiry date of the previous car insurance policy and the date on which you can renew the insurance plan. During this time frame, the car insurance policy will be inactive. So naturally, if your vehicle incurs any damage during this period, the insurance policy will not cover the cost for the same.

For example, if your car insurance plan expires on 30th December, and you renew it on 11th January, these eleven days between the plan's expiry date and the renewal date of the plan, your insurance policy will remain inactive. This is when your break-in car insurance will help.

What Happens in Case You Don’t Renew the Car Insurance Plan During the Break-in Period?

Most of the car insurance providers in India offer a grace period of 90 days, during which you will have to renew the insurance policy of your car. Usually, this is the maximum time allowed to renew a car insurance policy. During this 90-day break-in period, you are still eligible to get No Claim Bonus (NCB) benefits, which can reduce the policy premium by 50%.

However, once 90 days are over, you will lose all your accumulated policy benefits. Also, your car insurance policy will lapse. And naturally, you will again have to buy car insurance, where the insurer will decide the IDV of your vehicle after a re-inspection of the same. So, an insurance policy bought after the 90-day break-in period will be treated as an all-new policy, and all the NCBs and discounts collected by you will expire.

A Few Common Myths Related to the Break-in Period in Car Insurance Plan

You might be aware of these myths related to the break-in period in a car insurance policy already. So, let’s find out how one should respond to them.

Myth 1 : A car insurance policy cannot be renewed during the break-in period. Also, you may have to purchase an all-new policy.

This is not true. You can always renew your break-in car insurance policy during the break-in period, as already stated above, and continue with the same plan. However, while you can renew the plan during that time frame, you will lose out on the benefits of curated discounts and NCB if you don’t renew the plan within the 90-day break-in period.

Myth 2 : You cannot get the No Claim Bonus discount that you’ll receive on the policy renewal if you do not raise claims during the previous insurance policy period.

The truth is, you can only avail the benefits of the NCB if you renew the insurance plan within the 90-day break-in period.

Myth 3 : You can always raise car insurance claims related to your policy during the break-in period.

The reality is, you cannot raise any claims during the break-in period as, during that time frame, your policy remains inactive.

Benefits of Renewal of Car Insurance Policy on Time

Although you can renew your car insurance during the break-in period, it is always better to avoid delays and renew on time. Here are a few benefits to support this statement.

It is Essential for Every Car Owner: Being a responsible Indian citizen and a car owner, you need to buy a car insurance policy and renew it on time. Simply buying the policy once and forgetting to renew the same won’t suffice. The car insurance policies are usually limited-period plans and hence, need timely renewal. It is also important from a legal standpoint.

It Can Save You from Monetary Liabilities: Not renewing your car insurance policy may lead you to incur financial losses as well. If your car gets involved in an accident and acquires damage, the insurer will not be liable to pay for the same if you do not have an active car insurance policy. Hence, it is better to pay the insurance premiums on time rather than burning a hole in your pocket during such unavoidable circumstances to save your hard-earned money.

It Can Keep You Off from ‘No Claim Bonus Reset: This could be terrible news for all car owners. This means that all your stacked-up NCBs till now will be reduced to zero if you do not renew the policy on time. Also, if you do not renew the break-in car insurance plan within the break-in period of 90 days, it can lead to an NCB reset.

It Can Keep Everyday Hassles at Bay: Whether it’s about paying the penalty for driving without active insurance or managing third-party liabilities, non-renewal could be filled with everyday hassles! Hence, to keep them at bay, it’s better to buy a car insurance plan and keep renewing the same on time to make your everyday commutes easy and safe.

Disadvantages of a Break-in Period in Your Four-Wheeler Insurance Plan

Now that you are aware of the benefits of expired car insurance renewal on time, let’s talk about the disadvantages of a break-in period in your car insurance policy.

Legal Consequences: Driving your car during the break-in period is a legal offence. It is mandatory to have active car insurance with a Third-party insurer to be able to drive on the Indian roads, according to The Motor Vehicles Act, 1988. Hence, if you are out and about with your car without a break-in car insurance policy in hand, The law will levy monetary fines upon you. Also, in case your car gets involved in an accident during that time frame, where a third party is injured, you will have to face legal consequences.

Monetary Consequences: The primary goal of active car insurance is to safeguard your money and avoid financial losses during accidental damage. So, if your car gets damaged during the 90-day break-in period, you will have to bear all the charges.


Car insurance is mandatory in India for every car owner. Hence, if you have recently bought a car, you should buy car insurance to make it easier and safer to drive your vehicle on the road. However, always calculate car insurance premiums online and compare the available options to find the best one for yourself. After all, making an informed decision will save you money on your break-in car insurance.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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