Driving an uninsured vehicle is illegal in India. Moreover, an expired insurance policy can expose you to financial risks in case you meet with an accident. That’s why vehicle owners opt for immediate car insurance renewal when their existing policy expires.
But all insurers offer a grace period for car insurance renewal to encourage policyholders to renew the plan. But what is the grace period, and how long does it last? Continue scrolling to find out.
Understanding the Grace Period in Car Insurance
The grace period is the stipulated time policyholders get to renew their policy before losing the benefits associated with it. The grace period provides policyholders with some extra time for car insurance renewal.
During the grace period for car insurance renewal, you are still entitled to benefits like the no-claim bonus. But you won’t be able to raise a claim during the grace period. Therefore, if your vehicle is in an accident during the grace period, you will have to pay from your pocket.
Grace Period Duration
The grace period for car insurance policy renewal usually lasts for around 15 to 30 days. The specific duration of the grace period will vary according to the terms and conditions of your insurer. Remember that you can still renew your car insurance policy after the grace period is over.
However, you will have to pay an extra fee for car policy renewal after the grace period. Additionally, you will end up losing benefits like the no-claim bonus.
Benefits of Renewing Your Vehicle Insurance Policy Within the Grace Period
If you opt for car insurance renewal within the grace period, you will be entitled to the following benefits:
- Lower Potential Increase in the Premium: When you opt for car policy renewal before the expiry date, you can avoid an increase in the premium. You might be able to get your policy renewed by paying the same premium as the first time.
- Get the NCB: By choosing a car insurance policy renewal within the grace period, you will be able to leverage the NCB. It will significantly reduce the premium amount that you need to pay from your pocket.
- Keep the Insurance Policy Active: During the car insurance grace period, the policy remains active. However, you won’t be able to raise any claim during the grace period. Therefore, you should go for car insurance renewal within the grace period to continue raising successful claims.
How to Renew Your Car Insurance Policy
Nowadays, insurers offer added convenience to policyholders by offering car insurance renewal online. The steps to renew your car insurance online are as follows:
- Open the website of your insurance provider.
- Provide details like your vehicle number, registered mobile number, and information about your existing policy.
- You can renew the existing plan or choose a different plan for added benefits. You can also consider adding or dropping riders during car insurance renewal online.
- Hit enter to go ahead to the payment page and choose the convenient option for paying. You can choose from different payment methods like debit or credit card, UPI, and net banking.
- Once you complete the payment, you will receive a message confirming your car insurance renewal online.
Always remember to renew your car insurance policy on time for constant coverage against third-party and own damage. Failing to renew your four-wheeler insurance policy can attract a lot of legal complications. Therefore, go for car insurance policy renewal and avoid unwanted hassles.
Can I get my NCB if the car insurance policy expires?
You will have to renew your car insurance policy within 90 days of the expiry date to claim the NCB. Since the NCB can significantly reduce your premium, you should renew your four-wheeler insurance policy in time.
Will my insurer inspect my vehicle during policy renewal?
You will get the opportunity to renew your car insurance policy before its expiry date. After that, the insurer offers a grace period for car insurance policy renewal. If you fail to renew your car policy within the grace period, the insurer will inspect your vehicle and provide a quote to insure it.
Can the insurer refuse to renew my car insurance policy?
Yes, an insurer can refuse to renew your car insurance policy under certain circumstances. Insurance companies have the right to assess the risks associated with insuring a particular car and make decisions regarding policy renewals based on those assessments. Some common reasons an insurer might choose not to renew a car insurance policy include misrepresentation or fraud, documents mismatch or incomplete information.
Can I drive my car if its insurance policy has expired?
After your car insurance policy has expired, you will get a grace period for renewing it. During the grace period, the policy will be active, but you can’t raise a claim. While it won’t be illegal to drive your car during the insurance renewal grace period, you will have to pay for any damage from your pocket.
Is there a fine for renewing a car insurance policy after the grace period?
You will have to pay extra charges for paying your car insurance policy after the grace period. Besides, you will end up losing benefits like the no-claim bonus.