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Break-in Period in Car Insurance Policy

When it comes to understandingtechnical terms and jargon related to car insurance, we are often at a loss. But it is important to know and comprehend exactly what we are signing up for. These are the details that define the kind of coverage our policy will provide in case we are in a car accident.

One such term is Break-in Period and in this article we will help you demystify what exactly a break-in period for car insurance is and why it is important to know about it before buying a car insurance policy.

What is a break-in period for car insurance?

A break-in period is the time between the last date for renewal of car insurance and the date on which you renew the policy. For example, your policy renewal date is January 1 and you get it renewed on January 30, then the 30-day gap in between will be known as the break-in period. Your motor policy remains inactive during this time and if your vehicle faces any damage during this period, it will not be covered under the policy.

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

Most insurance companies in India provide a grace period of 90 days during which you can renew your car insurance policy. That is the maximum allowed ‘break-in period’ is of 90 days. During the break-in period, you are still eligible for benefits like No Claim Bonus (NCB), which can reduce your policy premium by as much as 50%.

However, once the window of 90 days is gone, you will lose all the accumulated benefits. Your motor insurance policy will lapse. You will then have to start everything from the beginning and the IDV of your vehicle will be decided after its re-inspection. Policy purchased after 90 days is treated as a completely new policy and all the discounts and NCBs collected will expire.

Benefits of renewing car insurance policy on time

There are many benefits of renewing the car insurance policy on time. The first and the most important benefit is that your car is insured all the time. There are no gaps and no break-in period.

And as mentioned above, you get NCB for every claim-free year. The good thing is the value of NCB increased with each renewal – from 10% after the first year to 50% at the end of the fifth year and more. And if you are selling off your old vehicle and buying a new one, some insurance companies even allow the transfer of NCBs to the new vehicle’s policy.

Considering that it is mandated by law to have a car insurance for every car owner, an expired car insurance policy also makes you liable against legal charges. Therefore, it only makes to renew your car insurance policy on time without waiting for the break-in period.

Given the losses and complications one faces towards renewing a lapsed car insurance policy, it clearly makes sense to renew it on time. And if at all you forget to do so, you must do it within the allowed break-in period, especially when all it takes for car insurance policy renewal is a few simple steps online.

Nowadays, you can even opt for receiving notifications for policy renewal date through emails and SMS alerts. So do not wait until the break-in period to renew your policy. Renew it well on time to enjoy all the benefits and discounts that come along.

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle".


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