Car Insurance Grace Period: Meaning and Importance

team AckoMay 17, 2022 To encourage you to keep your car see, you may be entitled to a grace period to renew the design. Read ahead to understand the think of and importance of the car policy grace period and how it can affect claims. Motor insurance is a condense between the policyholder and the insurance company ( ACKO ) that needs to be renewed on or before the death date. An insurance policy lapses when you fail to renew your policy before the due date. An expired indemnity policy could put you at fiscal risk should you be involved in an accident or mishap .

Meaning of grace period in car insurance

The grace period in car indemnity is the amount of time the ACKO allows you to renew the policy policy before you lose the policy ’ s benefits. During this period, you continue to enjoy benefits such as the No Claim Bonus ( NCB ) you might have earned for not raising claims. however, your car remains uninsured during the grace period ; hence, you are not eligible for claims against your policy

While you may have extra clock time to renew the plan, it is vital to keep your car insured at all times. unanticipated mishaps such as floods, cyclones, riots, vandalism, or in shell car larceny can wreak havoc on your finances. Keeping your car insured at all times will protect you from fiscal losses during unanticipated events. additionally, renewing your policy within the due date will avoid inspection of the vehicle, which might be required if there is a considerable col between the policy death and reclamation date. At ACKO, you can renew the design without any hassles. We keep you updated about the condition of the policy and remind you when it is clock to renew it. You can quickly renew the plan through our web site or mobile app .

What is the duration of the grace period in car insurance?

The grace period for car insurance refilling is typically from 15 to 30 days, depending on the terms and conditions mentioned in the policy. While you can renew the car indemnity after the grace period, you may have to pay the punishment or late fee apart from losing benefits such as NCB .

Consequences of not renewing the insurance policy

As per The Motor Vehicles Act, 1988, driving a car on indian roads without Third-party policy Policy is illegal. here is what happens if your policy policy expires .

  • No overlay and claim : No cover means you can not raise any claims. In case of damages to your car, ACKO is not liable to compensate for the passing .
  • Legal fuss : Driving your uninsured car will invite fines or penalties by the traffic patrol. A reprise offense will invite harsher penalties or tied a imprison term .
  • Loss of NCB : The rebate you earn for not raising claims during the period will mechanically stand canceled if you do not renew it within 90 days from the death date .
  • scope for inspection : Since the policy has expired, your car may have to be inspected before ACKO can consider the policy for refilling .
  • No third-party cover : In font of an accident where a third party is involved, you have to bear all the expenses .

Benefits of renewing car insurance within the grace period

hera are the advantages of renewing car indemnity within the grace period .

  • Get to keep the NCB : If you renew the plan within the ascribable date of the grace menstruation, you get to enjoy the NCB you have earned .
  • Reduce any electric potential premium increase : By renewing the plan within the death date of the deck menstruation, you get the benefit of avoiding an increase in the premium .
  • The policy remains active : During the grace period, the policy continues to be active ; however, you are not covered against damages to the car or third-party liabilities. While you can not raise claims, you continue to enjoy the benefits of NCB for 90 days from the date of termination .

How to renew an expired car insurance

If inspection is not required to renew car policy, you can renew the plan without hassles. This is potential because of ACKO ’ s smooth on-line serve. here is the process to renew the car indemnity from ACKO. New customers

  • step 1 : Download our mobile app or visit our web site .
  • tone 2 : Enter details of your vehicle and previous policy ( if available ) .
  • measure 3 : Select the design or continue with the existing plan, pay the premium, and instantaneously receive the policy document.

Existing ACKO customers

  • mistreat 1 : Access your report via our web site or fluid app .
  • step 2 : Choose the policy card of your vehicle and snap to renew or change the plan .
  • pace 3 : Pay the premium and receive the policy document .

Car inspection process

If ACKO needs to inspect the car before renewing car policy, hera is the cable car inspection action for renewal .

  • tone 1 : You can call us or visit our web site to initiate the refilling march .
  • step 2 : ACKO will set up a time with you to inspect the car .
  • step 3 : Provide all details asked by our accompaniment team assigned for the inspection. After the inspection, we will create a custom-made quote to insure your cable car .

Things to do when your car insurance has expired

here is a list of action points if you find yourself in a situation where your policy has expired .

  • contact ACKO : Let us know that your stream policy has expired and you want to renew it. This can be done through our web site or mobile app .
  • Don ’ t drive : Driving an uninsured vehicle on public roads can lead to legal issues. Park it in a condom invest so that it has minimal chance of getting damaged. An exhale policy will not cover damages until it is renewed .
  • Renew a soon as possible : guarantee that you renew the design at the earliest to avoid unanticipated fiscal troubles .
  • Review your plan : Review the screen for better coverage and include add-ons to protect yourself against specific damages or losses to your cable car .

besides, read : Car Insurance inspection : Guide on the Claim Inspection Process

Frequently asked questions

hera are some normally asked questions about the seemliness period in car indemnity. faqIconIs there a government law for the grace period in car insurance? All insurance policies should be renewed by the due date. Driving an uninsured fomite is a traffic crime and attracts penalties. however, insurers can provide a grace time period for the policyholder to renew the plan subject to the terms and conditions of the policy .Will I lose my No Claim Bonus (NCB) if my car insurance policy expires? You continue to enjoy the NCB earned during the policy period if you renew the plan within 90 days from the due date .Can I buy a car insurance plan from ACKO if my previous policy has expired? Yes, you can renew your run out car policy policy. You can insure the vehicle by buying it from our web site or mobile app.

My previous policy has expired. Can I switch to ACKO to buy car insurance? Yes. At ACKO, you can buy policy for your car even if the former policy has expired. Provide a few details of your vehicle, location, and the year of manufacture so that we can create a custom cable car quote for your cable car .What is the grace period in insurance for a new and a used car? The deck time period offered by insurers is for the reclamation of the indemnity policy. consequently, there is no difference in the grace period for a new or a use cable car .

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Category : Finance

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