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Break-in Period in Car Insurance: All You Need To Know

Team AckoJan 17, 2024

Owning a car without an insurance policy can be financially risky, especially if you are involved in an accident with a third party or your vehicle sustains losses due to a mishap such as flooding or such natural calamities.


That being said, you may forget to renew the insurance on time due to unavoidable circumstances. While the policy becomes inactive, you still have a specified period known as the break-in period or break-in car insurance to revive the status of your policy. Read on to learn about the term break-in period in car insurance and how it affects your coverage and premium amount.



What is a break-in period in car insurance?

A break-in period in car insurance is the period between the expiry date and the renewal date. For example, your car insurance policy expires on 30th August, and you renew it on 11th September. There are 10 days between the expiry date and the renewal date where your policy remains inactive. That 10-day time frame is known as the break-in period.

Myths about car insurance break-in period

Here are some of the myths about break-in insurance and how to respond to it.

Myth No. 1: You cannot renew the policy during the break-in period. Plus, you may have to purchase a new plan. 

Reality: You can renew the plan during the break-in period and continue with the same insurance plan. While you can renew the plan, you will lose benefits such as the No Claim Bonus (NCB) if you do not renew the policy within 90 days from the expiry date.

Myth No. 2: You are eligible to raise claims during the break-in period.

Reality: The policy remains inactive during the break-in period, and you cannot raise any claims. While you have 90 days from the expiry date to renew and continue with the policy, you are ineligible to submit claims.

Myth No. 3: You cannot avail of the No Claim Bonus discount that you receive on the renewal premium for not raising claims during the previous policy period.

Reality: You get to take advantage of the NCB if you renew the plan within the 90-day break-in period.

Myth No. 4: Voluntary deductibles are applicable along with the compulsory deductible.

Reality:  A deductible is a fixed amount of the repair cost that you need to pay from your pocket. There are two types of deductibles: compulsory and voluntary. You may assume that if you renew the plan during the break-in period, you have to continue with the existing deductible (voluntary). However, that is not the case. Only the specified compulsory deductible is applicable and not the voluntary deductible while you renew the policy.

Implications of not renewing your car insurance during the break-in period

The break-in period is the duration between the expiry date and the date of renewal of the car insurance. You still get to enjoy benefits such as the No Claim Bonus for 90 days from the expiry date. However, if you do not renew the policy within 90 days, you will lose the accumulated NCB benefit.

For a policy that has expired beyond 90 days, the policy is considered closed, and you have to buy a new policy for your vehicle. Your car will also require an inspection before the policy is renewed. A renewed policy after 90 days is considered a brand new policy, and the accumulated NCB will expire.

Also, read: Difference Between Car Insurance Non-renewal and Cancellation

Disadvantages of a break-in period in motor insurance

Here are some of the effects of a break-in period in vehicle insurance.

Driving a vehicle during the break-in period on public roads is a legal offence. It is mandatory to insure the car with Third-party Insurance as mandated by The Motor Vehicles Act, 1988, to drive on Indian roads.

Monetary fines are levied on those who drive their four-wheeler without a valid motor insurance policy. If the vehicle is involved in an accident where a third party is injured, you may have to face legal implications. You can easily renew Third-party car insurance online since you can insure your vehicle instantly.

2. Financial security implications 

The primary goal of insurance is to secure yourself against financial losses arising from accidental damage. If your car is damaged during the break-in period, you have to bear the financial burden.

Ensure that you renew the policy on time to avoid such unforeseen financial losses. With digital insurance companies such as ACKO, you can renew a car insurance plan instantly through the digital platform. You can visit our website or download our app to renew the policy instantly.

Benefits of renewing car insurance on time

Here are some of the benefits of renewing your four-wheeler insurance on time.

  • Your car is insured at all times: You avoid a break-in period and a gap in the policy coverage by keeping your vehicle insured.

  • Your NCB is intact: The value of the NCB increases for every claim-free year. You get up to 50% for 5 consecutive years and more. You can even transfer the NCB from one insurer to another at the time of renewal.

  • Avoid legal liabilities: Since Third-party Insurance is mandatory by law, an expired vehicle insurance policy makes you liable against legal implications.

Frequently asked questions

Here are some commonly asked questions about the break-in period in car insurance.


Is there any grace period in car insurance?

Yes. There is a grace period in car insurance. However, it varies between insurance companies. During this period your policy remains inactive and you cannot submit claims. You continue to enjoy the benefits of NCB for 90 days from the date of expiry, post which the discount will expire.

What is the policy period in car insurance?

The duration of the car insurance policy is the policy period. The duration is the time between the exact date and hour of the policy inception and its expiration.

How much is the penalty for expired car insurance?

If you are found driving a car with expired insurance, the penalty for the first offence is Rs. 2,000 and/or imprisonment of up to 3 months. It is Rs. 4,000 and/or imprisonment of up to 3 months for the second offence. Please note that penalties for driving without valid insurance may change as per the amendments in The Motor Vehicles Act.

How fast can I get insurance for a car?

You can insure your car instantly through digital insurers such as ACKO. The process is entirely paperless, and the digital platform offers a hassle-free experience. Share a few details of your car and previous policy (if available) to know the insurance price for your vehicle.

Will there be an inspection during the break-in period in car insurance?

Most insurance companies will inspect your car before renewing your expired policy. It is important to check with the concerned insurer whether your car will be inspected before renewing the plan.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.


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