Motor car insurance is a contract between the policyholder and the insurer that must be renewed on or before the policy’s expiration date. When you fail to renew your insurance policy by the due date, it lapses.
If you have an expired insurance coverage, you may be financially vulnerable if you are involved in an accident or incident.
Grace periods for car insurance vary by company and coverage type. However, not all insurance firms provide grace periods to their consumers. You may look up your policy’s due date and see if it contains a grace period by looking at it.
If your employer offers a grace period, your policy will spell out how long it lasts and what penalties you’ll face if you use it. It will also tell you if you can file a claim if you pay your account inside the grace period.
You may be entitled to a grace period to renew your car insurance policy in order to encourage you to keep it insured. Read on to learn about the purpose and significance of the motor car insurance grace period, as well as how it affects claims.
What does the term “grace period” mean in the context of Motor Car Insurance?
The grace period in vehicle insurance refers to the amount of time you have to renew your coverage before you lose your advantages. You will continue to receive advantages such as the No Claim Bonus (NCB) you may have earned for not filing claims during this time.
During the grace period, however, your automobile remains uninsured, so you are not eligible for any claims under your policy.
While you may have some additional time to renew your policy, it is critical to maintain your vehicle covered at all times. Unexpected events like floods, cyclones, riots, vandalism, or auto theft can devastate you financially.
Having your automobile insured at all times protects you from financial losses in the event of an accident. Furthermore, renewing your insurance by the due date avoids the need for a vehicle inspection, which may be necessary if there is a significant gap between the policy expiry and renewal date.
You may renew your plan with MGS without any problems. We keep you informed about the status of your policy and remind you to renew it when the time comes. You may easily contact us on our website.
When it comes to vehicle insurance, how long does the grace period last?
The grace period for vehicle insurance renewals ranges from 15 to 30 days, depending on the policy’s terms and conditions. While you may be able to renew your auto insurance after the grace period, you may be subject to a penalty or late fee, as well as the loss of benefits such as NCB.
The ramifications of not renewing your insurance policy
- No coverage and no claims: If you don’t have any coverage, you won’t be able to file any claims. MGS is not obligated to pay you in the event that your car is damaged.
- Driving an uninsured car will result in fines or penalties from the traffic police. Repeat offenses will result in higher penalties, including possible jail time.
- NCB loss: If you do not renew your NCB within 90 days of the expiration date, the discount you earned for not filing claims during the period will be immediately canceled.
- Inspection scope: Because your policy has expired, your car may need to be inspected before MGS will consider renewing it.
- No third-party coverage: In the event of an accident involving a third party, you are responsible for all costs.
The advantages of renewing your auto insurance during the grace period
Here are some of the benefits of renewing your auto insurance during the grace period.
- Keep the NCB: If you renew your plan during the grace period’s due date, you’ll keep the NCB you’ve earned.
- Reduce any potential premium increases: By renewing the plan before the grace period expires, you can avoid a premium rise.
- The policy stays active: The policy remains active during the grace period, but you are not protected for vehicle damage or compulsory third-party liability. While you won’t be able to file claims, you’ll still be able to use NCB for another 90 days after it expires.
Things to do when your car insurance has expired
If you find yourself in a situation where your insurance has expired, here is a list of things to do.
- Please notify MGS that your current insurance has expired and that you wish to renew it. This can be done on our website or through our mobile app.
- Don’t drive: Using a car that isn’t insured on public roads can result in legal problems. It should be parked in a secure location with little danger of being harmed. Damages caused by an expired policy will not be covered until it is renewed.
- Renew as soon as possible: To avoid financial difficulties, make sure you renew your plan as soon as feasible.
- Examine your policy for better coverage, and consider adding add-ons to protect yourself against specific damages or losses to your vehicle.
How to Reduce Auto Insurance Premiums
If you are facing financial difficulties and are unable to pay your auto insurance premiums, the Insurance Information Institute offers the following suggestions for lowering your monthly premium:
- Remove extra coverage: Car insurance companies offer options other than full coverage that you can add to your policy, and you may not even need full coverage. Examine your insurance to ensure that you fulfill the state’s minimum standards and to eliminate any unnecessary coverage.
- Make sure you’re getting all of the discounts you’re eligible for by speaking with your insurance provider. Bundling policies or taking a defensive driving course can typically save you money. Some businesses will also give you a discount if you drive safely.
- Look for a better deal: Another option to save money on premiums is to shop around. Compare the prices of numerous companies and pick the one that best suits your needs and budget.
- Increase your deductible: Requesting a larger deductible is one of the simplest methods to lower your monthly cost. Your deductible is the amount you must pay out of pocket before your insurance kicks in.
Your insurance company will lower your premium if you can pay more in the event of a claim. Increasing your deductible from $200 to $500, for example, can save you up to 15% to 30%. If you get into an accident, make sure you can afford the deductible.