Grace Period in Car Insurance & Its Importance

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Purchasing third-party car insurance is mandatory but purchasing comprehensive car insurance is necessary. Third-party insurance provides cover for third-party liabilities only but comprehensive car insurance provides cover for all kinds of casualties. However, be it third-party or comprehensive, both come with an expiry date. If you fail to renew the policy on time, it can put you under financial burden at the time of any road accident.

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      Even then the insurer not just cancels your insurance policy but provides a little bit of time known as a grace period to renew your policy. This way they try to encourage people to keep their cars insured. So, what is the meaning of a grace period?

      Car Insurance Grace Period

      Grace period is a certain specified period of time that is provided by the car insurance company for you to renew your policy after the expiry date of your plan. You can even enjoy the benefits of the No Claim Bonus during this period that you might have earned in your previous years for not raising claims.

      Let me explain how? So if you have earned a certain percentage of discount on your premium amount for not raising a claim your previous year then that discount will be applicable if you renew the policy during the grace period. However, you won’t be able to raise a claim during the grace period.

      Even though you get the extra time to renew your policy, it is important to keep your car insured at all times because unforeseen situations like cyclones, riots, theft, etc. might take place. If you make sure to keep your car insured at all times then you will get financial aid for any unforeseen loss or damage. Also, the insurer will not send anyone to inspect the vehicle if you renew the policy before the expiration date.

      Duration Of Grace Period

      Grace period in a car insurance policy is usually 15-30 days. It depends on the terms and conditions of the policy of your insurance company. You can also renew your policy after the grace period but you will have to pay an extra amount.

      What Can Happen If You Don’t Renew Your Policy On Time

      Here are some of the reasons for not renewing the policy on time.

      • The insurance company will not be liable to provide any cover or accept any claim if you do not renew your policy on time.
      • It is mandatory to keep your active car insurance policy with you while driving so not renewing the policy can put you in legal trouble as well.
      • You can lose your No Claim Bonus that you might have earned for not raising a claim in your previous years if you do not renew the policy after the expiry date within the grace period.
      • If the insurance policy expires then the insurance company will again send an inspector to renew the policy.
      • You will be liable to pay for the third-party liability out of pocket if you do not renew the policy on time.

      What Benefits You Will Get To Renew The Policy On Time

      Here are some of the benefits if you renew the policy on time.

      • The first and foremost benefit of renewing your policy on time is you get to keep your No claim bonus that you might have earned.
      • The insurance company will provide you the policy at the same premium rate.
      • The policy remains active during the grace period but there is a catch that the car will not be covered for any damage or loss. You cannot raise a claim during a grace period but you can get the benefit of NCB.

      Let us now tell you how can you renew your policy online.

      Car Insurance Policy Renew Online

      You can utilize the internet and renew your insurance policy online. Here are the steps to renew your policy online.

      • Visit your insurance company’s official website.
      • On the next page, you will be asked to provide several things like the Insurance plan name, vehicle number, registered mobile number, etc.
      • If you want to opt for some other plan then you can search for it and continue with that one.
      • When you press enter, it will take you to the payment page where you will get the options through which you can make your payment.
      • You can make your payment by Debit/credit card, internet banking, and UPI.
      • Once you make the payment, you will get a confirmation message on your registered mobile number.

      What Is The Process For Car Inspection?

      If you do not renew your policy on time then the insurer will provide you the benefit of a grace period. If you do not renew the policy within the allowed grace period then the insurer will send an inpector to inspect your car.

      You will have to provide your car insurance details and car model. Once the inspection is done, the insurer will generate a quotation to insure the car.

      What To Do If The Insurance Expires

      There are certain things that you will have to keep in mind in case your insurance policy expires.

      • Contact your insurer and tell them about the expiration of your policy. You can contact them through the website, call, or email.
      • Do not drive your car until your car insurance is renewed otherwise you might attract legal actions against you.
      • You can review your insurance plan and check if you want to change your plan or add on some riders.


      It is important that you renew your policy on time for continuous coverage and hassle-free services of your insurer. Not renewing the policy on time car brings a lot of difficulties towards you. Since it is easier to renew your insurance policy online, insurance experts recommend purchasing the policy online as apart from renewing the policy you can calculate the premium rates and compare different plans while sitting at the comfort of your home without any kind of hassle.

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