Do you know what is the month of grace of the insurance of your car or motorcycle?

The insurance policy is a procedure that must always be kept up to date and well updated, since you never know when a mishap may occur in which your vehicle is the protagonist. The fines for driving without the corresponding insurance for the car or motorcycle exceed 3,000 euros and the mandatory minimum coverage is the one that pays for damage to third parties.

What happens when the contract expires? Usually, these types of policies are automatically renewed once their validity period has expired. However, this renewal depends on the payment of the insurance cost. In other words, if the price corresponding to the service is not paid, the contract is terminated and the driver, without coverage.

To avoid that, in the case of not being able to face or be late in paying the annual fee, insurers offer their clients the so-called month of grace. It is an extension during which the vehicles remain covered even if the contract has already expired or the owner has not yet made the payment.

Repairs, with payment

Many customers, as explained by the online comparator Rastreator, understand this extension as a ‘free’ month during which the company continues to cover them until they pay., Nothing could be further from the truth. Once the amount due is paid, the start date of the contract and, therefore, the valid duration of the same It will be established with the expiration date of the previous agreement as a reference.

If during those 30 days of margin for payment you suffer some kind of mishap or traffic accident, the insurer will take care of the costs once the client has paid the new annual fee. In the event that, once the grace month is over, the client has not paid the payment, the insurer may claim the money through the courts, not cover the damage caused in the event of an accident and, above all, the vehicle will cease to be covered.

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