Maybe you have typed in your web browser benefit period insurance or benefit period definition. If you want to learn about this topic, you have come to the right place. Here, you could learn the definition of benefit period when it comes to insurance.
The benefit of a car insurance policy is the amount your insurance provider would pay you out in case you filed a claim. The quantity of the benefit doesn’t depend on whether you have an expensive insurance premium or cheap car insurance under $100 a month. However, it could vary according to the claim you made and the terms and conditions settle on your policy contract. The benefit period definition is, basically, the period of definite coverage of your policy when a benefit could be paid.
What Is the Importance of The Benefit Period?
You should always know when you are covered by your car insurance and when you are not. There lies the importance of the benefit period.
Let’s suppose you are involved in an accident and, at that moment, you are not inside the benefit period of a particular policy. If that the case, your insurance provider would not pay you any benefits. Therefore, you will be legally responsible for all charges and damages that might result from the accident.
How Could You Verify Your Benefit Period?
You could know when your benefit period is by checking your insurance contract. To have the expiry date of your current policies marked in your calendar could be very useful for you. This way, you could always have insurance without gaps in your coverage.
The benefit period of your insurance could often be renewed automatically when the old period comes to an end. Of course, it depends on the balance of your bank account or your credit card. There should be enough money if the insurance provider tries to take your payment. Yet, even if you have sufficient funds, you should always verify that this payment has been made. The automated process might be interrupted by the office or bank errors. Generally, your insurance provider would try to get in touch with you when your payment has been declined. Still, you should not trust others because it is your own responsibility to have insurance.
In most cases, the benefit period could start on the day your insurance policy contract is accepted, and you make your first payment (could be the first installment or the cost of the whole policy in advance). Nevertheless, the beginning of your benefit period might be delayed. This could be done at the request of the insurer, or sometimes, the customer. According to the benefit period definition, you could be liable for expenses and damages if an accident happens and your benefit period has not yet started. So, you should be very careful and make sure your benefit period is commenced. Only then will you be successfully covered by your cheap weekly car insurance policy.