An insurance year starts when you conclude the contract and ends after 12 months. It is a term used by insurance companies to define the contract period.
Another term that insurance companies use is “calendar year.” A calendar year starts on January 1st and ends on December 31st of the same year.
Example: Suppose you took a policy on 12th December 2023. In this case,
- Your first calendar year will be finished on 1st January 2024 (in 19 days).
- Your first insurance year will end on 11th December 2024 (in 365 days).
Synonyms:
insurance year