The effective date in insurance is the specific day when your coverage begins. This is an important date because it determines when you are eligible for benefits and when your policy is officially in force.

For example, if you have a car insurance policy with an effective date of January 1st, you are not covered for any accidents that occur before that date. However, if you get into an accident on January 1st or after, your insurance will be in effect and you may be eligible for coverage.

The effective date of your insurance policy is typically listed on the formal document, along with other important information such as your policy number and premium amount.