Multi-Year And Long-Term Car Insurance: What You Need To Know
As per the Indian Motor Vehicles Act of 1988, all cars on Indian roads must have minimum third-party car insurance. However, basic liability insurance only covers claims from the other party in an accident and doesn’t provide financial support for the policyholder.
Long-Term And Multi-Year Car Insurance?
Opt for a long-term, comprehensive car insurance policy to ensure full protection. This coverage includes damage to your car, compensation for injuries or fatalities, and third-party claim coverage. Additional benefits and riders provide comprehensive defence for various on-road situations. It is essential to understand the difference between different types of car insurance. Claims are subject to terms and conditions set forth under the motor insurance policy. *
The Introduction Of Multi-Year Car Insurance
Any car insurance typically has a one-year validity period starting when the policy was issued. On the other hand, the Supreme Court ordered in July 2018 that third-party liability be covered for three years on all new motor insurance policies. This was implemented to increase the penetration of motor insurance and enhance assistance in the event of an accident.
A comprehensive cover can be purchased for a single year at a time, but a third-party liability cover must be issued for three years. This makes the process much more laborious because having a separate insurance policy for third-party liability and another renewed yearly for comprehensive coverage is challenging.
Some general insurance providers have addressed this problem by launching multi-year car insurance policies that make obtaining comprehensive protection for all parties easy, convenient, and reasonably priced.
What Advantages Come With Having Long-Term Car Insurance?
- Convenience: As we’ve already seen, a multiyear car insurance policy spares you the headache of having to renew your coverage every year and lets you take advantage of comprehensive insurance coverage for up to three years at a time.
- Minimal Compliance Issues: Some policies require an annual vehicle inspection when renewing Bajaj Allianz car insurance. You may avoid wasting time and effort on these steps by purchasing a three-year policy for car insurance.
- Protection From Price Increases: The government sets the annual premium price for third-party insurance, which can add up over time. You can save 20–40% on yearly renewals for third-party coverage and lock in a fixed premium for three years by getting long-term car insurance. ##
- Extra Savings: Acquiring a multi-year car insurance policy can be costly; therefore, the insurance company might provide a concession for a three-year policy as a means of enticement. You can also lower your premium if you drive a special needs vehicle, belong to an accredited car club, or have installed an anti-theft device in your car. ##
- Transfer Of NCB: If you sell your car or buy a new one at any point during the policy’s term, you can transfer your no-claim bonus (NCB) to the new vehicle and receive a concession on future premiums. *
- Maturity Benefits: Long-term car insurance policies may offer added perks, such as loyalty rewards and discounts, which mature over the policy’s term, providing extra value for maintaining coverage.
Of course, the policy has its exceptions. These include any loss or damage outside the designated area and any damage brought on by nuclear, armed, or other events. Even though most policies have comparable exclusions, for a hassle-free experience, think ahead and choose long-term comprehensive Bajaj Allianz general car insurance. *
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*Standard T&C Apply
##All savings are provided by the insurer as per the IRDAI-approved insurance plan.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
