You must have car insurance coverage, particularly third-party car insurance. It covers you from any third-party liabilities arising in case of an accident.
Your car insurance coverage has a defined tenure of validity, ranging from one year to three years. It is essential that you renew your car insurance online on time to avoid any penalties and continue to enjoy the coverage benefits.
Multi-year and Long-Term Insurance?
That is why it is typically recommended to purchase long-term comprehensive car insurance coverage. A long-term comprehensive car insurance coverage protects you against third-party claims while also protecting your vehicle from damage and compensates you in the event of personal injury or death. Additional perquisites and add-on riders provide comprehensive coverage and assistance for a wide variety of on-road scenarios.
Long-term car insurance coverage has a number of advantages over other types of insurance available to car owners. It is especially advantageous for individuals who frequently miss renewal deadlines and face financial consequences.
The advent of multi-year car insurance
The supreme court in 2018, made it mandatory for all to have a three-year third-party car insurance policy. This is done to ensure that better and longer durations of protection can be provided in case of an accident by the car owner. Unlike third-party insurance, comprehensive car insurance can be bought for a year and then renewed yearly. This however makes the process further tiresome for the car owner. He now has to possess a separate third-party cover and renew his compressive cover every year.
In solution to this problem, insurance companies have come with multi-year or long term insurance policies. These long-term or multi-year car insurance policies provide extended coverage for three years without having to worry about renewals or claims. Below are some more benefits of long-term car insurance.
Benefits of Long Term Car Insurance Policy
You can enjoy the following benefits when you buy long-term car insurance online/offline:
MIssing the renewal date can be frustrating. It can furthermore cause you to lose on some important benefits or the entire car insurance coverage itself. And since car insurance companies are very adhering to such rules, insurance renewal on time becomes crucial. Long-term car insurance eliminates the need to renew coverage each year. These policies can be a lifesaver for people in high-stress professions and those juggling multiple commitments.
Some Car insurance companies require a thorough check of the car before providing a policy for the following year when renewing the policy every year. Such issues can be avoided with long term insurance.
2. Reduced Risk
In case of non-renewal and possibly losing the car insurance, there can be an array of unmanageable expenses arising. In such a case the cost of fixes and repairs is to be borne by the owner. These expenses can further intensify in case the car meets an accident. Long-term car insurance saves you from these risks.
Each year, when you renew your insurance coverage, you may be compelled to get your vehicle examined. By choosing a three-year auto insurance coverage, you save time and money.
3. Protection From Price Hikes
Insurance companies renew their prices almost every year and this mostly results in the hike of policy prices. By buying long-term car insurance online, you can save 20-40 % of such on annual renewal charges.
4. Additional Discounts
Multi year car insurance coverage can be costly; as a result, the insurance provider may offer a discount on a three-year policy. If your car is equipped with an anti-theft device, you are a special needs driver or a member of a recognised automobile organisation, you may be able to further reduce your premium.
5. Transfer of No-Claim Bonus
With a long-term policy, if no claims were made the previous year, the no-claim bonus can be carried over to the following year. Certain insurers may offer a greater No-Claim bonus on long-term insurance than on short-term policy. Also, if you sell your vehicle or purchase a new vehicle during the policy period, you may transfer the accumulated no-claim bonus (NCB) to the new vehicle.
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