All vehicle owners in India need to mandatorily follow the provisions of the Motor Vehicle Act 1988 and the rules set in place by the IRDAI. According to current regulations, all new car owners must buy long term car insurance with up to 3 years of validity to stay safe from legal and financial complications. There are also numerous benefits of having a long-term car insurance policy. Continue reading to learn more!
What is Long-Term Car Insurance?
A long-term car insurance policy is a car insurance policy that stays valid for more than one year. These policies are generally valid for up to three years, offering extended car insurance coverage without having to renew your policy every year.
5 Key Benefits of a Long-Term Car Insurance Policy
Convenience:
If you are someone who often forgets to renew your vehicle insurance policy, then a long-term car insurance policy is for you. This policy assists you in staying away from the hassles of renewing your car insurance policy since you do not need to renew your policy every year.
Discounts On Premium
When a person purchases a long-term car insurance policy, he/she is required to pay the premium for multiple years at the time of purchase. Insurance companies offer discounts on the total premium amount. Hence, purchasing a long-term car insurance policy helps the car owner in cutting down their overall long-term car insurance cost.
Damage Protection
A vehicle owner is legally bound to have a long-term car insurance policy with third-party coverage. If they fail to buy a policy, they will face legal complications. Remember that driving your car without an insurance policy is considered a punishable offence under the Indian Penal Code. Also, if your vehicle is in an accident, you would have to bear all the expenses for the damages caused to your vehicle as well as the third party’s vehicle. That is why, to avoid all these issues, it is advised to have a multi-year car insurance policy.
No Claim Bonus (NCB)
NCB is the discount on your insurance premium that you can get on renewal. With extended car insurance coverage, you can gain a higher NCB than with a standard car insurance policy. Most importantly, you can transfer your NCB to your new policy as well.
Better Financial Planning
A long-term car insurance policy helps you manage your finances in a much more efficient way. You can have greater control over your expenses and avoid unexpected cost increases. As the premium stays fixed for several years, you stay protected from yearly price hikes due to regulatory changes and inflation. This allows you to budget properly without worrying about car insurance costs.
Conclusion
That’s all! Buying a long-term car insurance policy in India has plenty of benefits, making it a worthwhile investment. From convenience and cost savings to enhanced protection and legal protection, a long-term motor insurance policy is crafted to fulfil the evolving needs of vehicle owners.
