Long Term Comprehensive Car Insurance for 3 Years

In 2018 Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory for all new cars sold after 1st September 2018 to have at least a 3-year third party insurance policy. It is one of the landmark moves in the car insurance industry as it offers long-term insurance coverage to the cars and saves the policyholders from the inconvenience of renewing the insurance plan yearly.

Third Party Premium Rates for 3-Year Car Insurance Plans

(*Source: Insurance Regulatory and Development Authority of India)

Ways of Opting For The Mandatory 3-Year Third Party Car Insurance Plans

A long-term car insurance plan valid for three years can opt in the following manner:

1. Buying a third party insurance policy valid for a total of 3 years
2. Buying a third-party insurance policy valid for 3 years along with a standalone own-damage cover valid for required tenure.
3. Buying a bundled car insurance containing a 3-year third party cover + 1-year standalone own damage cover.

A 3-year third party car insurance plan comes with the following features:

• Longer Validity: It ensures long-term protection with no requirement for yearly renewals.
• Economical Option: Purchasing a three-year third-party policy is much more feasible and cheaper as compared to renewing the same plan yearly.
• Portability: Even after getting your insurance plan renewed for 3 years, you are still provided the option to change your insurance provider during this tenure.
• NCB Transfer: During the policy term, if the policyholder decides to sell their car or buy a new one, then the accumulated no claim bonus can be transferred to the new car to receive the benefits of discounted future premiums.

Advantages Of Three-Year Car Insurance Plans

A long-term car insurance policy valid for 3 years offers the following benefits:

1. No Car Insurance Renewal Needed Every Year: Although, you are required to pay more premium amounts, you are paying it for three years altogether, which means you do not have to worry about renewing your car insurance every year. All that is needed from your end is to pay the premium amount once and get worried less from the hassle of getting the policy renewed for the next 3 years.
2. No Hike in Premium: Rates of third party insurance are increased every financial year by IRDAI. However, all the policyholders who have paid their premiums in advance are not required to worry about the price hike.
3. Minimum Compliance Issues: A car inspection is required every year by car insurance companies in case you renew your car insurance policy during the 90-day period post expiry of the policy but with three-year car insurance, your time and efforts are saved from going through these procedures yearly.