All You Should Know About Multi-Year Car Insurance
As per the Indian Motor Tariff 2002, to be allowed to travel on the Indian highways, it is mandatory for new car owners to have a 3-year third-party car insurance policy. In addition to helping you meet the legal necessity, multi-year motor insurance gives you comfort in the way that every year you do not need to go through all the paperwork and verification issues.
Buying a 3-year third-party liability policy is compulsory for all new cars. While you can obtain such a package from the car dealership itself, to find the best price, it is often advised to review multi-year motor insurance policies online.
Owners often prefer to purchase annual plans when it comes to old vehicles. It may be a smarter option, though, to look for a multi-year motor insurance policy for old cars as well. While at the moment you will have to fork out a higher premium amount, in the long run, it may provide you with several benefits.
Benefits of Multi-Year Car Insurance Policy
Getting a multi-year motor insurance policy comes with a variety of benefits, the main is to provide you for a prolonged period of time with a financial backup.
- No Need to Renew Your Policy Yearly: It is true that in contrast to paying or renewing it every year, the one-time premium fee on your multi-year motor insurance would be higher. However, you are spared from renewing your motor insurance yearly. When you jointly pay in advance for your insurance policy, you will be free for several years to continue receiving the benefits of your motor insurance policy.
- Escape the Price Hike: Every financial year, the Indian government increases the premium price of your third-party motor insurance policy. It makes a single year's premium amount more than the amount of the prior year, thereby making the policyholder compensation higher than he or she did last year. When you have a multi-year motor insurance policy, this question is resolved.
- Discount: You will get a discount by buying a multi-year motor insurance policy because you pay the premium of three years at once, possibilities are that the insurer will compensate you with a substantial discount.
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Takeaway
In a summary, ensure you apply for a multi-year motor insurance policy by reaching out to the car insurance provider. Based on a variety of factors, various companies provide specific insurance rates for third-party and comprehensive coverage, the main being the cubic capacity of the car. Compare the terms and conditions related to different firms and validate which agreement meets the personal and financial needs better, and then go with an acceptable one.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
