Everything You Need to Know About Multi-Year Car Insurance
Looking to purchase a long term car insurance policy? Make sure to read this article before you do.
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In recent times our lives have become increasingly fast-paced and busy. In such cases, remembering to renew the car insurance or deal with other similar paperwork can pile up and become an altogether cumbersome task. Multi-Year Car Insurance policies may be exactly what you need in such cases. It is hassle-free and simple to apply for. In this article, we will tell you about everything you need to know about multi-year car insurance policies.
What is a Multi-Year Car Insurance Policy?
Most car insurance policies are valid for one year and hence, must be renewed on an annual basis. Multi-year or long term car insurance policies on the other hand are valid for two or three years depending on the terms and conditions. When you purchase this type of insurance policy the premium amount will cover the cost of the entire duration in one go. This way you will no longer need to keep up with the annual renewal process and if there is any hike in the premiums for the annual policies with a multi-year policy you can stay clear of it.
What are the Types of Multi-Year Car Insurance?
There are three basic types of multi-year car insurance policies available in India:
- Long-term Third Party Cover: This type of insurance cover will take care of third party liabilities only in case of a mishap. This includes bodily injuries, death or property damage. Having third party insurance is compulsory for all cars driving on Indian roads. This type of insurance will take care of your basic car insurance needs for two or three years under a single premium.
- Long-term Third Party Insurance with Short Term Own-Damage Cover: You can also purchase a long term third party insurance cover along with an annual own damage cover. It will cost less than purchasing a long term comprehensive insurance plan and prevent any cases of expired third party insurance. Moreover, it allows you to purchase own damage covers as per your needs every year.
- Long-term Comprehensive Insurance: This type of insurance plan will take care of both your own damage costs and third party insurance for three years all under a single premium. A comprehehnsive plan is more expensive than the other two insurance policies mentioned above but, it will provide the best and most all-around protection from the uncertainties of the road.
What are the Benefits of Purchasing Multi-Year Car Insurance?
Following are the benefits of purchasing multi-year car insurance:
- Convenient: Many insurance providers expect the insurance holders to get their cars inspected every time it gets renewed. With a long-term plan, you can escape this annual formality. Secondly, you are also required to pay for the insurance in one go, hence, no risk of the policy expiring within a year. It is far less of a hassle than annual insurance covers.
- No Price Hikes: When you renew your insurance on an annual basis you often end up paying a higher price if there is an increase in the insurance rates set by the IRDAI. However, with long term car insurance, you can be sure that you will steer clear of such price hikes due to your policy.
- Discounts: In certain cases, insurance providers offer their customers purchasing a multi-year car insurance policy at better rates than annual insurance covers. Moreover, if you are a driver with special needs or if you are a member of some recognised automobile association of India the insurance provider will offer you a discounted premium.
- Transfer of No Claim Bonus: Three years is a relatively long time, hence, if in this period you choose to sell your car and purchase a new one any accumulated NCB can simply be transferred. Since the NCB is offered as an incentive for safe driving, it is attached to the owner-driver rather than the vehicle. Hence, the benefits will simply be added to the insurance policy of your new car.
In a nutshell, it can be said that purchasing a long term car insurance cover comes with several benefits such as lower premiums, hassle-free single premium payments and no price hikes. When purchasing your multi-year car insurance policy make sure to do so online. That way you can easily compare all the different car insurance companies, the quotes they offer and their network of cashless garages all within a few minutes. Moreover, if you need to renew your existing car insurance, this too can be done online, within a few moments and with little to no paperwork.
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.