Long-Term Car Insurance’s What It Is and What Its Benefits Are

Vehicle owners across the nation are required to comply with a mandate. The Motor Vehicle Act of 1988 requires all vehicle owners to buy third-party liability insurance. This is simply a type of vehicle insurance designed to protect third-party people in the event of a road mishap resulting in bodily harm, vehicle or property damage, or death. Others would rather buy a comprehensive vehicle insurance policy, which, while not required, provides more than third-party liability coverage. Vehicle insurance policies are usually good for a year. However, most people find it extremely inconvenient to update their insurance year after year. Long-term car insurance can help such individuals.

What Is A Long-Term Insurance Policy?

A long-term insurance policy, as the name implies, is one that has an extended period of validity. The Insurance Regulatory and Development Authority of India (IRDAI) and the Supreme Court of India mandated that all new vehicle owners buy long-term insurance policies as of September 2018. These insurance plans would have three to five-year terms. People who purchased vehicles before September 2018 can, however, take advantage of this policy and select long-term car insurance, bike insurance, and so on.

Benefits Of Purchasing Long-Term Vehicle Insurance

• It is very convenient: As previously stated, renewing insurance plans every 12 months is a pain. Most of us have hectic schedules that cause us to overlook the precise dates for renewing insurance policies. As a result, it is common for people to neglect to renew their policies, resulting in the loss of benefits such as no claims or premium discounts. If you can relate to this situation, you should consider purchasing a long-term auto insurance policy.

• No need to worry about policy renewal and lapsing: If a policy is not renewed on time, it can be an enormous hassle. When insurance expires, you cannot renew it online, nor can you simply buy a new policy to remain insured. In reality, you must go through the complete process of renewing your insurance, which includes submitting your vehicle for inspection, filling out mountains of paperwork, having the insurer evaluate the value of your vehicle, and so on. You don’t have to stress about your policy expiring or being renewed with long-term insurance.

• You can avoid the risks that come with non-renewal: Driving without valid insurance coverage, even for a single day, can put you in danger. Remember that traveling without insurance is a punishable offense under the Indian Penal Code, and you will not be covered if something goes wrong. Furthermore, traveling without insurance exposes you to a slew of legal and financial ramifications. If your bike or car is involved in an accident, you will be responsible for all damages to your vehicle as well as those to a third party, his vehicle, or his property if you do not have legitimate insurance. It is best to obtain long-term car insurance benefits to prevent driving your car without insurance for even a single day.

• Huge discounts on premiums: Another advantage of buying long-term vehicle insurance policies is that many insurance companies offer significant discounts on their damage premiums. This is because car insurance policies help insurers greatly reduce administrative and policy issuance costs. As a result, these savings are passed on to policyholders, who can profit from them.

• Transfer of No Claim Bonus (NCB)

Some long-term car insurance policies provide a greater NCB than short-term policies’ cumulative NCBs. Furthermore, if no claims were made in the previous year, you can transfer your NCB to the following year with long-term insurance coverage.

• Discounts:

Long-term vehicle insurance policies are more expensive than annual insurance plans due to longer commitments. They do, however, give discounts on policy amounts when purchasing long-term car insurance.

• Prevent Price Hikes:

A car insurance policy’s cost increases year after year, and they become more expensive over time. By buying a long-term car insurance policy, you can avoid price increases for at least three years and even save up to 40% on yearly renewals.