Car insurance is not only a legal mandate but a necessity in India. However, choosing between different types of car insurance policies and tracking the yearly renewals can be overwhelming.
Investing in long-term car insurance is recommended to resolve the issue of maintaining insurance coverage without the hassle of frequent renewals.
In this blog, we discuss the various long-term car insurance benefits in detail.
What is Long-Term Car Insurance?
A long-term car insurance policy, also known as multi-year car insurance, is a type of car insurance that offers coverage for an extended period, usually between two and three years.
As opposed to the traditional and standard car insurance policies that require yearly renewals, a car insurance long-term policy allows you to benefit from continuous coverage for a longer duration without the stress of every-year renewal.
Benefits of Long-Term Car Insurance Policy
Reduced Risk of Non-Compliance
Car insurance is mandatory for driving in India. Initially, the compliance requirement was limited to third-party car insurance. However, since August 2018, the IRDAI has made long-term car insurance plans necessary for all cars sold after August 2019.
Thus, investing in these plans not only ensures maximum continuous coverage but also guarantees complete compliance with traffic rules and regulations.
Reduced Pressure for Renewals
One of the most significant benefits of long-term car insurance is the reduced hassle and stress of yearly policy renewal.
With this type of car insurance, you can enjoy added peace of mind, eliminating the risk of losing coverage due to a missed due date.
Competitive Premiums
Long-term car insurance plans require a longer commitment, but you may get the benefit of more affordable long-term car insurance cost plans.
This is because some insurers use incentives like premium discounts for long-term car insurance plans to encourage more purchases.
Continuous Coverage
The traditional car insurance policy is valid for 12 months, and failure to renew it results in instant coverage loss.
However, with a long-term car insurance policy, you can benefit from a reduced risk of losing coverage as your vehicle is protected for a longer duration.
Higher Convenience
Driving is an experience to cherish, but often, due to the overwhelming details, renewal reminders, paperwork, and the choice of plans, you might feel more stressed than at ease.
However, with any long-term
comprehensive car insurance plan, you can enjoy your driving time without the worry of renewals.
Increased Flexibility
These long-term car insurance policies are commonly a bundle of third-party and own-damage plans.
Given this combination of coverage, some insurers also allow ample customisation flexibility to personalise your policy according to your specific needs for maximum coverage.
Cost Savings
Along with the benefit of discounted premiums, you can also save a lot of money on additional administrative expenses that come along with some insurer renewals.
Thus, with long-term car insurance plans, instead of a yearly payout of these expenses, you might only have to pay it every two or three years.
Tips to Choose a Long-Term Motor Insurance
Assess your Needs-
Consider your driving history, habits, frequency of travel using a car, location, etc., to determine the kind of coverage you require from a long-term car insurance policy.
You can choose a 3-year third-party insurance plan or a 3-year bundled policy that offers own damage and third-party coverage for a fixed duration.
Compare Policies-
Do not jump on the first plan you see. Spend some time researching and understanding what different long-term policies are offering to make an informed decision that is favourable for you and your car.
You can also use an online car insurance premium calculator to compare different plans in just a few clicks.
Review Exclusions-
Other than the policy inclusions that must be aligned with your requirements, you must also check the various policy exclusions to avoid claim delays and rejections in the future.
Check Insurer Credibility-
In addition to the insurance policy, you must also check the insurer's credibility.
You can do so by reading online customer reviews, claim settlement ratio, market image, and so on to choose an insurer that offers high customer satisfaction.
Look for Online Processes-
The insurance industry has also adopted digitisation, which makes it more convenient to buy, renew, and file claims for car insurance.
Thus, when choosing an insurer and policy, look for the ones that allow you to purchase and renew
car insurance online in a few steps.
Check Customer Support-
An insurer must offer proper customer support to resolve all your queries and complaints instantly. So, when choosing a long-term car insurance policy, check for available customer support and then make the final decision.
Conclusion
Investing in a long-term car insurance policy offers cost-effective premiums, convenience, peace of mind, and continuous coverage. However, you must assess your requirements before finalising any plan to ensure it aligns with your specific needs and budget.
Moreover, for informed decision-making, you must select an insurer that provides comprehensive coverage with the necessary customer support and customisation flexibility to drive around with additional peace of mind.
Reliance General Insurance offers a wide range of car insurance plans. Our
long-term car insurance plan covers your car from unforeseen circumstances, such as man-made disasters, natural calamities, accidental damage, theft, and more.
Frequently Asked Questions
1. What is the eligibility of long-term car insurance plans?
The basic eligibility for a long-term car insurance plan includes -
2. Is there any difference in long-term care costs by state in India?
There might be some difference in the range of premiums offered by different states in India for a long-term car insurance plan. This is because the location's risk aspect is one of the factors taken into consideration when calculating the policy premium.
3. Who benefits from long-term car insurance?
The long-term car insurance benefits are highly helpful for every car owner.
However, it is often purchased by drivers who have a clean driving record, drivers who require continuous coverage without the stress of renewal, vehicle owners who prefer convenience and flexibility, and car owners who want to keep their vehicle for a few years.
