What are the Benefits of Purchase Long-Term Car Insurance?
In India, if you own a vehicle, it’s a must to get insurance that covers any harm or damage your vehicle might cause to others. This is called third-party liability insurance, and it’s required by the law. It helps pay for injuries or damage to others in case of an accident. Some people go for a bigger kind of insurance called a comprehensive policy, which covers more things, but it’s not mandatory. Car insurance online has a 12-month validity period usually. But renewing it every year can be tough for many. That’s where long-term auto insurance helps—they don’t have to renew it as often.
An insurance policy that covers a vehicle for a long term in India.
Long-term car insurance lasts for three years and covers your car for a long time. Some people call it multi-year car insurance because it protects your vehicle for several years in a row.
Depending on your needs: you can pick a 3-year policy that covers others if there’s an accident, or go for a 3-year one that also protects your car for the first year.
If you buy a new car in India after September 2018, you have to get insurance that covers others for a long time. This is a rule from the insurance authority, and not following it might lead to legal trouble. But if you got your car before that date, you can still choose a long-term insurance plan if you want to.
A new car driven by Mr. Anvesh causes an accident involving a pedestrian, and Mr. Anvesh is uninsured. Consequently, Anvesh will have to pay compensation to the third-party victim and face a fine and jail sentence. Anvesh could have avoided the financial loss & paid the fine if he had purchased a long-term car insurance policy for his new car.
How do Long-term Insurance Policies work?
The “long-term best car insurance online” lasts longer than regular insurance. In India, new car owners must get this insurance since September 2018, as per the Insurance Regulatory and Development Authority (IRDAI) and the Supreme Court. It lasts for three to five years. Even those who bought vehicles before September 2018 can get this long-term policy for cars, bikes, and such. As vehicles grow older and depreciate, some owners either don’t renew their insurance or buy less comprehensive policies.
Long-term Car Insurance Benefits
When more people have long-term auto insurance, it helps make sure that when accidents happen, the claims from the other people involved can be settled. Buying a long-term insurance plan for your car has some good advantages as follows:
- Long-term car insurance is convenient if you forget to renew your policy on time: You can avoid the hassle of renewing your car insurance every year by using this policy.
- When you get a long-term car insurance policy, insurance companies might give you discounts on the money you pay regularly for it: This happens because these car insurance plans make it cheaper for the insurance companies to handle paperwork and issue policies. Also, if your car has an anti-theft device, you might get more discounts on what you pay for insurance.
- A No Claim Bonus is a discount given to the policyholder for not filing a claim during their previous policy period: With a long-term insurance plan for your car, you get a bigger No Claim Bonus (NCB) compared to a regular insurance policy.
- To stay safe from not renewing your policy: If your car needs fixing or replacing after the renewal date is over, you’ll have to pay for it yourself. Do this because the coverage stops once the policy renewal date passes. Long-term car insurance lasts for three years, so you’re less likely to forget to renew your policy all the time.
- Regular or short-term car insurance needs you to get your vehicle checked when it’s time to renew the policy, which takes time and effort: You don’t need a yearly checkup for your car with a long-term policy because it’s not needed every year.
- The IRDAI sets the third-party premiums each year, and they might change: If the IRDAI raises the rates for third-party premiums, your multi-year car insurance premium might also go up. Your policy stays the same for three years, and you can’t adjust your premium until it’s time for renewal.
How can I benefit from a long-term policy on car insurance?
Regular premium payments are key with long-term auto insurance policy. Whether your car is new or used, securing a long-term policy is important. Always have your vehicle documents handy while driving – your RC, PUC certificate, and driving license – to steer clear of any traffic hassles.
Penalties or fines for driving a new car without extended third-party insurance.
Driving a new car without extended third-party insurance can lead to penalties as per Section 81 of the Motor Vehicles Act, 2019.
- A first offense might lead to a fine of Rs. 2,000 and a maximum of three months of imprisonment
- A second offense could mean facing a fine of up to Rs. 4,000 or imprisonment for three months.
Conclusions
Multiple car insurance policy downloads and plans are available.Choosing an insurance plan involves weighing several factors like coverage options, premium rates, and claim benefits. Car insurance is there to help when your car gets damaged in an accident, and the insurance company pays for it. It’s good for worries about theft, accidents, and other problems. To get the benefits, you’ve got to pay regularly. Long-term insurance is great because it lasts and is perfect if you tend to forget yearly renewals.