Benefits of Long Term Car Insurance Policy

Driving a car without vehicle insurance is illegal in India and most vehicle owners seek insurance policies for their car every year. There are several car insurance policies available for car owners such as third party liability insurance, comprehensive car insurance, and a long term car insurance policy for three years continuously. There are also many add-ons to be included with these policies, to render comprehensive coverage. Of all the car insurance policies that are available for car owners, the long term car insurance policy is beneficial in several ways. This is the best policy for those who forget to renew their insurance premiums every year and face its financial implications later on.

Benefits of Long Term Car Insurance Policy

Long term or multi-year car insurance policies will help the policyholder to enjoy extended coverage for three years, without having to worry about renewals and claims. Other benefits of long term car insurance policies are as follows:

1. Prevent Price Hikes:

The cost of insurance policies is hiked every year and they get expensive with the time. By purchasing a long term car insurance policy, it is possible to escape price hikes for at least three years and save about 20-40% of the money on annual renewals.

2. Discounts:

As purchasing a long term car insurance policy is costlier, the insurance provider can offer a discount on the policy amount on purchase of three years’ car insurance. This may not be possible with annual plans.

3. Convenience:

Missing to renew the insurance policy every year can end up losing the benefits and overall coverage of the insurance plan. No claims are entertained by any insurance company for a lapsed policy. With long term car insurance, there is no hassle to renew the policy every year. For busy businessmen and for those who are busy with other life activities, these policies can be of much help.

Also while renewing the policy every year, some Car insurance companies demand thorough inspection of the vehicle before issuing the policy for the next year. With long term plans, such hassles are also eliminated.

4. Prevents Risks Associated with Non-Renewals:

Failure to renew the policy annually can expose the vehicle owner to a series of risks such as claims rejection, having to incur the financial consequences of damages in the event of accidents, etc. With a long-term policy, such risks are eliminated.

5. Transfer of No-Claim Bonus:

With a long term policy, it is possible to transfer the No-claim bonus to the next year of the policy, if no claims were made in the past year. Some insurers offer a higher No-Claim bonus for long terms policies compared with short term policies.

Also Read

Guide to Get a Duplicate Copy of Your Car Insurance Documents

A Guide to Bumper to Bumper Insurance for Car

Bottom Line

There are a myriad of plans and policies when it comes to car insurance. And while choosing a plan there are several aspects to consider such as the coverage offers, the premium rates, claims benefits, etc. A long term car insurance policy seems beneficial in all aspects and is the best plan for busy people who keep forgetting their annual renewal.

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.