In September 2019, the Supreme Court of India passed legislation requiring long-term car insurance for any cars bought after the first of that September. This is to increase protection for newer cars and drivers. This comes after the Supreme Court found that one out of three vehicles in India actually has the necessary third-party coverage. This is especially the case for cars that are at least three years old. Now, car insurance companies in India will be offering long-term car insurance for drivers with vehicles sold after August 31, 2019. Several companies will also offer bundled third-party liability and damage insurance for the policyholder’s car. As a result, long-term car insurance is becoming increasingly worth it.
Long-Term Car Insurance in India
The general objective of long-term car insurance is to provide coverage for a new vehicle for about three years –third-party coverage that is in the event you injure someone in a car accident. You are able to get coverage for damage to your own car with bundled plans like long-term third-party coverage for three years and one year of own damage coverage. In some bundles, one year can be upgraded to three. These types of car insurance bundles will be regularly offered.
Long-Term Car Insurance Benefits
There are several benefits when it comes to long-term car insurance. You’ll find a lot of the usual hassles associated with regular car insurance are streamlined or omitted altogether. Here is how long-term car insurance benefits you as a policyholder:
- No policy renewal – Drivers don’t have to worry about missing their car insurance renewal date with a long-term policy. For three years, a long-term policy will renew itself. Driving uninsured and having gaps in your coverage can result in some penalties.
- Premium discounts – Because more premiums are paid with long-term car insurance, the insurance company will be willing to cut you a discount as a long-time customer. At the same time, car insurance premiums are subject to annual changes. Having a long-term policy prevents this all together.
- Avoiding expiration – While you’re not worrying about policy renewals, you also don’t have to worry about your policy expiring or your insurance lapsing. Again, this avoids several headaches caused by such.
- No-claim bonus – At the time of policy renewal, the policyholder may receive a discount if they didn’t file any claims. A great benefit of long-term car insurance is that it prevents you from losing your no-claim bonus the next year, even if you did file a claim.
- Broader protection – A notable protection that long-term car insurance provides is theft coverage. Coverage limits for three-year car insurance tend to be similar to that of standard insurance, so it seems like a steal.
Finding Good Long-Term Car Insurance
With the new laws and requirements, finding long-term car insurance is an easy task. Sometimes the best long-term car insurance bundles will be offered to you. Regardless, always do your research and look at as many insurance providers as you can because everyone prices their car insurance differently.