In September 2019, the Supreme Court of India passed a law requiring long-term car insurance for all cars purchased after September 1. This is to increase protection for newer cars and drivers. It comes after the Supreme Court found that one in three vehicles in India actually have the necessary third-party cover. This is especially the case for cars that are at least three years old. Now, car insurance companies in India will offer long term car insurance to drivers whose vehicles are sold after August 31, 2019. Several companies will also offer bundled liability and damage insurance for the policyholder’s car. As a result, long-term car insurance is becoming more and more profitable.
Long term car insurance in india
The general purpose of long-term car insurance is to provide cover for a new vehicle for about three years – third-party cover, i.e. in case you injure someone in a car accident. car. You can get coverage for damage to your own car with bundled plans like long-term third-party coverage for three years and one year of personal damage coverage. In some plans, one year can be upgraded to three. These types of car insurance packages will be regularly offered.
Long term car insurance benefits
There are several advantages when it comes to long term car insurance. You’ll find that many of the usual hassles associated with regular auto insurance are simplified or omitted altogether. Here’s how long-term auto insurance benefits you as the 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 be renewed. Driving without insurance and having gaps in your coverage can lead to penalties.
- Premium discounts – Because more premiums are paid with long-term auto insurance, the insurance company will be willing to cut a discount to you as a long-time customer. At the same time, car insurance premiums are subject to annual changes. Having a long-term policy keeps all of this together.
- Avoid expiration – While you don’t have to worry 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 renewal of the policy, the policyholder can benefit from a discount if he has not filed any claim. One of the great advantages of long-term car insurance is that it prevents you from losing your bonus-malus the following year, even if you have made a claim.
- Broader protection – One notable protection offered by long-term auto insurance is coverage against theft. Coverage limits for three-year auto insurance tend to be similar to standard insurance, so it seems like a theft.
Find good long-term car insurance
With new laws and requirements, finding long term car insurance is an easy task. Sometimes you will be offered the best long-term auto insurance packages. Either way, always do your research and check out as many insurance providers as possible, as everyone prices their car insurance differently.