Top 10

Top 10 Benefits of a Long-Term Car Insurance Policy

Personal Finance

According to the Motor Vehicle Act of 1988, every vehicle owner must purchase third-party insurance. It is needed for the protection of individuals, in the event of a road accident. A long-term car insurance policy comes with a longer validity period. According to the Supreme Court of India, every new vehicle owner needs to purchase such long-term insurance. These policies have a validity period of three to five years. Let us check the benefits of such a long-term car insurance policy. 

Benefits of a Long Term Car Insurance Policy 

Long-term car insurance online is a multi-year car insurance policy. Due to this policy, the holder will benefit from extended coverage. Usually, it is for more than one year. You do not need to worry about renewing or claiming your policy every year. There are many more benefits to a policy such as this one. They are as follows:

1. Prevents Price Hiking 

The cost of most car insurance policies undergoes a hike each year. With time, every policy tends to get more expensive. Buying a long-term car insurance policy helps to overcome this price hike. By avoiding annual renewals, you can save a considerable amount. This saves you a lot of money. So, it is always better to opt for a long-term policy. 

2. Availing Discounts 

Most policy providers will be willing to offer you a discount. It is applicable if you purchase a long-term car insurance policy from them. This also happens because such policies tend to be more expensive. But if you think that you can get a similar discount benefit with an annual policy, then you may be wrong. 

3. Immensely Convenient

Renewing a car insurance policy each year is a difficult task. If you miss the date of renewal, you could end up losing all the benefits and coverage of your insurance plan. If your policy ends up lapping, your insurance provider can end up denying any claims on the policy. A long-term policy ensures that you do not need to undergo the hassle of renewing every year. A policy such as this one helps you, especially if you tend to stay busy. Another point of convenience with a long-term policy is a vehicle inspection. Each year, before renewing your policy, the insurer will demand to inspect your vehicle. In the case of a long-term plan, it will not be a hassle. You will not have to get your vehicle inspected. 

4. Avoid Risks Associated With Non-Renewal 

Did you know that failing to renew your policy can expose you to various risks? Claim rejection is one such risk with serious results. In the event of an accident, you might have to suffer serious financial risks. Such risks are eliminated when you take a long-term car insurance policy. 

5. Transferring a No-Claim Bonus 

In a long-term car insurance policy, it is possible to transfer a no-claim bonus. You can transfer it to the next year of your policy. This can be done if no claims were made on the policy during the previous year. You can browse various policies and find one where you get a higher no-claim bonus. In most cases, you can get it for long-term policies, but not annually.

6. Avoid Policy Expiration

In India, it is an offense to drive an uninsured vehicle. Buying a long-term car insurance policy means that you can avoid the risk of your policy lapsing. Drive worry-free and avoid the expiration of the policy for at least three years. After a policy lapse, you need to undergo lengthy paperwork and an inspection of your vehicle once again. 

7. Optimum Safety for Your Vehicle 

If you drive an uninsured vehicle, it will attract heavy fines. Your car stands exposed to risks without insurance. In the absence of a valid insurance policy, you are at risk. You could end up paying large amounts for the repair of your vehicle. By taking out a car insurance policy, you can avoid such risks. 

8. Save Time and Effort 

You do not need to spend time getting your car inspected again when renewing an annual policy. A long-term policy ensures that you preserve your efforts and time and stay free of the hassle of checking your policy status. 

9. No Need To Assess Insurers

By taking out a long-term car insurance policy, you commit to using the services of one insurance provider. There will be no subsequent need for you to recheck the available options in this case. With an annual policy, you need to check whether your insurance provider is providing the same benefits or not. This can be avoided with a long-term policy. You will get the benefit of the same features and advantages every year for the duration of the long-term policy. 

10. No Change in Policy Features and Benefits 

If you take out an annual policy, you will need to go through the fine print each time. Over time, many policies change. It could result in you having to bear irrational costs. A long-term insurance policy means that you are assured of the same features and benefits. You will not need to go through the changes to the policy. 

To Conclude

Buying a long-term car insurance policy has many benefits. Listed above are some of the most useful benefits of taking one such policy. The best items in the basket are discounts and higher no-claim bonuses. So, give yourself the benefit of the best coverage with a long-term insurance plan. It is best to check the details of any policy before signing up for it. Visit Piramal Finance to understand the features of your policy. Compare the policies and select the one that best suits your needs. Read the website for more information on various policies. This will help you make an informed decision about picking a suitable insurance policy.