If you plan to buy a new car, you might be wondering about the insurance options available for your vehicle. As per the Supreme Court order, all new cars sold after September 1st, 2018, must have at least a 3-year third-party insurance policy. That means you must pay the premium three years in advance and get coverage for any liability arising from third-party damages or injuries. But what about the protection of your own car? Is a third-party insurance policy enough to cover the risks and expenses involved in owning and driving a car? The answer, in short, is NO. You need a comprehensive car insurance policy that covers both third-party liability and your car's own damage (OD).
However, a comprehensive long term car insurance policy is not mandatory, unlike a third-party insurance policy. You can purchase it for one year or more. In this blog, we will explore the features, benefits, and process of buying long-term comprehensive car insurance for 3 years.
Features of a Three-Year Car Insurance Plan
A 3 year car insurance policy comes with the following features:
- Longer Validity: It ensures long-term protection without requiring yearly renewals. With a 3 year insurance for new car, you can enjoy the peace of mind and convenience of having a single policy for three years.
- Economical Option: Purchasing a 3 year comprehensive car insurance policy is typically much more feasible and cheaper than renewing the same yearly plan.
- Portability: Even after buying a 3 year comprehensive car insurance policy, you are still provided the option to change your insurance provider during this tenure. You have the option to port your policy to another insurer if you are not satisfied with the service or coverage of your current insurer.
- NCB Transfer: During the policy term, if you decide to sell your car or buy a new one, you are free to transfer your accumulated NCB to the new car or owner. This way, you can enjoy the benefits of discounted future premiums or get a better price for your old car.
Benefits of a Three-Year Car Insurance Plan
A 3-year comprehensive car insurance plan offers the following benefits:
- Loyalty Rewards: Who doesn’t like rewards? Some insurers offer loyalty rewards for long-term policyholders, such as discounts or additional coverage perks.
- Time-Saving: With a multi-year plan, you save time on annual policy shopping, allowing you to focus on other things that matter.
- Comprehensive Coverage: The policy provides coverage for both third-party liability and own damage to your car. This means that you can get compensation for any damage or loss caused by fire, theft, natural calamities, accidents, vandalism, etc. You can also opt for extra add-on covers, such as personal accident cover, roadside assistance, zero depreciation cover, etc., to enhance your protection.