Owning a car comes with many responsibilities, and one of the most important ones is having the right insurance policy. Car insurance is not only a legal requirement but also a necessary measure to protect yourself and others on the road. While many people choose yearly plans, long-term car insurance policies are getting more popular due to their wide range of benefits. Such plans provide protection for more than one year, which helps drivers save money in the long run.
Let’s find out what a long-term car insurance policy is, its many advantages, how to avail of it and what happens if you drive a new car without it.
What is a long-term car insurance policy?
A long-term car insurance policy is a plan that provides coverage for your vehicle for a period longer than the usual one-year term. These policies offer protection for two to three years at a fixed premium. Once you purchase a long-term policy, you do not need to renew it every year, which is a major benefit for many drivers.
Long-term policies can include comprehensive coverage as well as third-party car insurance, which is the minimum legal requirement. With a long-term policy, you can choose either comprehensive cover or stick to third party protection depending on your needs.
Benefits of a long-term car insurance policy
Here are some of the important benefits:
- It eliminates the hassle of policy renewal
Renewing a car insurance policy every year can be time-consuming and easy to forget. Missing the renewal date can leave you without coverage, which puts you at legal and financial risk. With a long-term policy, you avoid this stress entirely. You simply pay once and stay protected for a longer period.
- Get more discounts on premium
Long-term car insurance policies come with attractive discounts. Insurance companies may offer reduced premium rates as a reward for committing to a longer coverage term. These discounts are usually higher than what you get with annual policies. In addition, if you include third-party car insurance in a long-term plan, the overall cost can be lower than renewing a basic third-party cover every year.
Forgetting to renew your car insurance on time can lead to an unintentional policy lapse. This not only exposes you to legal penalties but also leaves your car unprotected. A long-term insurance policy keeps your vehicle continuously insured. You do not need to set reminders or worry about missing deadlines.
- You will not lose out on NCB
NCB stands for No Claim Bonus. It is a discount given to you by your insurance company for not making any claims during your policy term. The longer you go without making a claim, the higher the NCB you can earn. These benefits remain available even with a long-term policy. Some insurers offer additional NCB protection or allow you to earn it at a faster rate. This can lead to significant savings in future premiums.
- It ensures optimum safety of your car
Long-term car insurance offers consistent and uninterrupted coverage, which is important for ensuring your vehicle is always protected. In the event of an accident, theft or any natural disaster, you can rely on your policy to cover the costs without the stress of out-of-pocket expenses. .
How to avail benefits of this insurance?
To take advantage of a long-term car insurance policy, follow a few simple steps:
- Compare different insurers: Not all insurance companies offer long-term plans. Research and compare policies from trusted providers to find the best option.
- Check what is covered: Ensure that the policy includes everything you need, such as own damage cover and third-party car insurance.
- Look for discounts: Some insurers offer early bird discounts or loyalty bonuses for choosing long-term options. Take advantage of these offers.
- Buy online: Many insurance providers offer additional discounts if you purchase the policy online.
- Keep your vehicle details ready: You will need to provide your car’s registration number, make, model and year of manufacture.
Penalties for driving a new car without long-term car insurance policy
As per the updated traffic regulations in 2025, the penalties for driving without a valid car insurance policy are as follows:
- First offence: A fine of ₹2,000 and/or imprisonment for up to 3 months, along with possible community service.
- Repeat offence: A fine of ₹4,000 and/or imprisonment for up to 3 months, with continued risk of community service.
It is especially helpful if you forget renewal dates or want to avoid legal trouble. Plus, if you include third-party car insurance in your plan, you meet the minimum legal requirement while enjoying long-term benefits.
Conclusion
A long-term car insurance policy is a smart choice for anyone looking for ease, savings and solid vehicle protection. Eliminating the need for annual renewal, offering better discounts and preventing policy lapses brings convenience and peace of mind. Whether you choose comprehensive or third-party car insurance, opting for a long-term plan ensures that your car stays covered at all times.
If you're planning to buy a new vehicle or simply want to switch to a more reliable insurance solution, consider the long-term option. It not only keeps you legally safe but also provides financial and practical advantages that make it a worthwhile investment.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.